The ERC20-based EOS tokens are expected to become frozen on the Ethereum blockchain on June 2, 2018 22:59:59 UTC (shortly before the scheduled EOS mainnet launch). Evidently, holding a certain amount of EOS tokens at this stage is not equivalent yet to having the corresponding share of native EOS tokens. Instead, current holders of ERC20-based EOS tokens need to register their tokens through the EOSCrowdsale contract. Only after the registration, current token holders will be entitled later on the EOS mainnet with voting privilege for their favorite block producers or super-nodes, which currently undergo intensive competition and heated discussions.

In our last month study [1], we found as of 04/01/2018, among all issued tokens, EOS token registration rate is as low as 23.55%. One month later, we revisited and found as of 05/01/2018, the EOS token registration rate remains as low as 28.57%, with no improvement at all. Among the 28.57% registration, 10% is already reserved for block.one at the very beginning, leaving externally-circulating tokens with 18.56% registered! This is worrisome specially compared to recently leaped EOS market cap.

Detailed Results

To illustrate the monthly progress, we show in Figure 1 the registration status in the last seven months. Specifically, for each month, we choose the first day as the cut-off day for our calculation and the result is comprised of four stacked bars:

  1. EOSReserved: the reserved portion (with 100 million tokens or 10% of total supply) is withheld at address 0xb1 for block.one. The withholding address has been registered right after the crowdsale starts.
  2. EOSCrowdsale: the portion of tokens kept in the contract is still undergoing crowdsale. Certainly, they are not registered because those tokens could be transferred to any buyer during the crowdsale period.
  3. Mapped: the portion of tokens is currently circulated and the corresponding token holders have registered
  4. Unmapped: the portion of tokens is currently circulated and the corresponding token holders have not registered

Figure 1: EOS Token Registration Progress in the Last 7 Months

As of 05/01/2018, only one month before EOS mainnet launch, 71.43% of all tokens are still not registered! Among the unregistered, the unmapped portion contributes 64.12% and EOSCrowdsale helps 7.31%. This is alarming as the registration time window is closing with less than one month left. We emphasize that the mainnet launch will also freeze the EOSCrowdsale contract and thus make all these issued tokens non-transferable.

In the following table, we show the top 10 EOS token-holding addresses as of 2018-05-01 and their registration status:

  Address Share Type Label Registered
1 0x00000000000000000000000000000000000000b1 10.00% Reserved EOSReserved Yes
2 0xd0a6e6c54dbc68db5db3a091b171a77407ff7ccf 7.31% Crowdsale EOSCrowdsale No
3 0x742d35cc6634c0532925a3b844bc454e4438f44e 5.14% Exchange Bitfinex No
4 0x22b84d5ffea8b801c0422afe752377a64aa738c2 4.43% Exchange Bithumb No
5 0x88e343f4599292c2cffe683c1bb93cd3480bdbab 4.00% Individual   No
6 0xfe9e8709d3215310075d67e3ed32a380ccf451c8 3.78% Exchange Binance No
7 0x6cc5f688a315f3dc28a7781717a9a798a59fda7b 2.46% Exchange   No
8 0xadb2b42f6bd96f5c65920b9ac88619dce4166f94 2.43% Exchange   No
9 0x35576eac31ebd35fc07b524617045a4d890d30ac 2.18% Individual   No
10 0x174443351e21d47ed9ab51517a301107d92ede64 2.00% Exchange Kraken No

For the top 10 addresses, we use the same approaches described in [2] to identify and classify the addresses of cryptocurrency exchanges: Beside the two known EOS-owned addresses, there are six exchange addresses and two individual addresses, but none of them have registered yet. Especially, despite numerous announcements from various exchanges on registering for their customers [3,4,5,6], none of those exchanges on the top-10 list have taken the actions to complete the registration yet!

From another perspective, we notice that wallet-related mobile apps (e.g., Exodus and imToken) already made the efforts by providing convenient features for smooth token registration. It is time for these exchanges to put forth convincing plans to speed up the EOS-token registration, better sooner than later. It is also their best interests and responsibilities to protect their customers from any potential risks, especially caused by their sluggish actions. (For individual EOS-token holders, it is also your best interest to get registered as soon as possible.)

Conclusion

Despite the increased market capitalization of EOS, we highlight that a fully-engaged EOS ecosystem is impossible if we continue to observe a low participation in the token registration process. The low registration may possibly imply low participation of subsequent voting activities, which are crucial for smooth EOS blockchain operations. This is certainly not a situation the EOS community wants to face.

With that, we strongly urge the entire community and related shareholders to take the following actions, sooner instead of later:

  1. The publisher of EOS.IO software, i.e., block.one needs to elevate the efforts in advocating and promoting the need of token registration, which is a necessary step to better the development, operation, and maintenance of EOS blockchain;
  2. Various cryptocurrency exchanges should provide token-registration instructions in a transparent and timely manner to guarantee their customers that their benefits (including later voting privilege) will be protected;
  3. Individual token holders register your own valuable EOS tokens ASAP. Based on your wallets, here is the MetaMask guide [7], MyEtherWallet guide [8], and Exodus guide [9].

About US

PeckShield Inc. is a blockchain security company which aims to elevate the security, privacy, and usability of current blockchain ecosystem by offering top-notch, industry-leading services and products (e.g., smart contract auditing). Please contact us at Telegram, Twitter, or Email.

References