EIDOS Air Drop Caused EOS Network Congestion
The EIDOS token airdrop created congestion in the EOS blockchain. Coinbase, in its blogpost, has reported that transactions carried out on EOS blockchain got delayed due to a network congestion triggered by the EIDOS token airdrop.
The issue, at the time of reporting, has been resolved through an increase in the processing capacity of the CPU, safeguarding an adequate amount of CPU time available on the network to handle the transactions.
Notably, the event resulted in a hike in the cost of CPU time by roughly 100,000% in a matter of 4 hours. The CPU time price hit a high of 7.69 EOS/millisecond.
As per Coinbase, on October 31, a token named EIDOS was unveiled on EOS and its airdrop includes a process of initiating the transaction on the network using a smart contract.
Cryptocurrency exchanges have been facilitating trading on EIDOS/USDT pairs from the beginning of this month to permit crypto enthusiasts to exchange their tokens for stablecoin.
With the intention of selling the airdropped tokens by increasing the number of transfers handled by the blockchain, users have acquired the network’s CPU time on lease. That caused a congestion of the EOS network and prohibited the number of trades users can initiate on the basis of their pro-rata percentage of total staked CPU resources on the network. The token related activity represented a major share of activity on the network.
“Currently, we’re observing around 95% of all EOS transfer actions are related to the EIDOS contract.”
Average users, who do not hold a large quantity of staked CPU resources, face issues in initiating transactions. Nevertheless, the situation did not remain like that for a long time. The situation turned normal very soon because it is not beneficial to collect tokens or CPU leases expire at the end of 30 days, without any renewal of lease by the lenders. Coinbase also underlined:
“It is important to note that the EOS protocol is behaving as expected, but congestion mode prevents users from having transactions processed that exceed their CPU stake.”
Notably, in October, EOS took the numero uno position in the China’s state-backed cryptocurrency ratings, while the most popular crypto Bitcoin (BTC) was ranked 11th.