The Network Foundation (ENF), the entity entrusted by the EOS community to develop its core blockchain software, has endorsed a recent tokenomics model to improve the economic potential of the EOS ecosystem.
According to the press release, the proposal has achieved majority consensus among EOS Network block producers and is scheduled to be implemented on June 1.
Key features of the recent model include moving from an inflationary token supply with a maximum cap of 10 billion to a fixed supply of 2.1 billion tokens. This should facilitate eliminate inflation and create a more predictable economic environment.
Moreover, the fully diluted value (FDV) of EOS will be reduced by 80%, which is expected to boost the long-term value for EOS holders.
The model also introduces four-year halving cycles to control the release of recent tokens to the market. The funds will be used to support middleware operations, focusing on improving the usability of EOS to bridge the gap between web2 and web3 experiences.
An allocation of EOS 350 million will be used to support the RAM market, ensuring sufficient supply and liquidity. The RAM market currently has a cap of $300 million.
Additionally, high-yield staking rewards and staking lock-in changes will be introduced to encourage long-term engagement and energetic participation on the network.
Yves La Rose, founder and CEO of the EOS Network Foundation, said the recent tokenomics model represents a significant milestone for the EOS community. He believes that the changes will stabilize the token economy and promote energetic participation and development on the network.
“The new model effectively combines the interests of various entities in the EOS ecosystem. By introducing profit at the protocol level and establishing a network treasury, we are creating a framework in which incentives are designed to support positive long-term growth,” La Rose told Investing .com.
“This new structure encourages stakeholders to lock down their EOS, contributing to network stability and supporting a collaborative environment aimed at driving innovation and prosperity for the entire community.”
Founded in 2021, the EOS Network Foundation supports the open technology environment through stakeholder engagement, community programs and ecosystem financing. The EOS Network is a third-generation blockchain platform powered by the EOS Virtual Machine that enables near-seamless transactions and supports Web3 applications.
In 2022, EOS, Telos, WAX and UX Network joined forces to take control of the development of the EOSIO protocol core code that powers each of these blockchains. As part of this alliance, the coalition is currently leading the development of a community-led blockchain protocol known as Antelope.
