EOS Network Foundation Reveals Major Tokenomics Transformation

As a seasoned crypto investor with experience in following the EOS blockchain closely, I’m excited about the recent announcements made by the EOS Network Foundation regarding its proposed tokenomics transformation. The shift towards a fixed supply model and strategic management of EOS RAM is an encouraging sign for the long-term stability and growth potential of the EOS ecosystem.

The EOS Network Foundation, which manages the open-source blockchain platform, has unveiled major changes coming to the EOS blockchain. These modifications will be implemented via proposed adjustments to its token economics, detailed in the latest version (v3.4.0) of the EOS System Contracts release.

Based on the initial article in a two-part exploration, these modifications aim to secure and expand the EOS token market by adopting a finite supply system. The adjustments consist of setting a limit of 2.1 billion EOS tokens as the total supply, thereby terminating the prior inflationary model. Furthermore, this update introduces token distribution plans for network caretakers, encompassing EOS Block Producers, Staking Rewards, the EOS Network Foundation (ENF), and EOS Labs.

According to the EOS Network Foundation, the publication of the EOS System Contracts v3.4.0 signifies a pivotal point for the EOS blockchain as it brings fundamental shifts to its economic model.

Strategic Management of EOS RAM

An essential aspect of the revised token economics involves skillfully managing EOS Random Access Memory (RAM). If a multi-signature (MSIG) proposal garners consent from at least 15 out of the 21 EOS block producers, then 315 million EOS will be distributed for market making and liquidity enhancement on both centralized and decentralized trading platforms. Furthermore, an allocation of 35 million EOS will go towards acquiring RAM from the system Bancor pool to bolster initiatives within the EOS ecosystem.

As a researcher studying the upcoming tokenomics update, I would describe the process of obtaining the required RAM allocations as follows: The necessary RAM allotments will be secured through a series of transactions, each with distinct values, taking place between the approval of the new tokenomic rules and the scheduled Spring 1.0 hard fork in July.

The recently acquired RAM will be employed to back EOS ecosystem projects, as outlined by the EOS Network Foundation. Furthermore, specialist market makers intend to procure RAM to create wrapped RAM (WRAM) liquidity on multiple exchanges. This action aims to boost the market’s depth and convenience for trading EOS RAM.

Approval of the MSIG will result in a commitment of 15 million EOS towards financing initiatives that enhance middleware on the EOS Network, thereby improving its overall user experience.

These changes to the tokenomics pave the way for future improvements to REX. Among these enhancements are the addition of EOS staking rewards, as well as a more adaptable distribution mechanism for system fees.

Looking Ahead

By the close of June, the EOS foundation anticipates the initiation of staking rewards for EOS tokens as part of the rollout of REX 2.0. In the subsequent segment of this discourse, we will delve into the proposed transition to REX 2.0, a change expected to usher in lucrative staking incentives for EOS token owners.

Let’s explore the shift towards REX 2.0, which is expected to introduce significant improvements such as rerouting system fees to Block Producers, merging staking rewards into REX, and elongating the staking duration to last for 21 days.

As an analyst, I would put it this way: The next step hinges on the effective execution of the modifications initiated in the initial MSIG.

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2024-05-29 14:04