EOS Decides To Confiscate Coins Exposed To Too Much HODLing
The cryptocurrency EOS decided to discourage token-HODLers by threatening with coin confiscation and account termination if the coins are being held by token holders for more than three years, without being used.
Use Your Coins, Or You Might Lose Them
The company in charge of the network hosting the cryptocurrency EOS, Block.one, has recently issued an announcement that the accounts that are in possession of EOS coins for long periods of time will be terminated. This is a very bad news for the so-called token HODLers, who prefer to hold their coins for years, and even forget that they have them.
The accounts themselves will have their coins confiscated and given to other holders, or they might be put on auction. However, one thing that is certain is that the owners of the accounts will definitely lose access, as well as all the coins that they had on them.
When it comes to distribution of coins found on such accounts, it will be based on the contract provisions system that was adopted for such cases. This will only include those who are in possession of EOS coins, and have been inactive for three or more years, since such a long period of inactivity serves as proof of the token holder’s disinterest in the cryptocurrency and further operations.
Coins Are Meant To Be Used
EOS platform works as a decentralized system, and its computing resources can be accessed through the use of its native cryptocurrency, EOS tokens. Those who hold these coins have the ability to use them for creating dApps, as well as communities. This can be one by staking tokens for Network, CPU, storage, RAM, and alike.
On the other hand, if someone stakes a CPU, for example, but doesn’t use the resources for smart contracts, or some other computation action, that person will be violating the platform’s rules, as per Article XV.
This rule was invented, as well as kept, in order to make sure that the token holders would not damage the platform’s operations through long periods of inactivity. This was confirmed by Rick Schlesinger, the leading block producer candidate, and EOS New York’s co-founder.
What this means is that those who are using the platform’s resources, performing various actions, and are staking tokens are helping the platform, and are using it properly.
Such individuals are not violating the platform’s rules, and will, therefore, not suffer from token confiscations or account termination. Those who do not use the platform, on the other hand, will have their tokens confiscated and distributed.