The distribution of EIDOS tokens has led to an overload of the EOS network and an increase in fees

The creators of the EOS project promised to create a blockchain with a throughput much higher than that of Ethereum and its analogues. But practice shows that he is also not able to withstand the multiple growth of transaction volumes.

The story of the “failed” EOS stress test began on November 1, when several EOS users found that some decentralized applications (dApp) could not process transactions. There were complaints about excessive CPU usage and the growth of the required amount of tokens in the wallet for transactions. At peak times, the network required to have up to 150 EOS in the wallet, which not all users are capable of creating. Some community members even suggested that it was time to ask Block.one to support the system with additional tokens.

The reason for this was the smart contract of the EIDOS project, launched on the EOS network, which became the absolute record holder for the entire history of the applications on this blockchain. For November 3 and 4, the number of transactions with these tokens amounted to 1.89 million, while there were only 1260 active users.

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The reason turned out to be commonplace: the EIDOS team announced the distribution of tokens, according to which it was necessary to send EOS coins that would be immediately sent back to the EIDOScoin application address. After such an operation, the user received 0.01% of tokens from the amount accumulated by the smart contact at the time of the transaction to the application address. This prompted the participants of the distribution to generate a huge number of transactions.

Why did the token distribution crash the EOS network?

Every second, 25 new tokens are created at the EIDOScoin application address, and this will happen until their total issue reaches $ 1 billion. EIDOS tokens are already traded on cryptocurrency exchanges, in particular Bithumb, at the rate of $ 0.02. Thus, any participant in the promotion can receive $ 0.5 by sending to EIDOScoin any minimum amount in EOS, equivalent to three cents at the beginning of the distribution.

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However, in reality, income and expenses began to grow rapidly. To take part in the promotion, the user needs to have enough EOSRAM on his account. That is what caused the unprecedented increase in the cost of resources in the EOS network. The memory market (RAM) works through REX tokens, the rush demand for which led to the blocking of 79% of all miner resources, raising the rental cost by more than 100 times.

It is also noteworthy in this story that EIDOS is the “heir” of the deceased ENUMIVO project, which was created on the Ethereum blockchain. Even more interestingly, the ENUMIVO project was based on the idea of cheapening resources for smart contract developers.

EIDOS developers plan to distribute 80% of the issue of tokens, which will subsequently be used as liquidity to launch a decentralized exchange where cryptocurrencies will be traded only in pairs with EIDOS tokens. The owners of these tokens will be able to rent them to market makers and receive a portion of the commission paid by traders for each transaction.

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This situation is similar to the story with “cryptocotics” (the game Cryptokitties), when the euphoria of NFT purchases (collectible tokens) led to a sharp increase in gas prices in the Ethereum network. Aaron Cox, developer of the Eym-based Greymass wallet, said this situation could be symptomatic when developing a network:

“Today’s EOS congestion is an interesting scenario in which users are encouraged to use their own resources in exchange for part of the new token distribution.”