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Coinbase increases amount of staked CPU to unblock customers’ EOS transactions

Priya

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Coinbase increases amount of staked CPU to unblock customers EOS transactions
Source: Unsplash

Recently, one of the leading blockchains, EOS was reported to have been facing network congestion, with the reason being the airdrop of EIDOS project that was launched at the beginning of this month. On November 9, Coinbase released an official blog post titled ‘EOS enters congestion mode due to EIDOS airdrop’ explaining the entire scenario.

The blog stated that the exchange had started to witness “degraded performance for EOS transactions” on November 1, adding that they did not have “enough staked CPU” in order to have all their transactions processed by the network. The exchange then pointed the reason to be indeed the EIDOS airdrop, stating,

“This degraded performance can be attributed to the massive increase in activity on the EOS network related to the recently launched EIDOS tokens airdrop. Coinbase responded to this issue by increasing the amount of staked CPU in the wallets we control to unblock customer transactions.”

The blog post elaborated on the entire situation causing the congestion. It explained that the airdrop that started on October 31, “involved sending EOS transactions to and from the EIDOS contract.” Considering that exchanges have started to list the token, pegging it with USDT, it has opened the gateway for people to sell the airdrop token in exchange for USDT. The blog further stated that this trading opportunity was exploited by people, explaining,

“people are using leased CPU to dramatically increase the number of transfers processed by the EOS network. This increased activity has caused the EOS network to enter congestion mode, which limits the amount of transactions a user can broadcast to their pro-rata share of total staked CPU resources on the EOS network.”

Source: Coinbase

Source: Coinbase

Kevin M, CEO of Envadr, also expressed his opinion on the situation by stating that the “EIDOS attack” would go on for more than 20 days. He said,

“#eidos attack hasn’t stopped and probably won’t for 20+ days click the “transactions” tab on the bloks.io explorer”

Meanwhile, a Reddit user, CryptoInvestor87 stated that EOS network was not “congested” but has merely become “more expensive to use,” further adding that using the term congested was “wrong.” The Reddit user said,

“EOS isn’t congested, it’s become prohibitively expensive for most users because of the cost of CPU given the fact that most dapps weren’t better prepared. I’m most disappointed in Newdex. How are you a Top 21 BP making hundreds in EOS and you weren’t better prepared with free CPU to users? […]

Priya is a full-time cryptocurrency writer at AMBCrypto concentrating mostly on privacy coins. A graduate in economics, Priya focuses on developments on Ethereum and blockchain technology.