EOS Ecosystem Approves New Tokenomics Model, Promising a “New Era” for EOS Token Holders and Developers

The EOS ecosystem has reached a consensus to approve a new tokenomics model, promising a “new era” for EOS tokenholders and developers.

EOS holders and developers are set for a “new era” as the EOS ecosystem reaches a consensus to approve a new tokenomics model. Here are the key takeaways:

EOS will shift from an inflationary token supply, which could reach a maximum of 10 billion EOS tokens, to a fixed supply of 2.1 billion tokens, as announced on May 31. This move is intended to curb inflation, according to the EOS Network Foundation (ENF).

Moreover, EOS' Fully Diluted Value (FDV) has been reduced by 80%, and four-year halving cycles have been implemented. Another change includes the addition of "high-yield staking rewards" with lockup, though the yields are not specified.

The RAM Market, where users and developers can purchase RAM (Random Access Memory) to deploy and run applications on the network, will receive 350 million EOS tokens from the EOS Foundation.

The announcement was met with skepticism and distrust from the cryptocurrency community on X.

Pseudonymous user Xalytics commented on X: "I've been holding EOS since the ICO in 2017. I'm really confused. What am I supposed to do with this RAM news?"

The EOS token currently trades at $0.80, showing no significant change over the past 24 hours, in response to the announcement. The cryptocurrency has declined by 21.6% since its launch, according to CoinMarketCap.

Largest Initial Coin Offering

The EOS ecosystem reportedly launched the largest initial coin offering (ICO) in the history of the cryptocurrency market. Block.one, the company that created EOS at the time, managed to raise a staggering $4.1 billion in 2018. What followed was legal trouble, clashes with regulators, and a failure to meet ICO expectations.

Block.one settled with the U.S. Securities and Exchange Commission (SEC) in 2019, agreeing to pay a fine of $24 million for conducting an unregistered securities offering during its initial coin offering (ICO).

Another legal issue stemming from the ICO was a class-action lawsuit filed by the Crypto Assets Opportunity Fund. The lawsuit accused Block.one of making several misrepresentations during its ICO, including a claim that it would invest an additional $1 billion in the EOS network. Block.one settled the lawsuit for $27.5 million in 2021.

EOS Network

The EOS community launched its foundation in 2021, aiming to reclaim authority from Block.one, which was seen as not meeting expectations. Yves La Rose, an original block producer, joined the foundation as its founder and CEO.

According to La Rose, the new tokenomics mark "a pivotal moment for the EOS community." He added:

"This strategic overhaul will not only stabilize the token economy but also incentivize active participation and growth within the network."

EOS is a layer-1 blockchain designed to enable decentralized applications. During its early days, the network positioned itself as a competitor to Ethereum.