The EOS Network Foundation (ENF) has made a groundbreaking announcement regarding the approval of an innovative tokenomics model for the EOS Network. This approval signifies the beginning of a transformative era for the ecosystem. After achieving a supermajority consensus, the EOS Network block producers have given their approval to this new tokenomics proposal. The proposal is set to be implemented on the EOS mainnet on June 1, following a time-delayed execution of the multisig (MSIG) proposal.
The #EOS Network Block Producers have achieved a supermajority consensus to approve the new tokenomics model proposal! Once the MSIG is executed on June 1, network inflation will be permanently stopped, and the FDV of $EOS will be reduced by 80%! [image]
Key Features of the New Tokenomics Model:
The newly approved tokenomics model introduces several significant changes aimed at enhancing the long-term growth and stability of the EOS ecosystem:
1. Fixed Token Supply:
The EOS token supply will transition from an inflationary model with a maximum supply of 10 billion tokens to a fixed supply of 2.1 billion tokens. This shift eliminates inflation and creates a more predictable economic environment for the network.
2. Fully Diluted Value (FDV) Reduction:
The FDV of EOS will be reduced by 80% to reflect the new tokenomics structure. This reduction is expected to enhance the long-term value proposition for EOS holders.
3. Halving Cycles:
The implementation of four-year halving cycles will moderate the influx of tokens into the market, ensuring a controlled and gradual release.
4. Middleware Operations:
Immediate funding will be allocated to support middleware operations, focusing on improving the usability of EOS and bridging the gap between Web2 and Web3 experiences.
5. RAM Market Allocation:
A substantial allocation of 350 million EOS will be designated for enhancing the RAM market. This includes purchasing EOS RAM to ensure an adequate supply and liquidity, with the aim of growing and increasing accessibility to the RAM market, which currently has a market cap of $300 million.
6. Staking Rewards:
High-yield staking rewards will be introduced, along with adjustments to the staking lockup period, to incentivize long-term commitment and active participation in the network.
Enhancing Stability and Growth:
Yves La Rose, Founder and CEO of the EOS Network Foundation, expressed his excitement about the new tokenomics model, stating, “This new tokenomics model represents a significant milestone for the EOS community. By establishing a fixed token supply and introducing new mechanics, we are ensuring a sustainable and prosperous new era for the EOS ecosystem. This strategic overhaul will not only stabilize the token economy but also incentivize active participation and growth within the network.”
Established in 2021, the EOS Network Foundation is committed to driving innovation and growth within the EOS Network. This tokenomics update is a crucial step in realizing the full potential of the blockchain, paving the way for a robust and dynamic economic environment. The EOS Network, known for its low-latency, high-performance, and extensible WebAssembly engine, continues to be a leading platform for enabling optimal Web3 user and developer experiences.
The approval of the new tokenomics proposal marks a significant milestone for the EOS Network, setting the stage for a new era of growth and stability. With a fixed token supply, reduced FDV, and enhanced staking rewards, the EOS ecosystem is poised to attract long-term commitment and active participation, ensuring its position as a leading blockchain platform in the Web3 space.
