The EOS Network Foundation (ENF) has made an announcement regarding the approval of a groundbreaking new tokenomics model for the EOS Network. This marks the beginning of a transformative era for the ecosystem. The approval of this new tokenomics proposal by the EOS Network block producers, after achieving a supermajority consensus, means that it will be deployed to the EOS mainnet on June 1, following the time-delayed execution of the multisig (MSIG) proposal.
The #EOS Network Block Producers have reached a super majority consensus to approve the new tokenomics model proposal!
Upon time delayed execution of the MSIG on June 1, network inflation will be permanently halted and $EOS FDV will be reduced by 80%! https://t.co/By9UPRL3Tx pic.twitter.com/2yjVqo2M7m
— EOS Network Foundation (@EOSNetworkFDN) May 31, 2024
The newly approved tokenomics model introduces several significant changes aimed at enhancing the long-term growth and stability of the EOS ecosystem. These key features include:
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, with a focus on enhancing the usability of EOS to bridge the gap between Web2 and Web3 experiences.
5. RAM Market Allocation: A significant allocation of 350 million EOS will be designated for RAM market enhancement. This includes purchasing EOS RAM to ensure sufficient supply and liquidity provisioning, aiming to grow and increase accessibility to the RAM market, which currently has a $300 million market cap.
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.
Yves La Rose, Founder and CEO of the EOS Network Foundation, expressed his enthusiasm about the new tokenomics model, stating, “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 EOS Network Foundation, established in 2021, has a vision for a prosperous and decentralized future. Through stakeholder engagement, community programs, ecosystem funding, and support for an open technology ecosystem, the ENF is transforming Web3. As the hub for the EOS Network, the ENF supports a leading open-source platform with stable frameworks, tools, and libraries for blockchain deployments. Together, the ENF and the EOS community are committed to fostering innovation and building a stronger future for all.
The ENF remains dedicated 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 place as a leading blockchain platform in the Web3 space.
