There are a lot of people who like to hold tokens for years before selling them. While this may look like a good idea in an ever evolving cryptocurrency industry, it’s not a good idea to hold your EOS tokens for too long.
Block.one doesn’t want you to hold your EOS tokens for too long and this is why the EOS blockchain has been inscribed with a constitution that will terminate the accounts of EOS owners who leave their tokens unused for too long. The accounts with unused tokens will be transferred to other active members or put up for auction. The redistribution of tokens will be based on the contract provision of the system.
Termination of Agreement
The agreement is as follows:
“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.”
Why EOS Doesn’t Want You to Hold Coins
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.
The downside to this is that most of the people who bought the EOS token during the ICO did it to make profit and not to create decentralized apps. The tokens were sold to anyone willing to buy.