Coinspeaker EOS Network Foundation Reveals Major Tokenomics Transformation
The EOS Network Foundation, an open-source blockchain platform, has recently announced a significant transformation of its EOS blockchain. This transformation will occur through proposed updates to its tokenomics, explained in the EOS System Contracts v3.4.0 release.
According to the first installment of a two-part series, these changes are designed to stabilize and grow the EOS token economy by implementing a fixed supply model. This includes capping the total EOS token supply at 2.1 billion tokens, effectively ending the previous model of inflation. Additionally, the new model introduces token vesting schedules for network custodians, including EOS Block Producers, Staking Rewards, the EOS Network Foundation (ENF), and EOS Labs.
“The EOS System Contracts v3.4.0 release marks a watershed moment for the EOS blockchain, introducing foundational changes to its tokenomics,” states the EOS Network Foundation.
Strategic Management of EOS RAM
A key feature of the new tokenomics model is the strategic management of EOS RAM. Notably, if the multi-signature (MSIG) proposal receives approval from at least 15 of the 21 EOS block producers, 315 million EOS will be allocated for market making and liquidity provisioning across centralized exchanges (CEXs) and decentralized exchanges (DEXs). Additionally, 35 million EOS will be used to purchase RAM from the system Bancor pool to support EOS ecosystem initiatives.
These RAM allocations will be acquired through multiple transactions of varying amounts between the approval of the new tokenomics and the Spring 1.0 hard fork scheduled for July.
The purchased RAM will be used to support or fund EOS ecosystem initiatives, the EOS Network Foundation explains. Additionally, professional market makers will acquire RAM to establish wrapped RAM (WRAM) liquidity on various exchanges, enhancing the market depth and accessibility for EOS RAM.
The successful approval of the MSIG will also dedicate 15 million EOS to funding public goods for middleware development to improve the usability of the EOS Network. The announcement reads:
“These tokenomic updates also set the stage for subsequent enhancements to REX, including EOS staking rewards, and a more flexible distribution of system fees.”
Looking Ahead
The foundation expects EOS staking rewards to start by the end of June with the implementation of REX 2.0. For the second part of the series, it plans to explore the proposed transition to REX 2.0, which is expected to initiate high-yield staking rewards for EOS token holders. The foundation explains:
“We will delve into the proposed transition to REX 2.0, set to bring about crucial enhancements like redirecting system fees to Block Producers, incorporating staking rewards into REX, and extending the staking lockup period to 21 days.”
However, this transition will be dependent on the successful implementation of the changes introduced in the first MSIG.
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EOS Network Foundation Reveals Major Tokenomics Transformation