While cryptocurrencies have seen a severe slump in their values during last few months, against the run of the industry EOS price jumped by 30% to close in on $9 on Wednesday. The sudden appreciation in price took the cryptocurrency to a market cap in excess of $6.6 billion leaving Cardano and Litecoin behind in the process. EOS now sits on fifth position in all cryptocurrencies by market capital.
This bullish trend seems to be linked to eosDAC airdrop whose blockchain snapshot will be released on 15th of this month which marks the 300th day of EOS’s Initial Coin Offering (ICO). On this day all wallets storing at least 100 EOS cryptocurrency tokens are scheduled to receive an equivalent amount of eosDAC tokens which will be transferred to the EOS mainnet that is scheduled to launch later this year. Traders who are in possession of less than 100 EOS tokens will also receive eosDAC tokens but they’ll have to go through the process manually.
This isn’t something new as cryptocurrencies tend to appreciate in value prior to an airdrop but once the blockchain snapshot locks down airdrop balances, the price correction follows. So it wouldn’t be of any surprise if EOS price rally stalls as we enter into the next week.
Decentralized Autonomous Community (DAC) works according to a constitution encoded in smart contracts present on the blockchain. This is a unique way of bringing the community together as a unit and is only achieved through EOS software. DAC is under control of token holders and board members who vote to run community’s operations.
According to eosDAC’s website, the core principles of the community include fairness, excellence of service provision, support of EOS communities worldwide, openness, transparency, independence and avoidance of electoral fraud.
“The EOSIO Software being developed by Block.one will facilitate the first highly scalable smart contract blockchains, with transaction fees covered through small levels of token inflation. This will allow the development of genuinely scalable decentralized applications, and online/onblock businesses which can be owned by their communities.”
Instead of mining on the algorithm of proof of work like popular currencies such as Bitcoin and Ethereum, EOSIO blockchains will use the Delegated Proof of Stake algorithm, where community’s EOS token holders will vote in 21 main block producers and 100 reserve producers. Block producers will need massive infrastructure to manage enterprise league decentralized applications and will require to be formidable entities with scaling capability. Block producers will be paid through the limited inflation of EOS tokens in circulation.