Introduction
The EOS Network Foundation (ENF) has delivered a stern message to its community, advising them to decline a $22 million settlement put forward by Block.one. The dispute arises from an ongoing class-action lawsuit involving former EOS investors and the blockchain company Block.one.
Background: The Promise and the Reality
The Initial Coin Offering and the Grand Plan
Block.one made headlines between 2017 and 2018 by raising an extraordinary $4 billion to cultivate the EOS blockchain during its initial coin offering (ICO). Furthermore, the company committed to redirect $1 billion of the proceeds into the EOS network ecosystem, according to the ENF.
Alleged Failure to Fulfill Commitment
Despite their considerable pledges, Block.one stands accused of failing to meet their commitments to the EOS network. According to the ENF, the proposed settlement sum of $22 million is minuscule compared to both the $4 billion amassed during the ICO and the $1 billion promised for investment.
ENF’s Stand: Reject the Settlement
Potential Consequences of Acceptance
The ENF highlighted the severe implications that could stem from accepting the $22 million offer. Acceptance of the terms would mean relinquishing any future legal claims against Block.one, in return for a payout that ENF believes does not truly reflect what is owed to the community.
Warning Against Restrictive Terms
Endorsing the settlement could also hamper community members’ ability to pursue further legal remedies or seek a more suitable solution later on. ENF’s message is clear: the settlement is not only insufficient but could also limit the community’s options moving forward.
The Strong Message of Opting Out
By encouraging community members to opt out of the settlement, ENF aims to send a robust message to both Block.one and the court. They argue that this action demonstrates that the proposed settlement falls drastically short of compensating the community for the losses endured due to Block.one’s actions.
Conclusion
The ENF’s advisory against the $22 million settlement offered by Block.one sends a clear signal of dissatisfaction with the proposal. They contend that the amount is nowhere near what’s justly owed to the community and caution members against accepting the offer, as it may impede future legal actions. This unfolding legal drama underscores the complexities and high stakes in the rapidly-evolving blockchain industry. Only time will reveal how this legal battle will unfold, but ENF’s firm stance ensures that the debate is far from over.
