EOS is not suitable for the HODL Strategy
If you purchased EOS to become a long-term investor, you should probably revise your plans. In accordance with the Constitution of the project, if your account is inactive for 3 years, it can be sold on an auction.
The EOS project published the list of rules in the document called Constitution. Rumors tell this is only an assumption, while the EOS community still must ratify it. However, the beginning of the document states:
This constitution is a multi-party contract entered into by the Members by virtue of their use of this blockchain.
Questions arise immediately in the first sentence cited above, as there is no explanation of the term “member” in the document.
The XIII article of the EOS constitution states:
This Constitution and its subordinate documents shall not be amended except by a vote of the Token Holders with no less than 15% vote participation among tokens and no fewer than 10% more Yes than No votes, sustained for 30 continuous days within a 120 day period.
Thereat 10 addresses in this network hold 50% of all EOS tokens. In theory 10 subjects have all constitutional freedom, and can change the law accordingly. For example, they can decide who will be a “member”, while changing this definition any time.
The XVIII article of the EOS constitution states:
Members agree to hold software developers harmless for unintentional mistakes made in the expression of contractual intent, whether or not said mistakes were due to actual or perceived negligence.
First of all, terminology used in this article of the Constitution makes it difficult for perception and understanding. Moreover, the difference between “actual” and “perceived” negligence is not clear.
Even omitting all legal aspects, it is strange that the Constitution waives responsibility from the developers for errors and bugs. Especially in relation to the definition of “developer” (Article VIII of the Constitution):
Each Member who makes available a smart contract on this blockchain shall be a Developer.
The XVII article of the EOS constitution states:
A Member is automatically released from all revocable obligations under this Constitution 3 years after the last transaction signed by that Member is incorporated into the blockchain. After 3 years of inactivity an account may be put up for auction and the proceeds distributed to all Members by removing EXAMPLE from circulation.
It is obvious that authors of the Constitution tried to stimulated the token usage. However, this article endangers all investors who placed money with the investment goal only. There is no explanation why inactivity should be punished.
This is not the complete list of discrepancies of the given document. Though EOS New York states this is only an assumption, the document does not say anywhere that it is an assumption.