The EOS ecosystem has come to a consensus to approve a fresh tokenomics model, promising a “new era” for EOS tokenholders and developers.
In a statement on May 31, it was announced that EOS would transition from an inflationary token supply with a maximum of 10 billion EOS tokens to a fixed supply of 2.1 billion tokens. The EOS Network Foundation (ENF) stated that this move would help control inflation.
Furthermore, EOS’ fully Diluted Value (FDV) has been reduced by 80%, and four-year halving cycles have been implemented. Another change is the introduction of “high-yield staking rewards” with lockup, although specific yields have not been disclosed.
The EOS Foundation will allocate 350 million EOS tokens for its RAM Market, where developers and users can purchase RAM (Random Access Memory) to deploy and run applications on the network.
Upon its announcement, the news received skepticism and doubts from the crypto community. A pseudonymous user named Xalytics expressed confusion on an online platform, stating, “I am holding EOS from ICO in 2017. I am really lost about what I am supposed to do with this RAM news?”
In response to this development, the value of the EOS token currently stands at $0.80, showing little change over the past 24 hours. According to CoinMarketCap, the token has experienced a decline of 21.6% since its initial launch.
The EOS ecosystem was responsible for the largest initial coin offering (ICO) in the cryptocurrency industry. In 2018, Block.one, the company behind EOS at the time, raised a staggering $4.1 billion. However, what followed was a failure to meet ICO expectations, legal battles, and regulatory challenges.
In 2019, Block.one reached a settlement with the U.S. Securities and Exchange Commission (SEC), which resulted in a $24 million penalty for conducting an unregistered securities offering during its ICO.
Another legal dispute arising from the ICO was a class-action lawsuit initiated by the Crypto Assets Opportunity Fund. The lawsuit accused Block.one of various misrepresentations during its ICO, including a false promise to invest an additional $1 billion in the EOS network. In 2021, Block.one settled the lawsuit for $27.5 million.
In an effort to regain control from Block.one, which was seen as failing to fulfill its promises, the EOS community established its own foundation in 2021. Yves La Rose, an original block producer, took on the role of foundation founder and CEO.
According to La Rose, the new tokenomics model represents a significant milestone for the EOS community. He stated, “EOS is a layer-1 blockchain designed to support decentralized applications. The network initially positioned itself as an ‘Ethereum killer’.”
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