New EOS Tokenomics Model Set to Enhance Ecosystem Value

Introduction of a New Tokenomics Model

The EOS Network Foundation (ENF), responsible for advancing the core blockchain software of the EOS community, has approved an innovative tokenomics model to elevate the economic potential of the EOS ecosystem. This significant change, backed by a super majority of EOS Network block producers, is slated for deployment on June 1.

Transition to a Fixed Token Supply

A pivotal aspect of the new model is the shift from an inflationary token supply with a maximum cap of 10 billion to a fixed supply of 2.1 billion tokens. This adjustment aims to eliminate inflation and create a more predictable economic framework. Additionally, the Fully Diluted Value (FDV) of EOS will see an 80% reduction, potentially enhancing long-term value for holders.

Strategic Changes and Support Mechanisms

The model introduces four-year halving cycles to regulate the inflow of new tokens into the market. Aimed at bridging web2 and web3 experiences, funding will focus on middleware operations to improve usability. Moreover, a reserve of 350 million EOS will be allocated to bolster the RAM market, ensuring sufficient supply and liquidity.

Incentives for Active Participation

High-yield staking rewards and modifications to the staking lockup period are incorporated to promote long-term commitment and active network participation. This approach is anticipated to stabilize the token economy and drive growth within the EOS community.

Alignment of Interests and Network Development

The new tokenomics model represents a significant milestone for the EOS community, aligning the interests of diverse ecosystem actors. By integrating protocol-level yield and establishing a network treasury, the framework encourages stakeholders to lock up their EOS, fostering stability and innovation.

EOS Network Foundation's Role

Founded in 2021, the EOS Network Foundation supports an open technology environment through community engagement, programs, and ecosystem funding. The EOS Network, a third-generation blockchain platform, employs the EOS VM to facilitate nearly feeless transactions and support Web3 applications. In 2022, EOS, alongside Telos, WAX, and UX Network, took charge of developing the EOSIO protocol core code, now known as Antelope, cementing their role in the community-operated blockchain protocol.