The EOS Network Foundation, the entity established to assist the EOS ecosystem’s growth, is exploring legal action against estranged parent Block.one, demanding $4.1 billion in damages.
CEO of EOS Network Foundation Yves La Rose made the announcement through his tweet. He wrote, ” As Founder of @EosNFoundation, I share your frustrations! We are taking further steps to hold @B1 accountable for its past actions and broken promises against #EOS—review of all possible legal recourse to seek $4.1B in damages underway. Let’s do this together! #4BillionDAO coming.
Much needed step to protect the interest of EOS community
He wrote in a blog that the foundation has appointed a Canadian law firm to evaluate Block.one’s activities and commitments to the EOS community and investors to see whether alternatives are available for legal proceedings. He mentioned that they are aware that many members of the EOS community feel that Block.one has not kept its word about earlier pledges. The community and individual EOS users have been affected as a result of their actions.
He added that in November and December 2021, they had participated in talks with Block.one to seek to establish a fair and reasonable conclusion with Block.one, which would position the EOS community for future success. He noted that “Block.one opted to walk away from the discussions and as a result the EOS Block Producers agreed it was in the best interest of the community to freeze the vesting of all the EOS tokens that Block.one planned to earn in the future.”
They had raised $4.1 billion in its initial coin offering (ICO) in 2018. La Rose laid the responsibility solely on the shoulders of its primary investor when the blockchain protocol fell short of expectations. The EOS community felt that Block.one has switched its focus and money, including its vested EOS tokens, to the new crypto exchange Bullish, which was introduced in May 2021.
On December 8, the EOS community chose to suspend payments to Block.one. The decision comes amid ongoing discussions among the community regarding the dependability of Block.one .They stated that the business had afflicted the network with centralization.