Analysis of the latest EOS token governance model
Generally speaking, the evaluation of the token economic model is mainly carried out through the following four dimensions:
Token supply (supply side)
Token utility (demand side)
Token distribution (holding object situation)
Therefore, this article will also focus on these four to further understand the new EOS token economic model.
Token supply (supply side)
Generally speaking, the evaluation of whether the token supply is good or not is mainly affected by factors such as the maximum supply, circulation, market value and token destruction mechanism.
Previously, when EOS was launched, the token supply was 1 billion, but an annualized inflation of 5% was designed, of which 1% was used to reward block producers and 4% was accumulated in the "eosio. saving" account for subsequent ecological construction. But soon the community members realized the adverse effects of 5% inflation on the development of the ecosystem. Therefore, between 2020 and 2023, the EOS ecosystem underwent several rounds of consensus reforms, and the EOS tokens accumulated in "eosio. saving" were destroyed, and the annual inflation of EOS was reduced to 3%.
This new token economic model aims to completely solve the various restrictions on the development of EOS caused by inflation.
The new model completely cancels the design of EOS annual inflation. In the future, more than 80% of the inflation tokens in the total supply will be destroyed. The total supply of EOS is set at 2.1 billion, of which: the current circulation of EOS is about 1.15 billion, accounting for about 54.8% of the total supply of 2.1 billion. This part of the tokens will not be changed to further defend the rights and interests of early users of the project; in addition, about 950 million tokens will be minted and distributed, and follow certain linear release conditions.
On the other hand, we can see that the current market value of EOS is nearly 900 million US dollars. With the advancement of various ecological construction work to empower the utility of tokens, EOS will have broad room for growth in the future.
Token utility (demand side)
Token utility is the demand side of tokens. If a token has actual usage scenarios within the ecosystem and can attract a continuous influx of users through a variety of application scenarios, it means that the value of the token can be efficiently circulated within the ecosystem, which is an important indicator for measuring the prosperity of the project.
EOS tokens are a unit of measurement for network resources. Applications on the EOS network require a certain amount of network resources to run, such as CPU and network bandwidth.Users holding EOS coins can obtain corresponding network resources according to their equity ratio, so that the EOS network can distribute resources more fairly.
EOS token holders can also obtain dividends by participating in governance and voting for nodes. Super nodes on the EOS network are essential for verifying transactions and generating new blocks, and EOS coin holders can choose super nodes they trust by voting. This mechanism can ensure the security and stability of the network. On May 9, Yves La Rose, CEO of the EOS Network Foundation (ENF), wrote: "EOS's new token economic model will be deployed to the main network at the end of May. EOS staking rewards will be launched before the end of June."
In addition, the EOS ecosystem will also empower token utility by building a variety of ecological application scenarios.
