EOS Proposal to Cap Supply at 2.1B Passed by Community

As a long-term crypto investor with experience in the EOS community, I’m thrilled to see this significant development. The proposed cap on the total supply of EOS tokens and the burning of 80% of the excess supply is an important step towards addressing inflation concerns and potentially increasing the value of remaining tokens. This move has gained broad support from the community, especially from block producers who play a crucial role in network governance.

The EOS community has recently made an important decision: they’ve approved a plan to limit the total circulation supply of their protocol’s native token to 2.1 billion. This development is a turning point for the EOS blockchain, as it sets a definite cap on the number of EOS tokens in existence. By addressing concerns about inflation and an unlimited token supply, this move aims to bring stability to the platform.

80% of the Excess EOS Token Supply after Cap Will Be Burnt

Yves La Rose, CEO of the EOS Network Foundation, suggests eliminating 80% of the current surplus of tokens as per a proposal. Consequently, a significant portion of existing tokens will be taken out of circulation, resulting in a decrease in total supply and possibly boosting the worth of the remaining ones.

The #EOS Network has reached consensus to approve the tokenomics proposal!
❎ Inflation✅ Fixed Token Supply✅ 80% Reduction in FDV✅ 4 yr $EOS Halvings✅ $RAM Market Support
This marks a New Era for $EOS!
— Yves La Rose (@BigBeardSamurai) May 31, 2024

As a crypto investor in EOS, I’m excited to share that a widely supported proposal within our community is gaining momentum. This proposal, which has garnered significant backing, particularly from the block producers who play a crucial role in governing the network, will not be implemented right away. Instead, we can expect the update to go live several months down the line.

Previously, the organization proposed a multi-signature system to generate a specific amount, gaining approval from 15 out of the 21 EOS block producers. Currently, there are 1.15 billion EOS tokens in circulation, representing approximately 54% of the eventual maximum supply.

A few days ago, the open-source blockchain platform unveiled major changes to its EOS blockchain through important updates to its token economics. This transition will be marked by the introduction of token vesting schedules for network caretakers, encompassing EOS Block Producers, Staking Rewards, the EOS Network Foundation (ENF), and EOS Labs.

More Development on the EOS Network

Toward the end of last year, EOS Labs and ENF, who oversee the EOS Network, revealed a strategic alliance with EOS Stablecoin Chain (ESCC), a provider of stablecoins on the Ethereum (ETH) platform. The plan is for these entities to join forces in developing a streamlined system for swift and compliant transactions involving stablecoins.

In collaboration with EOS, ESCC strives to offer a tailored and streamlined approach for handling stablecoin transactions, enhancing their speed, affordability, and regulatory compliance. Furthermore, through this partnership, ESCC introduces regulated and open stablecoin ecosystems that incorporate KYC procedures.

The EOS Network Foundation has been carefully preparing for expansion for some time now. In April 2023, it achieved a significant milestone by obtaining regulatory approval from Japan to trade EOS tokens on authorized cryptocurrency exchanges in the country. This approval was granted by the Japan Virtual and Crypto Asset Exchange Association (JVCEA), the regulatory body overseeing crypto trading safety, signaling an important development for the acceptance of EOS in Japan.

In that very month, EOS Network Ventures (ENV) distributed $20 million to foster developers creating apps and games on their network. Consequently, the DeFi sector of the EOS network experienced significant growth, resulting in a surprising increase in value locked within projects built using EOS.

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2024-05-31 16:09