The EOS community, in a significant move, has approved a proposal to reduce by burning nearly 80% of the current $EOS supply.
The proposal, which included several key changes to EOS’s current tokenomics, will reduce the current supply of 10 billion $EOS to just 2.1 billion in a bid to rekindle interest in the EOS ecosystem.
Some of the changes made to the tokenomics include turning off the network’s inflation mechanisms. This move is designed to stabilise the value of $EOS by preventing the dilution of token value through continuous inflation. Four-year halving cycles will also be introduced to help manage the supply and reduce the number of new tokens minted over time.
Another crucial aspect of the new tokenomics is capping the supply at 2.1 billion $EOS tokens. This fixed supply limit is intended to provide certainty and predictability for investors and developers, fostering a more stable economic environment.
The proposal also outlined the minting of approximately 950 million $EOS tokens, which will be used for staking rewards tied to lockup periods. This incentivizes long-term holding and participation in network governance, contributing to the stability and security of the ecosystem.
The EOS Network Foundation took control of the project from Block One in 2021 amid controversies. Block One was criticised for allegedly failing to reinvest substantial portions of its $4 billion ICO proceeds into the EOS ecosystem. Interest in the ecosystem has waned since it raised $4 billion during the initial coin offering (ICO) period of 2017-2018.
Since taking over, the Foundation has aimed to steer the project in a direction more aligned with community interests and long-term sustainability.
According to Yves La Rose, CEO of the EOS Network Foundation (ENF), the successful approval of the proposal by the community marks a “new era” for the ecosystem.
TO LEARN MORE ABOUT TOKEN BURNING, READ THIS: Reducing Supply, Increasing Value: The Magic of Crypto Token Burning
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