EOS Network Approves New Tokenomics, Promises New Era

EOS network

Despite ongoing community doubt and previous regulatory challenges, EOS is moving to a fixed supply of 2.1 billion tokens and introducing halving cycles.  

EOS, a leading Layer-1 network for developers looking to build blockchain-based games (GameFi), has approved a new tokenomics model, promising the dawn of a new era for the blockchain platform.

In a May 31 announcement, EOS revealed that it is moving from an inflationary token supply, which was previously capped at 10 billion EOS tokens ($8 billion), to a fixed supply of 2.1 billion tokens. The EOS Network Foundation (ENF) noted that the adjustment is intended to address inflationary concerns.  

Furthermore, EOS’s fully Diluted Value (FDV) saw an 80% reduction and introduced four-year halving cycles. Another alteration involves the introduction of “high-yield staking rewards” with lockup, though the specific yields were not disclosed.   

EOS Tokens Allocation 

The EOS Foundation plans to allocate 350 million EOS tokens designated for its RAM Market, a platform where developers and users can buy RAM (Random Access Memory) for deploying and operating applications on the network. 

“I am holding EOS from ICO in 2017. I am really lost what I am suppose to do with this RAM news? Do I need to take any action or no need? Will my EOS value go zero if I don’t buy Ram?” Pseudonymous user Xalytics said on the X platform.  

In response to the announcement,  the EOS token is currently trading at $0.81 as of the time of writing, showing virtually no change over the past 24 hours. According to CoinMarketCap, the token has experienced a 21.6% decline since its initial launch.  

The EOS ecosystem organized the most extensive initial coin offering (ICO) in the crypto industry. Block. One, the company behind EOS at the time, raised a staggering $4.1 billion in 2018. Subsequently, the ICO failed to meet expectations, legal battles ensued, and regulatory challenges emerged.    

Lawsuit Settlements 

Meanwhile, in 2019, Block.one settled with the U.S. Securities and Exchange Commission (SEC), agreeing to pay a $24 million fine for conducting an unregistered securities offering during its ICO.   

Another legal conflict arising from the ICO was a class-action lawsuit initiated by the Crypto Assets Opportunity Fund. The lawsuit alleged several misrepresentations by Block.one during its ICO, including a deceptive promise to invest an extra $1 billion in the EOS network. In 2021, Block.one resolved the lawsuit by agreeing to a $27.5 million settlement.  

After the lawsuit settlement, the EOS community formed its own foundation to regain control from Block.one, which was seen as failing to deliver on its commitments. Yves La Rose, a top-performing block producer, assumed the role of the foundation’s founder and CEO