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EIDOS Airdrop congests EOS blockchain: Coinbase report

EIDOS Airdrop congests EOS blockchain: Coinbase report
By We Play Coins
Added on Nov 10, 2019

EIDOS Airdrop congests EOS blockchain according to a Coinbase report.According to Coinbase, a token called EIDOS was released on EOS on Oct. 31 and its airdrop involves sending transactions on the network from the token’s smart contract.

What’s going on with EOS?

On November 1st 2019, Coinbase began seeing degraded performance for EOS transactions. Coinbase did not have enough staked CPU to successfully have its EOS transactions processed by the network. This degraded performance can be attributed to the massive increase in activity on the EOS network related to the recently launched EIDOS token airdrop. Coinbase responded to this issue by increasing the amount of staked CPU in the wallets they control to unblock customer transactions. They shared their analysis of EOS resources, REX markets, and how these were affected by the EIDOS token airdrop.

Key Facts

  • A token called EIDOS was released on the EOS network on October 31st 2019.
  • EIDOS airdrop distribution involves sending EOS transactions to and from the EIDOS contract.
  • Exchanges are listing EIDOS/USDT pairs, meaning that people can sell airdropped tokens for USDT.
  • To take advantage of this trading opportunity, people are using leased CPU to dramatically increase the number of transfers processed by the EOS network.
  • This increased activity has caused the EOS network to enter congestion mode, which limits the amount of transactions a user can broadcast to their pro-rata share of total staked CPU resources on the EOS network.
  • Normal users are unable to get their transactions processed due to their relatively low amount of staked CPU resources.
  • It is important to note that the EOS protocol is behaving as expected, but congestion mode prevents users from having transactions processed that exceed their CPU stake.
  • The EOS network should be expected to stay in this state until it is no longer profitable to collect EIDOS or until the massive leases taken out on REX expire after 30 days and the leasers don’t renew their lease.

EIDOS Airdrop

At 6pm PST, October 31st 2019, a new contract was created on the EOS blockchain for the EIDOS token. In order to distribute EIDOS, the contract uses an airdrop pattern that functions as follows:

An EOS user sends a minimum of 0.0001 EOS to the EIDOS contract. The EIDOS contract will then send a transaction returning the same amount of EOS back to the original sender.

The EIDOS contract airdrops a certain amount of EIDOS to the original sender’s address. In this way, anybody holding at least 0.0001 EOS is able to receive EIDOS. EIDOS Airdrop congests EOS blockchain after massive amounts of activity.

Exchanges are listing EIDOS

On November 1st, a number of exchanges decided to add the EIDOS token to their list of supported assets. Specifically, these exchanges have introduced an EIDOS/USDT trading pair.

The above screenshot shows EIDOS/USDT trades clearing at 3:40pm PST on November 4th 2019. EIDOS is still worth a positive amount of Tether. Therefore, anyone who owns at least 0.0001 EOS can send a transaction to the EIDOS contract, receive some EIDOS, then attempt to trade it on an exchange for a non-zero amount of Tether.