The Chinese crypto community has recently shared an internal document from Huobi, one of the EOS block producers. The spreadsheets suggests that there is frequent collusion between BPs, and that the network may be more centralized than many might think.
The 2 allegations by the article are (a) Huobi and many other BPs mutually vote for each other to cement their BP position, and (b) Huobi openly votes for a few bp candidates in exchange for EOS returns.— Maple Leaf Capital (@MapleLeafCap) September 26, 2018
An EOS investor with the Twitter handle MapleLeafCapital brought attention to this issue. Based on evidence from the leaked data table, the main allegations made were that Huobi and other BPs engage in mutual voting to secure their positions and often collude to gain financial rewards.
In allegation 2, Huobi votes for eosiosg11111, cochainworld, and eospaceioeos in exchange for 170, 150, and 50% of the returns respectively, as shown below in the tweet. pic.twitter.com/cO2HEkTqnD— Maple Leaf Capital (@MapleLeafCap) September 26, 2018
…with an additional point, currently at least 12 of the top 21 BPs are effectively controlled by China. This in my opinion could increasingly compromise the integrity of the network.— Maple Leaf Capital (@MapleLeafCap) September 26, 2018
The idea that EOS's proof-of-stake voting system can lead to this kind of centralization has been one of the major problems for the project, and the crypto token's value fell significantly in the wake of the BP election process being criticized shortly after the mainnet launch.
Ethereum co-founder Vitalik Buterin was one of the main critics of the system's over-reliance on trust, and he responded to these new allegations by claiming that this was the situation he predicted, although he didn't expect it to happen so fast.