The EOS Network Foundation (ENF) has approved a proposal to cap the EOS token supply at 2.1 billion, marking a significant shift in the platform's tokenomics. The decision will see EOS burn 80% of its future token supply, transitioning from an inflationary token capped at 10 billion to a fixed supply of 2.1 billion. The move is intended to enhance the economic potential of the EOS ecosystem and combat the declining market value of EOS.

The proposal, put forward by ENF boss Yves La Rose, also includes the implementation of quadrennial halvings similar to Bitcoin. The ENF aims to eliminate inflation and enhance long-term value for the EOS community through these measures.

The proposal also includes provisions for staking rewards, with 250 million EOS tokens allocated towards staking rewards for EOS and RAM. These rewards are expected to begin by the end of June with the implementation of REX 2.0.

The proposal also stipulates that 350 million EOS tokens are to be locked in a dedicated account managed by ENF and Labs, allocated towards nurturing the chain’s RAM market cap, which already stands at $300 million.

However, despite these optimistic measures, the overall market sentiment remains pessimistic. The effectiveness of these strategies in revitalizing the EOS ecosystem and unlocking value for token-holders remains to be seen.