Originally published on steemit.com on 3 August 2017.

Hello everyone, I’ve just stumbled upon this video on youtube and was wondering what your thoughts are?

Hey Everyone, (writes Brendan Blumer),

I just watched this video; I wanted to get to it earlier but I haven’t had time in the last few days.

A couple things:

The existing EOS ERC-20 token creates a distribution list that the public can use to launch and distribute an EOS.IO-based blockchain and community; it does not warrant or promise anything. It shows provable contribution for each token.

The product is the broad, provable, equitable distribution. Anyone can replicate any public blockchain in a few hours. The quality of the community and companies that adopt the chain is what determines network value.

At the end of the distribution, the first live version of the software will be published with an open source license. At the moment there is hundreds of millions-worth of vested interest in this distribution list, and it continues to grow daily, we expect the public to do great things with it.

ETH and BTC are collectively by far the majority of resources today; they are in fact the largest continuous “ICO”. They use the 4–5 billion they collect annually to burn more electricity than small countries; this is used to process less than 25 transactions per second in aggregate. This is costing token holders more than 6 USD per transaction before additional fees. We firmly believe that the industry cannot continue to grow if the resources given to us continue to be nearly completely wasted; block.one and EOS.IO software is changing this.

The EOS virtual mining token sale recaptures value where others have burnt it, while preserving the proven effective distribution economics of PoW. In EOS the 4–5 billion of burnt capital would be budgeted by token holders in any way they felt created the most network value.

Block.one will be announcing some of its first investments into the EOS ecosystem very soon and we will begin to feel the first effects of more efficient capital deployment. We’re working 24/7 and delivering information as fast possible.

Block.one is finalizing an engagement with a third party auditor to release a public audit designed to provide comfort that block.one has not participated in the EOS tokens sale in anyway, with any funds.

Block.one has already sold the majority of the ETH taken in from the ERC-20 token sale and will not be stockpiling the ETH it is raising from the sale. It’s important to remember that order books are a zero sum game and for all the sell demand created when block.one sells ETH, equivalent ETH buy demand was created through our token sale. Therefore, the general decline of the ETH network isn’t related to our token sale.

EOS is a true Decentralized Network that has 100% alignment of interests between beneficiaries and decisions makers; once the blockchain is launched, it has no dependency on any one company, foundation, or individual.

We understand the block.one token sale is a new structure; our internal and external counsel worked hard on structuring it in a way that made the network truly independent and and compliant on all fronts. Our lawyers were in communication with the SEC prior to issuing formal opinions. We chose to exclude the USA only because of local regulation that exists in places like NYC and Washington, not because of any concerns over the security status of the EOS ERC-20 token.

We appreciate the healthy skepticism and will always do our best to clarify misunderstandings. EOS is comprised of a robust community and backed by many of the the biggest influencers in the space — this is something we don’t take for granted and would never compromise!

Brendan Blumer, CEO block.one