The EOS network approves a new tokenomics, promises a ‘new era’

The EOS ecosystem has reached an agreement to approve a new tokennomics model, promising a “new era” for EOS tokenholders and developers.

According to the announcement made on May 31, EOS will move from an inflationary token with a maximum of 10 billion EOS tokens to a fixed 2.1 billion tokens. According to the EOS Network Foundation (ENF), the move will help curb inflation.

In addition, EOS's fully depreciated value (FDV) was reduced by 80%, and four-year half-cycles were implemented. Another change is the addition of “high-yield rewards” with the lock, although the product is not specified.

The EOS Foundation allocates 350 million EOS tokens allocated to the RAM market for developers and users to purchase RAM (Random Access Memory) to deploy and run applications on the network.

At X, the announcement was met with skepticism and skepticism by the crypto community. Anonymous user Xalytics wrote on X: “I'm holding EOS from ICO in 2017. I'm at a loss as to what to do with this RAM news?”

In response to the news, the EOS token is trading at $0.80 at the time of writing, unchanged over the past 24 hours. According to CoinMarketCap, the token has fallen by 21.6% since its initial launch.

The EOS ecosystem was responsible for the largest initial coin offering (ICO) in the crypto industry. Block.one, then the company behind EOS, raised a whopping $4.1 billion in 2018. After that is the inability to meet the expectations of the ICO, court battles and challenges with regulators.

In the year In 2019, Block.one reached a settlement with the US Securities and Exchange Commission (SEC), paying a $24 million fine for offering unregistered securities during the ICO.

Another legal dispute stemming from an ICO is a class-action lawsuit filed by the Crypto Assets Opportunity Fund. The suit accuses Block.one of several misrepresentations during the ICO, including a false promise to invest an additional $1 billion in the EOS network. Block.one ended the lawsuit with $27.5 million in 2021.

In the year In 2021, the EOS community formed the foundation to take control from Block.one, which was seen as not fulfilling its promises. Yves La Rose, the producer of First Block, has joined as the foundation's founder and CEO.

According to La Rose, the new Tokinomics represents a “significant event for the EOS community.” He continued:

This strategic shift will not only stabilize the token economy, but also encourage active participation and growth in the network.

EOS is a layer-1 blockchain designed to support decentralized applications. The network positioned itself as the “Ethereum killer” in its early days.

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