How (and Why) to Vote for EOS Block Producers – The Ultimate Guide

With the launch of the EOS mainnet now complete, a lot of people have questions about how the voting process works for the much coveted Block Producer roles.

If you want to skip the next section and find out how to vote, scroll down 🙂

One chain to rule them all!

As you probably know, there will be 21 chosen block producers to run the main EOS mainnet. There may be other (less official) EOS networks, but for this article I’m focusing on the main one which will be supported by the block producers listed on the EOSGO website HERE

EOSGO have done an amazing job of analyzing each BP candidate based on a range of criteria, and their most recent BP candidate report can be found HERE

Current voting tallies can be found here: http://eosportal.io/chain/12/producers

How will Block Producers get paid?

Each year, EOS will have 5% inflation.

Given a starting total of 1,000,000,000 tokens, this means that in the first year an additional 50,000,000 tokens will be created.

4% (40,000,000) will go towards a savings fund to be allocated to workers via a proposal system.

1% (10,000,000) will go to block producers and standby block producers.

Out of the 1% that are given to block producers, only 0.25% will go to the actual 21 producers of the blocks. In the first year, this will be 2,500,000. How many each BP gets will be determined by how many blocks they produce.

The other 0.75% (7,500,000) will be shared amongst all block producers and standby block producers – based on how many votes they receive.

How much will they get paid?

Actual block producers:

Providing each block producer produces equal numbers of blocks, they will earn 2,500,000/21 = 119,047 EOS tokens per year (at a price of US$15 each, this is around $1,785,000 per block producer just for their “block rewards” component).

All block producers (including standby):

If there are 200 block producers in total (21 producers and 179 standby producers) then the remaining 7,500,000 tokens will be divided up amongst all of them, based on how many votes they receive.

Now, I’m not 100% sure on this next part (please let me know if I’m wrong) but from my understanding, this is how it will work:

Each token has the ability to vote for 30 different BPs. With 1,000,000,000 tokens in existence, this means that there are a total of 30,000,000,000 votes. However, one token cannot be used to vote for the same BP twice. This means that if you only vote for 1 BP, they will only receive 1 vote for each token you stake.

If Block Producer A receives 5% of the total votes, then they will receive 5% of the 0.75% “per vote reward” = 5% x 7,500,000 = 375,000 tokens = US$5,625,000 (given a rate of US$15 per token).

And remember – this is on top of what they’ll receive for actually producing the blocks.

Even if a block producer only receives 0.5% of the votes (meaning they’ll probably only be a “standby” producer) then they will still receive 0.5% x 7,500,000 = 37,500 tokens per year = US$562,500 (at $15 per token)

There is a 100 EOS per day threshold that BPs must meet in order to receive the “per vote reward” tokens. If they’re not making at least 100 EOS per day, they won’t get rewarded at all.

(BTW – This is just my personal opinion, but I think $15 per token is a conservative estimate. The price of EOS could well exceed hundreds or even thousands of dollars per token in the next few years).

As you can see – the incentive to be a block producer is EXTREMELY HIGH! Expect to see some very serious competition in this arena.

What will they do with all that money?

Apart from maintaining the infrastructure required (not cheap) the best block producers will re-invest a lot of their rewards in the EOS community (in fact they’re expected to do this as part of their role).

Each BP has outlined how they will do that – ranging from developer training, education, Dapp development, to startup incubation.

Check out each block producer to find out what they’ll be doing 🙂


How to Vote:

Current voting tallies can be found here: http://eosportal.io/chain/12/producers

And you can see here how close we are to a 15% vote here: https://eosauthority.com/voting

Now you understand the importance of voting – how do you actually go about it?

Well, there are a number of tools being developed by different groups (including block producers themselves).

So far, these are the ones I’ve been able to find:

EOS portal using Scatter:

https://eosportal.io

https://get-scatter.com

EOS voter Desktop app

 https://github.com/greymass/eos-voter

And here are some more options:

Desktop app – https://eosrio.io/simpleos/

Web app – http://portal.eoseoul.io/

Web app – http://vote.liquideos.com/

Web app – http://vote.eosio.sg/

Pomelo mobile app – https://steemit.com/eos/@eosnation/eos-wallet-voting-mobile-app

Offline voting – https://github.com/tokenika/secure-bp-voting

Web app – https://eoswalletpro.com/

Web app – http://vote.libertyblock.io/

By far the safest way to interact with any of the web apps is probably through the Chrome and Firefox plugin called SCATTER, developed by Nathan James. Scatter provides a bridge between the EOS blockchain and EOS applications or websites without you needing to provide your private key directly to the application/website itself (you just provide it to Scatter). This works in a similar way to Metamask.

Proxy Voting:

If you don’t wish to vote yourself, there is a mechanism for allowing a trusted third party to vote for you. I’m still not 100% sure how this will work, but you can do your own research.

Vote decay:

Block.one also wants to ensure that users update their vote often, rather than taking a ‘set it and forget it’ approach. To promote this, they have introduced a year-long decay half-life of a vote’s power. This decay would start one week after a vote is cast. If a user does not re-cast their vote after one week, the strength of that vote will decay. After one year, the vote’s strength would be at 50% of a vote cast recently. If that user recasts their vote, it will immediately jump back up to full strength.

Staking:

When a user chooses to vote, they will have to stake their EOS tokens. When staking, those tokens become locked up; non-transferable and non-exchangeable. For speculative investors, this means that you will not be able to sell your tokens during this period. The lock-up period is 72 hours from the time that a user indicates that they would like to unstake their tokens. Voting won’t cost you any EOS.

Further reading:

I’ve just written another article on who I think you should vote for in the election. Read all about my favorite block producers here: https://trybe.one/who-to-vote-for-in-the-eos-block-producer-candidacy-election/

Disclaimer:

Please do your own research first!

Before voting – it’s probably safer to wait until various tools have been tested and validated by people in the know (such as a trusted block producer)

If you like this article, please share it or consider joining the Trybe Network and creating great quality articles of your own (for which you’ll earn EOS based tokens).

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Comments

  1. Duba

    Great explanation. By reading this article i learned alot about the role of the blockproducers and how to vote on them. Also many questions i had are now clear so a great informative article. Thanks for sharing!

    (3)
  2. Dammy

    Thanks Tom for this article, I just voted yesterday not even knowing the full function of the Block Producer in the whole EOS ecosystem. You’ve shed a lot of light into some areas I never knew. I’ll have to go research each one of the Block Producers in greater detail..

    (0)