QuickTake:

• EOS Network Foundation CEO confirms approval of proposal to cap EOS supply at 2.1 billion tokens.
• 80% of the excess supply will be burned.
• Proposal received consensus from block producers.
• Implementation expected in the coming months.

In a significant move for the EOS blockchain community, a proposal to cap the total supply of EOS tokens at 2.1 billion has been approved. Yves La Rose, CEO of the EOS Network Foundation, announced the community’s decision, marking a pivotal shift in the tokenomics of the EOS network.

The proposal, which includes burning nearly 80% of the total EOS supply, gained the necessary consensus from the block producers, setting the stage for a more sustainable and predictable supply model. The decision comes as part of ongoing efforts to refine and enhance the EOS ecosystem.

La Rose shared the news on X, stating, “The EOS Network has reached consensus to approve the tokenomics proposal.” The implementation of this proposal is expected in the coming months, following a multi-signature approval process from at least 15 of the 21 EOS block producers.

A Strategic Shift in EOS Tokenomics

The current circulating supply of EOS stands at 1.15 billion tokens, which is 54% of the originally planned supply. The new proposal will limit the total token supply to 2.1 billion, significantly lower than the initial cap of 10 billion tokens. This move is intended to stabilize the token’s value and create a more predictable economic model for the network.

As part of this new strategy, approximately 950 million EOS tokens will be minted to support the ecosystem’s growth. These tokens will be used to reward stakers and block producers, ensuring ongoing incentives for network participation and security.

Foundation’s Role and Historical Context

The EOS Network Foundation, under the leadership of Yves La Rose, has been instrumental in driving these changes. Established in August 2021, the Foundation was formed as a community-backed entity to take over from Block.one, the original developer of EOS. This transition marked a new chapter for EOS, focusing on community governance and decentralized decision-making.

EOS first gained attention with its massive initial coin offering (ICO), raising $4 billion from 2017 to 2018. Despite this successful fundraising, the relationship between the community and Block.one soured over time. The Foundation accused Block.one of failing to reinvest a significant portion of the ICO funds back into the EOS network as initially promised.

Future Prospects and Community Impact

The approval of the supply cap proposal is seen as a crucial step in ensuring the long-term viability and health of the EOS ecosystem. By reducing the potential inflation and excess supply, the community aims to enhance the value and utility of the EOS token.

The upcoming months will be crucial as the community and the Foundation work together to implement the new tokenomics model. This move is expected to bring more stability and attract further investment and participation in the EOS network.

The EOS community’s decision to cap the supply and burn the excess tokens reflects a growing trend in the blockchain space towards more responsible and transparent economic policies. As the implementation progresses, the EOS Network Foundation will continue to play a pivotal role in guiding the network towards a more sustainable and prosperous future.