EOS is transitioning towards a fixed token supply of 2.1 billion and implementing halving cycles, amidst persistent community doubt and historical regulatory hurdles.
The EOS ecosystem has reached a consensus to approve a new tokenomics model, heralding a “new era” for EOS tokenholders and developers.
As per the announcement on May 31, EOS will transition from an inflationary token supply, capped at 10 billion EOS tokens, to a fixed supply of 2.1 billion tokens. This move, according to the EOS Network Foundation (ENF), aims to curb inflation.
Furthermore, EOS’ Fully Diluted Value (FDV) has been slashed by 80%, and four-year halving cycles have been introduced. Additionally, “high-yield staking rewards” with lockup have been added, though specific yields were not disclosed.
The EOS Foundation has earmarked 350 million EOS tokens for its RAM Market, where developers and users can acquire RAM (Random Access Memory) to deploy and operate applications on the network.
However, the announcement was met with skepticism and doubts from some members of the crypto community. A pseudonymous user on a platform expressed confusion, stating, “I am holding EOS from ICO in 2017. I am really lost with this RAM news.”
In response to the news, the EOS token is currently trading at $0.80, showing minimal change over the last 24 hours. According to CoinMarketCap, the token has seen a decline of 21.6% since its initial launch.
The EOS ecosystem made headlines with its record-breaking initial coin offering (ICO) in the crypto industry. Block.one, the company behind EOS at the time, raised a staggering $4.1 billion in 2018. However, subsequent challenges including failing to meet ICO expectations, legal battles, and regulatory hurdles followed.
In 2019, Block.one resolved its legal dispute with the U.S. Securities and Exchange Commission (SEC), agreeing to pay a $24 million fine for conducting an unregistered securities offering in its ICO.
In 2021, Block.one faced a class-action lawsuit from the Crypto Assets Opportunity Fund over alleged misrepresentations during its ICO, including a misleading commitment to invest an additional $1 billion in the EOS network. Block.one settled the suit for $27.5 million. Subsequently, in an effort to regain control from Block.one, the EOS community established its foundation, led by Yves La Rose, an original block producer, who assumed the role of founder and CEO. La Rose described the revised tokenomics as a significant milestone for the EOS community.
EOS, a layer-1 blockchain, is tailored to facilitate decentralized applications. Initially, it positioned itself as a rival to Ethereum.
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