Hold on to your hats, crypto enthusiasts! The MultiversX community is buzzing after a proposal that could rewrite the rules of EGLD. Let's dive into the drama surrounding the potential removal of the EGLD supply cap.
The Proposal: Inflation Nation?
Robert Sasu, a core developer at MultiversX Foundation, dropped a bombshell at “The Foundry” event on October 3, 2025: a governance proposal suggesting the removal of EGLD's supply cap. This is a U-turn of epic proportions, considering MultiversX (formerly Elrond) has long touted a Bitcoin-esque scarcity model with a hard cap of 31.4 million EGLD. Their own website still boasts about this limited supply!
Broken Promises and Backlash
For years, MultiversX has emphasized the scarcity of EGLD, setting it apart from fiat currencies. This proposal feels like a betrayal to many who bought into that vision. Remember when Sasu himself said, “Nobody is talking about increase in supply?” Well, times change, don't they?
The Tokenomics Tango: Inflation vs. Burning
The proposed economic framework includes a 9.47% annual tail inflation rate, coupled with a 10% burn of validator fees. Justin Bons, founder of CyberCapital, isn't buying it. He argues that the inflation rate is too high and the burn rate too low, creating an unsustainable model. While some dismissed his concerns, the underlying issues remain.
Why the Change of Heart?
MultiversX argues that these changes are necessary to attract liquidity, align long-term stakeholders, and fuel their expansion into the US market. The idea is that increased adoption will drive revenue, with a significant portion of fees going to developers to incentivize innovation. It's a gamble, but they believe it could position the network for long-term growth.
The Downside: Dilution and Discontent
The big risk? Inflation could dilute the holdings of long-term EGLD holders. Validators and smart contract owners might benefit, but at the expense of those who believed in the original scarcity promise. It's a delicate balancing act, and many aren't convinced it'll work.
Market Reaction: EGLD's Rollercoaster Ride
As of October 3, 2025, EGLD is trading at $14.25, down 41.31% year-over-year. It's been consistently losing ground in the crypto rankings. Whether this proposal will revitalize the token or further erode confidence remains to be seen.
The Takeaway: A Fork in the Road
MultiversX is at a crossroads. They're betting that these controversial changes will lead to long-term success, but they risk alienating their loyal community in the process. Only time will tell if this gamble pays off.
So, what's the verdict? Is MultiversX innovating or just backpedaling? One thing's for sure: the conversation is far from over, and the future of EGLD is anything but certain. Buckle up, folks; it's gonna be a wild ride!
