EOS is shifting to a fixed supply of 2.1 billion tokens and introducing halving cycles amid ongoing community skepticism and past regulatory challenges.
The EOS ecosystem has reached a consensus to adopt a new tokenomics model, heralding what it calls a “new era” for EOS tokenholders and developers.
According to a May 31 announcement, EOS will move from an inflationary token supply, which had a maximum of 10 billion EOS tokens, to a fixed supply of 2.1 billion tokens. The EOS Network Foundation (ENF) believes this change will help control inflation.
Additionally, EOS’s Fully Diluted Value (FDV) has been reduced by 80%, and the network will implement four-year halving cycles. Another significant change is the introduction of “high-yield staking rewards” with a lockup period, although specific yield rates have not been disclosed.
The EOS Foundation will also allocate 350 million EOS tokens to its RAM Market, where developers and users can purchase RAM (Random Access Memory) to deploy and run applications on the network.
Despite these changes, the announcement has been met with skepticism within the crypto community. A user with the pseudonym Xalytics expressed confusion on social media platform X, saying, “I am holding EOS from ICO in 2017. I am really lost about what I am supposed to do with this RAM news.”
Following the news, the EOS token is trading at $0.80, remaining virtually unchanged over the past 24 hours. According to CoinMarketCap, the token has declined by 21.6% since its initial launch.
The EOS ecosystem was behind the largest initial coin offering (ICO) in the crypto industry. Block.one, the company originally behind EOS, raised a staggering $4.1 billion in 2018. However, the project subsequently faced numerous challenges, including failing to meet ICO expectations, legal battles, and regulatory issues.
Summary Review: The approval of a new tokenomics model marks a significant shift for the EOS network, aiming to stabilize its token supply and introduce incentives for stakeholders. While the community’s response has been mixed, with some expressing doubts about the changes, the EOS Network Foundation is pushing forward with its vision for a more sustainable and attractive ecosystem. The success of these changes will be closely watched by both current tokenholders and the broader crypto community as EOS seeks to overcome past challenges and rebuild its reputation in the market.
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