On our recent announcement of our new proxy – EOSADAMPROXY, we have brought attention to several factors that we take into consideration when voting as a proxy, with one of them being geographic distribution. Geographic distribution amongst the top 21 BPs is quite important as it can help EOS to realize its maximum potential as well as increase the certainty of it.
Why geographic distribution？
The underlying principle of geographic distribution is as simple as the common saying ‘don’t put all your eggs in one basket’. With a balanced geographic distribution, EOS is dispersing potential risks and minimizing the impact of a possible damage. This could enable an even more stable and secure environment for EOS and its users.
There are various reasons for a balanced geographic distribution amongst the top 21 BPs, with one of the biggest reasons being political stability. Over the last year and so, we have witnessed the world of blockchain and cryptocurrency boom throughout the world. However, with such global phenomenon also came reactions. The use of cryptocurrency is still prohibited or heavily regulated in some countries today, and for countries with a degree of political instability, it can be difficult to ensure the certainty and scalability of EOS. For instance, having the top 21 BPs dominate in a region/country with authoritative tendencies may lead to a situation where BPs are not able to or limited in their capability in producing blocks due to the government passing new laws or regulations. Furthermore, some governments occasionally temporarily block the Internet to this day. And of course, internet access is one of the fundamental things for BPs to operate.
Another concern for a geographically concentrated distribution of the BPs is natural disasters. Natural disasters can heavily impact infrastructures, which the BPs may depend on in order to operate. Some parts of the world are more prone to certain natural disasters than others. For instance, having the majority of BPs in Japan or in parts of East Coast USA for example, puts the majority of BPs exposed to a higher risk of earthquakes or hurricanes respectively.
There needs to be competition between the BPs to maintain a healthy ecosystem. Geographical dominance, over time, can result in weakened competition and diminishing global community. This is because being a BP is comparable to running a technology business – it’s expensive. Yet, the financial gap between a block-producing and a stand-by BP is significant. A BP in the 22nd position will earn about 50% of what a BP in the 21st position, the threshold for block producing, earns. This may seem irrelevant to many token holders but this will make it more difficult for some BPs to justify staying in the EOS Community. As a result, they may eventually cease their operation in the EOS Community.
Couple this with political instability or natural disasters, it could take a significant or even an irreversible toll on the EOS community. To give an example, imagine a country where the majority of the top 21 BPs were situated in experiences a political turmoil, resulting in blocked/limited access to the internet. Such events happen to this day.
We have devised a proposal for the optimal number of BPs in each continent, based on a combination of weighing (75% GDP, 25% number of internet users) of the continents’ economic power and internet users. This is what we proposed for a balanced geographic distribution:
(e.g. BP/Internet users indicates the values from dividing the number of internet users to the number of block-producing BPs)
If we want to maintain and keep up with scalability and realize the full potential of EOS on a global scale, the entire world should be able to support the ecosystem and be as equally represented as possible in the EOS community. As token holders, many of us initially invest to witness the success of a global project. If the ecosystem becomes geographically concentrated, can we really say that we are getting closer to our goal? Or are we drifting further away?
If you believe in equal representation within the community, we encourage you to vote regardless of the number of tokens you own and take geographical balance into your votes. Many small changes can bring about even a greater change.