EOS Foundation CEO writes Blockone for failing in its $1 billion investment commitment

EOS Network Foundation

The CEO of EOS Network Foundation, Yves La Rose, has written an open letter to Blockone (B1) in a bid to compel the company to meet up with its $1 billion commitment to the network.

According to the letter posted on a Twitter post that he made on Sunday, May 21, some of the actions that the network’s foundation intends to take include legal action and a hard fork that would see Blockone-owned EOS tokens excluded from the EOS network. This will also affect the crypto trading platform Bullish, owned by Blockone.

Block.one promised to invest $1 billion in 2018

The letter titled “An Open Letter from the CEO” stated that Block.one made a commitment to invest $1 billion into the EOS project at the peak of the initial coin offering (ICO) of 2018. The fund was part of the proceeds of the ICO meant for the development of EOSIO. La Rose said that Block.one has not fulfilled its commitment to the network, despite the fact that investors who bought tokens during the ICO did so with the expectation that the funds would go towards the development of the EOS network.

“As time has passed, it has become apparent that B1 does not have and has never had any intention of investing the $1 billion promised in EOS Network. EOS token holders relied on B1 promises when “They purchased the initial ERC-20 tokens, and later when they purchased EOS tokens for use on the EOS Network,” La Rose wrote.

He then outlined the actions that the foundation is going to take to ensure that B1 fulfills its investment commitments to the network. He said that this has become necessary considering the fact that the inaction of Block.one has resulted in the undercapitalization of the EOS ecosystem.

Actions the EOS ecosystem intend to take against Block.one

La Rose suggested:

A legal action by EOS block producers and token holders to make Block.one fulfill its investment commitments, considering that the EOS ecosystem would have had improved functionality if Block.one did what was expected of them.

The second option was a hard fork that would exclude the tokens owned by Blockone and its trading platform, Bullish. La Rose said that this would decrease the circulating supply of EOS tokens and boost the confidence of the EOS ecosystem. He further highlighted the need for concerned parties to reach out to the EOS ecosystem legal department and for action to be taken as soon as possible.

Author: Jofor Humani

Jofor is a crypto journalist with passion for investigative reviews.