How to buy and claim EOS tokens

In a similar vein to my iota purchasing tutorial, today we’ll be walking through a purchase of EOS.

EOS is being touted as the Ethereum killer.  It aims to solve a number of Ethereum’s scalability problems, as well as a number of other oddities associated with Ethereum that we won’t go into in this post.  One of the members of EOS is Dan Larimer, creator of Bitshares and Steemit, which boast two of, arguably, the fastest block chains.  The crowd sale opened in June of this year, and I knew about it but I didn’t invest.  This is because block.one (the company building the EOS network) is very clear that when you’re purchasing EOS tokens you’re effectively receiving nothing.  Yeah, you read that right, nothing.

willywonka

The way the crowd sale is structured, you’re investing in block.one the company, and they’re building the EOS network, but you have no guarantee of return on investment, or utility of the tokens on the network.  Effectively, block.one can take all of this crowd sale money and go to the Cayman Islands with it and there’s nothing legally anyone can do about it.  It may seem odd that I’m investing in something like this, and as I said, it’s taken me 5 months to talk myself into it.  But, as Dan put it in an interview, he’s already independently wealthy via steemit and bitshares, and doesn’t really need the money.  I also believe block.one is covering their asses for the Howey Test that the SEC uses to decide whether an asset is a security or not.  I believe a lot of the language they’re using is an attempt to circumvent the Howey Test.  Also, they recently released their test net, so they’re building something, which is more than you can say for a lot of ICOs right now.  Finally, I made an alright profit from the recent Bitcoin price rise.  I figure, I can gamble a bit with money that is the market’s and not mine.

I ended up using the crowd sale smart contract to make the purchase, but if I had to do it over again I would probably just buy the tokens on an exchange and register my EOS public key via the smart contract.  There’s already enough complexity going on here, and I think the crowd sale smart contract adds to this complexity for beginners unnecessarily. However, I wasn’t sure how block.one was tracking the Ethereum EOS tokens, or whether exchange tokens would be treated differently.  Anyway, here’s a quick overview of what we’ll be doing and why.

Oh, also, this was the first time I’ve actually been effected by the cryptokitties

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Overview

We’ll be taking ether from your wallet, and sending it to the EOS smart contract, which has a payout every day, based on the amount of ether that’s been paid into the contract on that day (part 1 of this tutorial).  Once the period is up, you can retrieve your tokens from the smart contract (part 2 of this tutorial).  Finally, before the entire crowd sale ends on June 1, 2018, you must generate your EOS public and private key pairing and map your Ethereum wallet address to this EOS public address (part 3 of this tutorial).

What’s essentially happening here is, EOS wants your capital, but they don’t have a network yet with which to receive said capital, so the most effective way of them getting that capital is through the Ethereum network (Ethereum did a similar raise on the Bitcoin network when they started).  However, they still need a way to map your investment to you so they can pay you your EOS tokens on the EOS network when the crowd sale ends.

1. Buy Ethereum based EOS tokens

First send ether from your wallet to the EOS smart contract.

mew-send.png

  1. Go to the EOS website eos.io.
  2. Scroll down and click GET EOS.  Note that US residents will have to use a VPN as the crowd sale blocks US IP addresses (see the Cayman Island and using an exchange comments in the introduction).
  3. Review the conditions, check all the boxes if you agree and click Continue.
  4. Copy the crowd sale smart contract address for the token distribution.
  5. Go to MyEtherWallet and click Send Ether & Tokens from the main menu. After unlocking your wallet put the copied crowd sale address from step 4 in the “To Address” field and a desired amount you’re investing in the “Amount to Send” field.  Press Generate Transaction and submit.

NOTE: one thing I’ve found from readers of this step is that there is a minimum of ETH that must be sent to the smart contract otherwise the transaction will fail.  That minimum is .01 ETH.

2. Claim the tokens you’ve paid for

Using eosscan.io you can see the current rate of ETH/EOS for this crowd sale round.  You can also see when the current crowd sale period ends.  At which point you’ll be able to claim your EOS Ethereum tokens.

mew-claim.png

  1. Go to MyEtherWallet and click Contracts from the top menu.
  2. Select EOS - Contribution from Select Existing Contract drop down. The address you’ve previously sent ETH to will appear. Click Access.
  3. Select claimAll from the Select a function drop down at the bottom.
  4. Unlock your wallet and press Write.*
  5. In the modal, leave the amount at 0 and set the appropriate gas limit.

*I had problems with the claimAll function running out of gas (DAMN YOU CRYPTOKITTIES!).  You can also select claim and enter the day you purchased in the smart contract (in my case it was 172).  From here it’s the same steps.

To see if your claimed tokens are in your wallet, add the EOS custom token:

  1. Go to MyEtherWallet and click Send Ether & Tokens from the main menu (you won’t send anything this time).
  2. Look for Token Balances on the right-hand side of the page.
  3. Click Add Custom Token. For the field named Token address, enter 0x86fa049857e0209aa7d9e616f7eb3b3b78ecfdb0. For Token Symbol enter EOS and for Decimals enter 18. Click Save.
  4. After your claim is processed, you will see your EOS token balance by choosing View Wallet Info from the main menu.

3. Register to claim native EOS tokens after the sale ends

The steps here are the same as for claiming the Ethereum tokens except before going to MyEtherWallet you need to generate the keys that will be used on the future EOS platform.

Make sure you claim the native tokens before June 1, 2018 at 22:59:59 UTC.

“Within 48 hours after the end of the final period on June 1, 2018 at 22:59:59 UTC, all EOS Tokens will become fixed (ie. frozen) and will be non-transferrable on the Ethereum blockchain.”

mew-register.png

  1. First, you’ll need an EOS key generator. The good news is that @nadejde has one.
  2. Go to MyEtherWallet and click Contracts from the top menu.
  3. Select EOS - Contribution from Select Existing Contract drop down as before.
  4. Select register from the Select a function drop down at the bottom rather than claimAll.
  5. Put your PUBLIC EOS key to the key field.
  6. Unlock your wallet and press Write button.
  7. In the modal, leave the amount at 0 and set the appropriate gas limit.

You can ensure that the mapping from your Ethereum public address to the EOS public address is correct by following these steps:

  1. Go to MyEtherWallet and click Contracts from the top menu.
  2. Select EOS - Contribution from Select Existing Contract drop down. The EOS smart contract address will appear. Click Access.
  3. Select keys from the Select a function drop down at the bottom.
  4. Put your Ethereum address in the address field.
  5. Click Read.
  6. In the string field, you should see the EOS public key you input above, if not, something went wrong.

Conclusion

Again, DO NOT FORGET TO REGISTER YOUR EOS PUBLIC KEY TO YOUR ETHEREUM WALLET ADDRESS! The Ethereum address will be useless in the EOS ecosystem when the crowd sale ends, and the only way block.one will know where to send the EOS tokens is because they’ve been registered in the EOS crowd sale smart contract.

As usual, if anyone has any questions, don’t hesitate to get in touch!

twitter:@sjkelleyjr instagram:@sjkelleyjr email: jackson@sjkelleyjr.com

I may have some good news coming up pretty soon, so stay tuned! Until next time.

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