Contents
- EOS Network burns 80% of EOS FDV, introduces halvings
- RAM market and staking rewards upgrade kicking off
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In a bold move, EOS Network agreed to totally reconsider the economic design of its main token, EOS. The upgrades are set to make the asset programmably scarce and more attractive for investors.
EOS Network burns 80% of EOS FDV, introduces halvings
According to the official statement by the EOS Network Foundation, a super majority of EOS block producers approved radical adjustment of EOS’s tokenomics. The new design will come into effect on June 1, 2024, and bring the most profound revamp to the entire ecosystem.
First of all, it was decided to significantly reduce the number of EOS tokens. In total, the EOS supply dropped from 10 billion to 2 billion, bringing an 80% reduction to the fully diluted valuation (FDV) of the asset.
Then, the community of validators agreed to implement four-year halving cycles designed to moderate the influx of tokens into the market, ensuring a controlled release. This step will make EOS tokenomics more predictable and resistant to selling pressure.
To support the progress of the EOS dApps ecosystem, validators decided to allocate support funds for middleware tooling. The program will be focused on enhancing the usability of EOS to bridge the gap between the Web2 and Web3 experiences.
Yves La Rose, founder and CEO of the EOS Network Foundation, stressed that the upgrade activation indicates a new era for EOS as a token and smart contracts platform:
This new tokenomics model represents a landmark occasion for the EOS community. By establishing a fixed token supply and introducing new mechanics, we are ensuring a sustainable and prosperous new era for the EOS ecosystem. This strategic overhaul will not only stabilize the token economy but also incentivize active participation and growth within the network.
As covered by U.Today previously, EOS underwent a number of major consensus upgrades in 2023-2024.
RAM market and staking rewards upgrade kicking off
To advance the protocol’s RAM market, EOS validators decided to launch a specific 350 million EOS fund. This includes purchasing EOS RAM to ensure sufficient supply and liquidity provisioning to grow and increase accessibility to the RAM market.
The RAM market cap currently stands at a $300 million market cap at the time of writing.
Also, the introduction of high-yield staking rewards, along with adjustments to the staking lockup period, is designed to incentivize long-term commitment and active participation in the network.
