EOS rallied despite Governance Chaos: EOS is having problems in its governance, but its token price was one of the only cryptos to see gains on Wednesday.
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There’s been a ton of controversy on EOS blockchain surrounding the structure of its governance. In its current constitution, there are three distinct groups work to ‘keep one another in check.’ These three groups in the EOS ecosystem are the so-called Block Producers (BPs) – the equivalent of miners on blockchains such as Bitcoin (BTC).
However, the nature of their role and power has created a bit of a mess and confusion within the community. To the point that one of EOS’ top “block producers” had to get ultra harsh on Monday on the topic, saying that “They have to figure their own (bleep) out.”
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All this chaos began on June 17, just three days after the network’s launch. After a lot of backs and forths, on June 27th Dan Larimer, the CTO of EOS, has proposed rehauling the project’s existing constitution to limit the so-called arbitrators’ powers. Based on the comments on EOSGov Telegram chat stream, it appears the conversation around how to clean up the messy arbitration process is now moving in a productive direction. And thus the surge in EOS value.
Taking a look at the EOS price action on the daily chart, it’s been just supported at the 61% Fibonacci retracement level at around $8 while moving below a bearish Ichimoku cloud. We remain in a wait-and-see mode to discover whether this support can prevent the prices from moving lower to the next psychological level, which is $4.6. The important resistance levels are set at $10 and $12 respectively.
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