As you already know, recently we’ve won the first and the second place in Equilibrium 30 best block producers contest. We are really proud of this because that proves once again that we have quite strong and supportive community.
As a result, this contest allowed us to receive a vote from Equilibrium Proxy which gave us 2.5mln votes for our block producer (BP) candidate. We know that a lot of you haven’t heard about EOS proxy, so here’s a quick guide on what it is and why it plays such an important tool in the EOS blockchain.
In EOS blockchain, proxy is an account that participates in governance using voting power from another EOS account(s). The primary reason why proxies were created is to have a simple and secure tool for stakeholders who are not eager to research and compare hundreds of block producers because of a lack of incentive. A lot of holders, especially with a smaller stake, simply don’t have time to monitor and follow BPs but they still want to play a major role in the ecosystem. In this case, proxy voting is an excellent solution for them.
The other way of looking into a proxy is as lended trust. Essentially, when you set somebody as a proxy, you lend them your decision making ability on the EOS blockchain. It means that you trust this proxy to make choices on your behalf. That’s why it’s important to know who are you picking because it may affect the network directly, especially if you stake lots of EOS.
The best part about such mechanism is that it is fully transparent and happens on-chain. This allows individuals to look through the voting history and be fully accountable for their choices. Moreover, this process doesn’t expose your private keys which is an extremely important when you delegate somebody such an important role.
Here’s a list of decisions that each proxy possess:
- voting for block producers;
- voting for governance changes;
- voting for proxies;
- voting for referendums;
- other voting initiatives.
Hopefully, this gave you a brief understanding on why proxies are important and why they exist. If you have any further questions, let us know in our telegram group.
