EOS Price Hits Yearly Low, 75.5% Nodes are Losing Money

It seems that the positive market momentum is turning against all cryptocurrencies once again in the recent two days. The EOS price is declining in spectacular fashion right. It lost 10.27% on Thursday and currently trading at $3. Meanwhile, EOS’s market cap has also been driven down to $2.7 Billion.

It was also reported that 75.5% of EOS nodes cannot make profits at present.

As we all know, EOS uses a Delegated Proof of Stake (DPoS) consensus mechanism. Different to those cryptocurrencies using PoW (proof of work) consensus mechanism that maintaining their blockchain network through mining, EOS blockchain network is empowered by 21 supernodes and 100 standby nodes. Community members will vote on delegates to represent them on the network, and these delegates are charged with accruing, processing and mining transactions into blocks.

However, according to blockchain media BlockBeats, most nodes are on the verge of losing. Stephane Bission, co-founder of EOS Nation, a node ranks around 30th among all EOS nodes disclosed that they may get 300 EOS rewards a day. When EOS was trading at $5, the daily income is just enough for paying staff salary.

Which means Stephane and his staff would be more suffered these days are the EOS price has dropped by another 20 percent.

In this June, it was reported that more than 95 percent of the EOS supernodes servers were running upon cloud servers of technology giants including Microsoft, Google, Ali cloud, and Amazon. Since then, there seems to be a great debate on whether EOS is still a blockchain as using cloud servers has betrayed the decentralization nature.

In addition, only the top nodes can still make profits in the bear market. Using the example of the EOC official recommended AWS EC2 node server, the everyday operating cost of one main server and one standby server is $13.338*24*2=$640. Which means any nodes that have a daily income of less than $640 (200 EOS) may face a loss.

According to data on the MyEOSKit, among the 200 EOS nodes, only the top 49 nodes can get more than 200 EOS rewards per day, under the assumption of all the nodes are using the official recommended server, 75.5% of EOS nodes are losing their money.

The nodes to EOS are like miners to Bitcoin. Without them, no transaction can be completed. If the price of EOS is keeping declining, nodes may under great pressures which will affect the whole EOS ecosystem.

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