Block.one has been compelled by the EOS Network Foundation to uphold a commitment to invest $1 billion in the EOS network.
EOS Network vs. Block.one Legal Battle Over $1 Billion Investment Commitment
Yves La Rose, the creator, and CEO of EOS, threatened to file a class action lawsuit against the blockchain investment company in an open letter to Block.one.
In 2018, Block.one launched the software it created for the EOS blockchain. It then conducted the largest initial coin offering (ICO) of the year, raising almost $4 billion. The EOS community has since grown angry with Block.one, though.
In order to assist the network’s expansion and growth, Block.one initially committed to investing $1 billion. La Rose, however, charged the business with breach of contract in a letter sent on Saturday. In the letter, it was claimed that the business “has provided minimal real support to EOS Network efforts to develop the network.”
As time has passed, it has become apparent that [Block.one] does not have and has never had any intention of investing the $1 billion promised in EOS Network.The letter
History of EOS and Block.one
The EOS.io protocol was initially developed under the direction of Block.one. But by 2021, tensions had developed in the bond between Block.one and the EOS Network Foundation.
The network’s block producers banded together to withhold payments of EOS tokens to Block.one after attempting to wrest control of the software’s intellectual property from the company but failing. 100 million EOS over ten years were supposed to be given to Block.one initially. The company, however, received only 33 million after it was rejected by the EOS community.
What is EOS?
EOS is a platform for blockchain infrastructure. For building decentralized apps, it was developed as a Layer 1 solution.
What does the Letter Say?
The EOS Network Foundation urges EOS token owners to take legal action against Block.one for breaching its pledge to invest in the EOS ecosystem in the open letter. The letter asserts that Block.one’s underinvestment has hurt both the performance of the EOS network and the value of the EOS token.
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