Token distribution (holder status)
The token distribution mainly examines whether the tokens are distributed fairly and effectively. Generally speaking, the Web3 industry standard is to distribute at least 50% of the tokens to the community, which can effectively dilute the ownership that the founding team and investors can retain.
After the EOS new token proposal is implemented, the newly minted 950 million tokens will be distributed according to the following rules:
RAM market: 350,000,000 EOS, accounting for 16.7% of the total supply. A total of 350 million EOS will be used to develop and grow the RAM market and its crypto community. Specifically, one part is RAM market making and liquidity supply. 315 million EOS will be allocated for market making and liquidity supply for centralized exchanges and DeFi across multiple blockchains. The other part is programmatic RAM procurement. 35 million EOS tokens will be used to programmatically purchase RAM from the system Bancor pool within the TBD timeframe. RAM purchased through this mechanism will be used to support or fund EOS ecosystem initiatives.
Staking Rewards: 250,000,000 EOS, 11.9% of the total supply. A total of 250 million EOS tokens will be used for staking rewards, with a reward release rate controlled by EOS block producers, and the proposal suggests using a logarithmic curve to distribute rewards.
EOS Network Foundation: 150,000,000 EOS, 7.1% of the total supply. The EOS Network Foundation will allocate 150 million EOS tokens, equivalent to the current 1.5% network inflation for 8.5 years.
Block Producers: 100,000,000 EOS, 4.8% of the total supply. In order to make block production and network infrastructure more sustainable in the long term, all network fees generated by PowerUC, RAM transaction fees, and name auctions will be evenly distributed to the top 21 block producers.
EOS Labs: 85,000,000 EOS, 4% of the total supply. The token will be used to invest in ecosystem growth, liquidity provision for ecosystem projects, and partnerships.
Middleware: 15,000,000 EOS, 0.7% of the total supply. 15 million EOS tokens will be used exclusively for public product funding for middleware development to improve the usability of the EOS network.
Token Allocation Diagram
In addition to the allocation rules, we should also pay attention to the lock-up and release schedule of the tokens: to see if a large number of tokens will enter circulation, which will put downward pressure on the value of the token.In general, the release time of the project team should be longer than that of the ecological coin holders, which shows that the team has full confidence in the long-term success of the project.
In the new EOS token model, in addition to the immediate release of the RAM market and middleware, the other tokens allocated to staking rewards, EOS Network Foundation, block producers, and EOS Labs will follow the linear release law, and learn from the successful experience of the Bitcoin ecosystem, halving every four years to further promote the long-term stable operation of the ecosystem.
From the new token model, we can see that under the leadership of the EOS Network Foundation, EOS Labs and a number of core members of the EOS ecosystem, EOS is determined to reform and promote the development of the ecosystem through long-term construction. Although the EOS RAM market continues to be hot and the emergence of exSat, a project that integrates Bitcoin and EOS ecosystems, we also see more possibilities for the future development of EOS.
