The EOS Network Foundation has approved a proposal to cap the chain's token supply at 2.1 billion, with the goal of "Make EOS Great Again." EOS will burn 80% of its future token supply, going from an inflationary token capped at 10 billion to a fixed supply of 2.1 billion.

This change is just one of many introduced since the ENF began funding EOS Labs as a completely new entity last year. The tokenomics update will also see the implementation of Bitcoin-style quadrennial drawdowns. The new tokenomics model is “designed to enhance the economic potential of the EOS ecosystem” and mark a “New Era for EOS.”

The bold proposal, put forward by ENF head Yves La Rose, was approved by a supermajority consensus of EOS Block Producers. By reducing the Fully Diluted Value (FDV) of its token by a whopping 80%, ENF hopes to eliminate inflation and improve long-term value for the EOS community. The addition of halving cycles aims to moderate the influx of tokens into the market.

Additionally, 250 million EOS tokens (around $142 million at current prices) were allocated for staking rewards for EOS and RAM. EOS staking rewards are expected to begin at the end of June with the implementation of REX 2.0.

On the other hand, it was stipulated that 350 million EOS tokens will be locked in a dedicated account managed by ENF and Labs and allocated to foster the chain's RAM market capitalization, which already stands at $300 million.

“This strategic review will not only stabilize the token economy, but will also incentivize active participation and growth within the network,” La Rose predicts. For the ENF, the upgrade is seen as a boost for the blockchain as it seeks to revitalize its ecosystem and unlock value for token holders.