On May 31, 2024, Yves La Rose, CEO of the EOS Network Foundation (ENF), said that the new token economics proposal for the EOS network has been officially passed. The proposal will shut down inflation and destroy 80% of the total supply of EOS in the future. The code deployment will take effect on June 1. In the future, the total amount of EOS will be fixed at 2.1 billion. Subsequently, the EOS Network Foundation announced a new development roadmap for EOS.

According to current market developments, the EOS destruction proposal is actually a marketing strategy that turns the meme concept into a reality. It is expected that EOS will see a good increase when the destruction is completed on June 1.

 

There have been cases of burning memes before, which refer to a fixed number of tokens that are destroyed, causing the number of tokens to suddenly shrink, prompting prices to rise.

 

For example, the meme animal coin SLERF. On April 19, after the operator of the Slerf project raised a lot of user funds, due to his own careless operation, the LP pool and airdrop tokens were accidentally destroyed, and the minting authority was permanently removed. The Slerf project, which raised more than 50,000 SOL, suddenly encountered an accident.

Without the LP pool and the permanent removal of coin minting rights, SLERF no longer has a project owner and has become a true community token. The destruction of more than 50,000 SOLs also means that tens of millions of SLERFs have been destroyed. SLERF has undergone a deflation, which also caused the SLERF price to rise rapidly at the time. Within 1 hour, the increase was as high as 1,500%.

 

This is not an isolated case. Previously, Celsius Network (CEL) also experienced a breakthrough rise after the destruction. On May 2 of this year, Celsius Network announced the destruction of 652.2 million CEL coins due to the company's bankruptcy. The destruction accounted for 94% of the total supply. Driven by this news, CEL coins continued to rise. The price of the coin increased from US$0.14 to US$1.7 in a week, an increase of 1215%. The current price of the coin is stable at US$1.2.

Coincidentally, shortly after EOS announced the destruction, the proposal issued by Stader Labs, a multi-chain liquidity staking platform, to destroy 20% of the total supply of SD tokens was passed. The first phase of the SD token economics transformation will be completed. The proposal shows that due to concerns about the low float and high FDV of SD tokens, it is proposed to destroy 20% of its total token supply, that is, 30 million SD, and the total supply of SD tokens will be reduced from 150 million to 120 million.

 

Through the lessons learned from the burning meme strategy, we can see the market effect of burning tokens on the surge in prices. EOS and SD are expected to experience a significant increase after implementing the destruction proposal. This is not only a change in technology and economics, but also a reflection of market psychology and expectations. #eos #cel #sd