- The EOS Network Foundation limits token supply to 2.1 billion.
- The new economic model includes a four-year halving and RAM market support.
- 950 million EOS tokens will be issued for ecosystem growth and rewards.
In a groundbreaking move, the EOS Network Foundation, led by CEO Yves La Rose, approved a community proposal to limit the total supply of EOS tokens to 2.1 billion.
This decision represents a significant change in network token economics, aimed at stabilizing and improving the economic model of the EOS ecosystem.
Community Approval and Implementation
The proposal, which has received approval from at least 15 of the 21 EOS block producers, involves burning nearly 80% of the current total EOS token supply.
This drastic reduction comes primarily from future emissions, effectively reducing the maximum supply from 10 billion to 2.1 billion tokens.
Yves La Rose’s post on
The current circulating supply of EOS is 1.15 billion tokens, accounting for 54% of the newly set limit.
To support ongoing and future ecosystem growth, the proposal also includes issuing an additional 950 million EOS tokens.
Issued tokens are allocated to various ecosystem activities, such as staker and block producer rewards, ensuring ongoing incentives and support for network participants.
In addition to the shift to a fixed token supply and reduction of fully diluted valuation (FDV), La Rose highlighted several other key aspects of the proposal, including a scheduled halving every four years and improved RAM market support.
In general, these changes aim to create a more predictable and sustainable economic environment for the EOS network to ensure its long-term success and stability.
EOS Network Foundation Leadership Transition
It is important to remember that EOS was originally a creation of Block.one and the EOS token was introduced to investors through an initial coin offering (ICO) that raised $4 billion between 2017 and 2018.
However, following some claims that Block.one does not reinvest the funds raised during the ICO into the development of the EOS network, La Rose established the EOS Network Foundation as a non-profit organization to support the EOS network.
The EOS Network Foundation aims to create a stronger, investor-friendly ecosystem by limiting token supply and implementing a series of economic reforms.
The planned changes will be rolled out over the next few months and will usher in what La Rose describes as “a new era for EOS.”