The EOS ecosystem has reached a consensus to approve a new tokenomics model, promising a “new era” for EOS tokenholders and developers.
TakeAway Points:
- The EOS ecosystem has reached a consensus to approve a new tokenomics model, promising a “new era” for EOS tokenholders and developers.
- According to the report, the largest initial coin offering (ICO) in the history of the cryptocurrency market was made possible by the EOS ecosystem, raising $4.1 billion in 2018.
EOS will move from an inflationary token supply with a maximum of 10 billion EOS tokens to a fixed supply of 2.1 billion tokens, as per an announcement on May 31. According to the EOS Network Foundation (ENF), the move would help curb inflation.
In addition, EOS’ fully Diluted Value (FDV) was reduced by 80%, and four-year halving cycles were implemented. Another modification is the addition of “high-yield staking rewards” with lockup, although yields were not stated.
The RAM Market, where users and developers may buy RAM (Random Access Memory) to install and operate apps on the network, will get 350 million EOS tokens from the EOS Foundation.
The cryptocurrency community viewed the statement on X with scepticism and distrust.
Pseudonymous user Xalytics wrote on X: “I am holding EOS from the ICO in 2017. I am really lost. What am I supposed to do with this RAM news ?”
In response to the announcement, the EOS token is currently trading at $0.80, essentially staying the same over the last 24 hours. The cryptocurrency has decreased by 21.6% since its debut, according to CoinMarketCap.
Largest Initial Coin Offering
The report stated that the largest initial coin offering (ICO) in the history of the cryptocurrency market was made possible by the EOS ecosystem. The business that created EOS at the time, Block.one, raised an astounding $4.1 billion in 2018. Court disputes, difficulties with regulators, and a failure to live up to ICO expectations were what transpired next.
Block.one settled with the U.S. Securities and Exchange Commission (SEC) in 2019 and agreed to pay a $24 million fine for conducting an unregistered securities offering at the time of its initial coin offering (ICO).
The Crypto Assets Opportunity Fund filed a class-action lawsuit, which was another legal problem arising from the ICO. In its complaint, Block.one was accused of making many fraudulent claims during its initial coin offering (ICO), one of which was that it will invest an extra $1 billion in the EOS network. In 2021, Block.one settled the lawsuit for $27.5 million.
EOS Network
The EOS community founded its foundation in 2021 in an effort to regain authority from Block.one, which was viewed as not living up to expectations. Yves La Rose, an original block producer, stepped in as the foundation’s founder and CEO.
According to La Rose, the new tokenomics represent “a landmark occasion for the EOS community.” He continued:
“This strategic overhaul will not only stabilise the token economy but also incentivize active participation and growth within the network.”
The layer-1 blockchain known as EOS was created to facilitate decentralised apps. During its first days, the network positioned itself as a competitor to Ethereum.
