EOS Network Implements Coin Supply Cap to Drive Sustainability
CEO Yves La Rose, leading the EOS Network Foundation, recently announced the approval of a proposal to limit the total supply of EOS coins to 2.1 billion units. This decision comes after a community-driven effort where block producers agreed to establish a fixed supply limit and burn approximately 80% of the excess coins. By doing so, the new measure aims to reduce the future emissions from the initially planned 10 billion coins to 2.1 billion.
The approval process involved the EOS Network Foundation taking control from Block.one in 2021. A multi-signature proposal to limit the EOS supply was submitted and gained approval from at least 15 of the 21 EOS block producers. Yves La Rose confirmed the consensus on social media, highlighting the network’s acceptance of the tokenomics proposal. The initial update is expected to roll out in the coming months.
Currently, EOS has a circulating supply of 1.15 billion coins, which represents 54% of the planned total supply. An additional 950 million EOS coins will be created to support ecosystem growth, including rewarding stakers and block producers. The Foundation, under La Rose’s leadership, remains committed to the long-term sustainability of the EOS community.
The emergence of the EOS Network Foundation in August 2021, led by Yves La Rose, has been instrumental in supporting and developing the EOS network. Through various initiatives and a new roadmap, the Foundation aims to foster network growth and address community needs. It is important to note that disputes had previously arisen between the Foundation and Block.one, with allegations that significant ICO funds were not reinvested as promised. However, under La Rose’s guidance, the Foundation continues to drive positive change.
From a user perspective, several practical inferences can be drawn from the coin supply cap implementation:
1. The limit on EOS coin supply may lead to increased scarcity and potentially enhance the value of existing EOS coins.
2. Burning 80% of the excess coins is likely to have a positive impact on the tokenomics, benefiting long-term holders.
3. The community-driven governance model showcased the importance of decentralized decision-making within blockchain networks.
4. Additional minted coins will be utilized for growth purposes, rewarding active participants, and supporting network operations.
In summary, the EOS Network Foundation’s decision to cap the coin supply represents a significant strategic shift in the tokenomics strategy, aiming to ensure the sustainability and growth of the EOS ecosystem.