EOS Network Foundation Approves New Tokenomics Model to Enhance the EOS Ecosystem

The EOS Network Foundation (ENF), the entity entrusted by the EOS community to develop its core blockchain software, has approved a new tokenomics model

The EOS community has approved a new tokenomics model to enhance the economic potential of the EOS ecosystem, set to be deployed on June 1.

According to a press release, the proposal received a super majority consensus from EOS Network block producers.

The key features of the new model are as follows:

A transition from an inflationary token supply with a 10 billion maximum cap to a fixed supply of 2.1 billion tokens, aiming to eliminate inflation and establish a more predictable economic environment.

An 80% reduction in the Fully Diluted Value (FDV) of EOS, expected to enhance the long-term value for EOS holders.

Four-year halving cycles to control the release of new tokens into the market and fund middleware operations, focusing on improving the usability of EOS to bridge the gap between web2 and web3 experiences.

An allocation of 350 million EOS to support the RAM market, ensuring ample supply and liquidity provision (RAM market is currently capped at $300 million).

High-yield staking rewards and adjustments to the staking lockup period, introduced to incentivize long-term commitment and active participation in the network.

"The new tokenomics model is a major milestone for the EOS community, and we are excited to see the changes it will bring to the token economy, further stabilizing and promoting active participation and growth within the network,” said Yves La Rose, Founder and CEO of the EOS Network Foundation, in a statement to Investing.com.

"The new model effectively aligns the interests of various actors within the EOS ecosystem. By introducing protocol-level yield and establishing a network treasury, we are creating a framework where incentives are designed to support positive long-term growth.”

"This new structure encourages stakeholders to lock up their EOS, contributing to network stability and fostering a collaborative environment aimed at driving innovation and prosperity for the entire community."

Established in 2021, the EOS Network Foundation supports an open technology environment through stakeholder engagement, community programs, and ecosystem funding.

The EOS Network is a third-generation blockchain platform powered by the EOS VM to enable near-feeless transactions and support Web3 applications.

In 2022, EOS, Telos, WAX, and UX Network joined forces to take control of the development of the EOSIO protocol core code, which supports each of these blockchains. As part of this alliance, the coalition now leads the development of the community-run blockchain protocol known as Antelope.