The EOS ecosystem has unanimously approved a new tokenomics model, promising an exciting “new era” for EOS tokenholders and developers. In a statement released on May 31, it was announced that EOS will transition from an inflationary token supply of up to 10 billion EOS tokens to a fixed supply of 2.1 billion tokens. The move is aimed at curbing inflation, according to the EOS Network Foundation (ENF).
As part of the new model, EOS’ fully Diluted Value (FDV) has been reduced by 80% and four-year halving cycles have been implemented. Additionally, the introduction of “high-yield staking rewards” with lockup has been announced, although specific details on the yields have not been disclosed.
The EOS Foundation has allocated 350 million EOS tokens for its RAM Market, which allows developers and users to purchase RAM (Random Access Memory) for deploying and running applications on the network.
However, the announcement has been met with skepticism and doubts from the crypto community. One user, going by the pseudonym Xalytics, expressed confusion about what to do with the RAM news, stating, “I am holding EOS from the ICO in 2017. I am really lost about what I am supposed to do with this RAM news?”
Despite the mixed reactions, the EOS token is currently trading at $0.80, showing little change over the past 24 hours. Since its initial launch, the token has experienced a decline of 21.6%, according to CoinMarketCap.
The EOS ecosystem made headlines in the crypto industry when it conducted the largest initial coin offering (ICO). Back in 2018, Block.one, the company behind EOS at the time, raised an impressive $4.1 billion. However, the project faced challenges and legal battles, failing to meet ICO expectations.
In 2019, Block.one settled a case with the U.S. Securities and Exchange Commission (SEC) and paid a $24 million penalty for running an unregistered securities offering during its ICO.
Another legal dispute arose from the ICO, resulting in a class-action lawsuit filed by the Crypto Assets Opportunity Fund. The lawsuit accused Block.one of making several misrepresentations during the ICO, including a false promise to invest an additional $1 billion in the EOS network. In 2021, Block.one settled the suit for $27.5 million.
In an attempt to regain control from Block.one, which was seen as not fulfilling its promises, the EOS community established its foundation in 2021. Yves La Rose, an original block producer, took on the role of foundation founder and CEO.
La Rose described the new tokenomics as a significant milestone for the EOS community, stating, “It represents a landmark occasion for the EOS community.” He emphasized that EOS is a layer-1 blockchain designed to support decentralized applications and initially positioned itself as an “Ethereum killer.”
As the EOS community sets its sights on an unlikely comeback, the question remains: whatever happened to EOS?