The EOS Network Foundation (ENF) has made a groundbreaking announcement regarding a new tokenomics model for the EOS Network, signaling the beginning of a transformative phase for the ecosystem. This innovative proposal, which received approval from the EOS Network block producers by achieving a supermajority consensus, is scheduled to be implemented on the EOS mainnet on June 1 through the time-delayed execution of the multisig (MSIG) proposal.
The #EOS Network Block Producers have unanimously agreed to the new tokenomics model proposal! After the time-delayed execution of the MSIG on June 1, network inflation will cease permanently, and the $EOS FDV will undergo an 80% reduction!
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:
Fixed Token Supply:
The EOS token supply will shift from an inflationary model with a maximum supply of 10 billion tokens to a fixed supply of 2.1 billion tokens. This change eliminates inflation and creates a more predictable economic environment for the network.
Fully Diluted Value (FDV) Reduction:
The FDV of EOS will see an 80% reduction, reflecting the new tokenomics structure. This reduction is expected to improve the long-term value proposition for EOS holders.
Halving Cycles:
The implementation of four-year halving cycles will regulate the release of tokens into the market, ensuring a controlled and gradual distribution.
Middleware Operations:
Immediate funding allocation will support middleware operations, focusing on improving the usability of EOS to bridge the gap between Web2 and Web3 experiences.
RAM Market Allocation:
350 million EOS is set aside for RAM market enhancement, including the purchase of EOS RAM to ensure sufficient supply and liquidity, with the aim of growing and increasing accessibility to the RAM market, currently valued at $300 million.
Staking Rewards:
High-yield staking rewards will be introduced, along with changes to the staking lockup period, to encourage 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 marks a significant moment for the EOS community. By establishing a fixed token supply and introducing new mechanisms, we are ensuring a sustainable and prosperous future for the EOS ecosystem. This strategic revamp will not only stabilize the token economy but also incentivize active engagement and growth within the network.”
Established in 2021, the EOS Network Foundation aims for a prosperous and decentralized future. Through engaging key stakeholders, community programs, ecosystem funding, and supporting an open technology ecosystem, the ENF is reshaping Web3. As the central hub for the EOS Network, the ENF provides a leading open-source platform with stable frameworks, tools, and libraries for blockchain deployments. Together, the ENF and the EOS community are dedicated to fostering innovation and building a stronger future for all.
The ENF is committed to driving innovation and growth within the EOS Network. This tokenomics update is a crucial step in unlocking 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, remains a top platform for delivering optimal Web3 user and developer experiences.
The approval of the new tokenomics proposal signifies a significant milestone for the EOS Network, ushering in a new era of growth and stability. With a fixed token supply, reduced FDV, and enhanced staking rewards, the EOS ecosystem is positioned to attract long-term commitment and active participation, solidifying its position as a leading blockchain platform in the Web3 landscape.