Block One are not running an ICO (initial coin offering) for EOS, they are supporting a token distribution process...
The development of EOS was already fully funded before the EOS ERC-20 token distribution began.
The EOS token distribution is being run using the Ethereum network buy distributing EOS ERC-20 tokens. Once complete, the EOS ERC-20 tokens will be frozen. Then, once the EOS software has been launched, the EOS tokens will be distributed according to the holdings of EOS ERC-20 tokens at registered Ethereum addresses.
The primary objective of the EOS ERC-20 token distribution is to ensure that when the EOS software is ready, EOS can be distributed as widely and into as many strong hands as possible.
The EOS ERC-20 token distribution runs for 1 year and is also tradable on the open market. The distribution was structured in this way, in part, to enable as many as possible to be able to contribute and at the same time, to make it very expensive for whales to secure out-sized positions. Enabling EOS ERC-20 tokens to trade on the open market during the distribution ensures, form the outset, that the most effective means of establishing fair pricing was available throughout.
The qualities of a token distribution are critical to the success of a blockchain-based network/platform. A broad, diverse and robust distribution improves the stability of the underlying economic model and enables the economic incentives to fall into alignment and/or balance.
The Block One revenue generated from the EOS ERC-20 token distribution process is primarily being used to fund innovation and development for the EOS platform. $1 billion in seed capital from the token distribution has already been made available by Block One for this purpose. By seeding the capital and partnering with VC (venture capitalist) companies, the $1 billion will be further leveraged to build additional funds and a network of expert support for emerging projects and talent that is interested in building for EOS.
As a result of developers and entrepreneurs potentially having access to a new method for funding promising projects, they are no longer put into the potentially risky position of needing to raise capital via an ICO. Instead they can build within a growing community that already has a robust distribution.
Rather than paying billions to burn electricity like Bitcoin & Ethereum, rather than pay billions to process a pitiful number of transactions per year, Block One has instead captured a significant part of the value of a token distribution and are using it to inject massive innovation and development potential energy into the EOS platform. This massive support will hopefully provide enough potential energy to birth a new global economic and social paradigm.
The EOS ERC-20 token distribution will continue until the 1st June 2018.
I hope you find this information helpful and informative.
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