EOS Network Approves Tokenomics Proposal, Ushering in a New Era for EOS
The EOS Network Foundation (ENF) is thrilled to announce EOS Network’s approval of a transformative new tokenomics model designed to enhance the economic potential of the EOS ecosystem, marking a ‘New Era’ for EOS.
The proposal for the new tokenomics model was approved by EOS Network block producers after reaching a super majority consensus. The new system contracts will deploy to the EOS mainnet on June 1 upon time delayed execution of the multisig (MSIG) proposal. The new tokenomics model introduces several key features aimed at promoting long-term growth and stability:
Fixed Token Supply: EOS will transition from an inflationary token supply with a 10 billion maximum supply to a fixed supply of 2.1 billion tokens, eliminating inflation and establishing a more predictable economic environment.
Fully Diluted Value Reduction: The Fully Diluted Value (FDV) of EOS has been reduced by 80%, reflecting the new tokenomics structure and enhancing the long-term value proposition for EOS holders.
Halving Cycles: The implementation of four-year halving cycles will moderate the influx of tokens into the market, ensuring a controlled release.
Middleware Operations: An immediate allocation of funding will support middleware operations, with a specific focus on enhancing the usability of EOS to bridge the gap between web2 and web3 experiences.
RAM Market Allocation: A substantial allocation of 350 million EOS is earmarked for RAM market enhancement. This includes purchasing EOS RAM to ensure sufficient supply and liquidity provisioning to grow and increase accessibility to the RAM market. The RAM market cap currently stands at a $300 million market cap at the time of writing.
Staking Rewards: The introduction of high-yield staking rewards, along with adjustments to the staking lockup period, is designed to incentivize long-term commitment and active participation in the network.
Yves La Rose, Founder and CEO of the EOS Network Foundation, commented, “This new tokenomics model represents a landmark occasion 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.”
The ENF remains 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.
EOS Tokenomics Resources:
- A New Era in EOS Tokenomics, Part I: Unlocking Economic Potential
- Discussing the New Tokenomics Proposal: Monthly Block Producer Meeting—April 2024
EOS Network
The EOS Network is a 3rd generation blockchain platform powered by the EOS VM, a low-latency, highly performant, and extensible WebAssembly engine for deterministic execution of near feeless transactions; purpose-built for enabling optimal Web3 user and developer experiences.
EOS Network Foundation
The EOS Network Foundation (ENF) was forged through a vision for a prosperous and decentralized future. Through our key stakeholder engagement, community programs, ecosystem funding, and support of an open technology ecosystem, the ENF is transforming Web3. Founded in 2021, the ENF is the hub for EOS Network, a leading open source platform with a suite of stable frameworks, tools, and libraries for blockchain deployments. Together, we are bringing innovations that our community builds and are committed to a stronger future for all.
