Page 42 - Understanding EOS TojuKaka FlipBook

two major political systems that are associated with
EOS are Representative Democracy and Plutocracy.
EOS uses a governing system where 21 delegates
called block producers are elected into power.

Their role is to produce blocks. They host a copy of
the network database on their servers – they have the
power to effect changes to this database but in order
to do so, they must come to a consensus(agreement)
with 2/3 of the block producer agreeing to proceed.

Although the BPs can effect change to the EOS
network through voting on issues, their decisions are
usually guided by the token holders through a
referendum.

In theory, if a BP does not contribute positively to
the network or if he acts contrary to the will of the
voters, he is voted out by token holders.

EOS uses a Delegated proof of stake in the sense
that the voting is pro-rata or based on stake. A token
holder who holds 100 EOS tokens would have 100
units of voting rights (for instance) and this is
significantly higher than a user who has just 1 EOS
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