Network Foundation (ENF), the entity entrusted by the EOS community with the development of its core blockchain software, has approved a new tokenomics model to enhance the economic potential of the EOS ecosystem.
The proposal received a supermajority consensus from EOS network block producers and will be implemented on June 1, according to a press release.
Key features of the new model include a transition from an inflationary token supply with a hard cap of 10 billion to a fixed supply of 2.1 billion tokens. This should help eliminate inflation and establish a more predictable economic environment.
Additionally, the fully diluted value (FDV) of EOS will be reduced by 80%, which is expected to improve long-term value for EOS holders.
The model also introduces four-year halving cycles to control the release of new tokens to the market. The funds will be allocated to support middleware operations, focusing on improving the usability of EOS to bridge the gap between web2 and web3 experiences.
An allocation of 350 million EOS will be set aside to support the RAM market, ensuring ample supply and liquidity provision. The RAM market is currently capped at $300 million.
Additionally, high-performance staking rewards and adjustments to the staking lock-in period will be introduced to incentivize long-term engagement and active participation in the network.
Yves La Rose, founder and CEO of the EOS Network Foundation, said the new tokenomics model represents an important milestone for the EOS community. He believes the changes will stabilize the token economy and promote active participation and growth within the network.
“The new model effectively aligns the interests of various actors within the EOS ecosystem. By introducing protocol-level performance and establishing a network treasury, we are creating a framework where incentives are designed to support positive long-term growth,” La Rose told Investing. .com.
“This new structure encourages stakeholders to lock their EOS, contributing to network stability and fostering a collaborative environment aimed at driving innovation and prosperity for the entire community.”
Established in 2021, the EOS Network Foundation supports an open technology environment through stakeholder engagement, community programs, and ecosystem funding. EOS Network is a third-generation blockchain platform powered by EOS VM to enable near-free transactions and support Web3 applications.
In 2022, EOS, Telos, WAX, and UX Network joined forces to take control of the development of the core code of the EOSIO protocol, which underpins each of these blockchains. As part of this alliance, the coalition is now leading the development of the community-run blockchain protocol known as Antelope.
