Holding EOS For Too Long Could Be Very Damaging
It is common practice to hold coin and/or tokens for years before selling them, given they are assets that have a history to appreciate in value over time. While this may look like a good idea in an ever evolving cryptocurrency industry, it could be fatal to hold your EOS tokens for too long.
[crtools-table coin="EOS" fiat="USD,EUR" cols="price,cap,supply,volume,change" ]
Clearly stated in EOS’s constitution:
“A coin holder will automatically be relieved of all revocable obligations 3 years after the last transaction is incorporated in the blockchain. An account that has been inactive for three years will be auctioned out or distributed to other active members.”
Essentially, the constitution will terminate any EOS accounts which remain unused ‘inactive’ for three (3) years. While this does help re-circulate tokens into the circulating supply, this seems very counter-productive for the blockchain and cryptocurrency movement. Leaving inactive accounts in tact would increase the rarity and value of EOS coins, and simply confiscating coins from inactive accounts could lead to coins being wrongfully confiscated.
According to the co-founder of EOS Rick Schlesinger, the constitution was made to ensure that the intended utility of the platform is not forgotten EOS is a decentralized platform that was created to work with the EOS token. The tokens are to be used to create decentralized applications on the platform and not to be stored indefinitely. The company is encouraging token holders to use the tokens for the original purpose which is to build decentralized apps by staking the tokens. If a user stakes for RAM and doesn’t use that limited resources for a smart contract or computational action, the user is in violation of the constitution. There is no violation as long as the resources are being utilized.
A very gloomy future that could be the fate of some could still however be:
Example: A family member were to pass away and leave inheritance to a less savvy or crypto-enthusiastic individual, that person could look to cash out their inheritance, only to realize it’s all been confiscated and redistributed, per the EOS constitution.”
Comment your thoughts!