EOS was published by software publisher Block.one and development is led by CTO Dan Larimer, who founded Steem ($STEEM) and BitShares ($BTS). The project competes with other popular smart contract platforms such as Ethereum ($ETH), NEO ($NEO), and Cardano ($ADA). EOS tries to differentiate itself by providing transaction throughput capable of handling thousands of transactions per second without having to pay direct fees, improved usability for all parties involved, and governance for business and chain maintenance.
EOS makes use of on-chain governance whereby token holders can vote for the block producers (BPs) as well as various upgrades to the protocol, monetary policy, or stakeholder bylaws. The EOS User Agreement defines and enforces the user bylaws. The rules are not enforceable at the protocol level but rather act as a terms-of-service agreement that users must agree to. This community developed agreement replaced Block.one’s Constitution by a majority BP vote back in April 2019.
Ecosystem funds play an important role in the growth and adoption of EOS. Their mandate is to make strategic investments that increase the value of the projects and tokens to ensure the necessary infrastructure is built and proper incentivization exists to attract developers to build on the platform. The most prominent is a $325 million fund ran by Mike Novogratz called Galaxy Digital EOS VC.