The soul of blockchain lies in tokens. For all kinds of Web3 projects, tokens are not only an economic incentive mechanism, but also the core pillar for achieving decentralization. A perfect token economic model is the key to project success and sustainable development. Before participating in a project, users must carefully evaluate the token economics and understand the project's design of tokens to increase the success rate of investment.
Six years ago, EOS raised $4 billion in crowdfunding worldwide with its advanced technical logic and exquisite token design. With the rapid development of the industry, EOS did not disappear. Instead, under the leadership of the EOS Network Foundation and EOS Labs, it actively responded to market changes and explored a development path that was in line with ecological interests and market needs. Today, EOS has proposed a new token economic model, which has quickly attracted widespread attention from the community.
According to OKX market data, after the announcement of the EOS news, the short-term price once broke through $0.95, an increase of more than 12%. The new model not only gets rid of the inflation mechanism, but also significantly reduces the supply of tokens, showing the design team's deep insight into the market and determination for the future. This article will explore EOS's new token economic model and its future plans, including EOS RAM, EOS EVM, and exploration of integration with the Bitcoin ecosystem.
Interpretation of EOS's latest token governance model
Token supply (supply side) evaluates the pros and cons of token supply, mainly looking at factors such as maximum supply, circulation, market value, and token destruction mechanism. When EOS was launched, the token supply was 1 billion, and an annualized inflation of 5% was designed. However, the community soon realized the adverse effects of inflation on ecological development, and after several rounds of consensus reforms, the inflation rate was reduced to 3%. The new model completely cancels the annual inflation design, and more than 80% of the inflation tokens in the total supply will be destroyed in the future, and the total supply of EOS is set at 2.1 billion.
Currently, the circulation of EOS is about 1.15 billion, accounting for 54.8% of the total supply. This part of the tokens will not be changed to further defend the rights and interests of early users. At the same time, about 950 million tokens will be minted and distributed according to certain linear release conditions. EOS's market value is close to $900 million, and as the ecological construction progresses, the utility of the token will be further enhanced.
Token utility (demand side)
The demand side of the token is equally important. The actual use scenarios and diversified applications of the token within the ecosystem will attract a continuous influx of users. EOS tokens are a unit of measurement for network resources. Applications need to consume a certain amount of network resources to run. Users holding EOS can obtain corresponding network resources according to the equity ratio. In addition, token holders can also participate in governance to vote for nodes and obtain dividends.
Yves La Rose, CEO of the EOS Network Foundation, said that EOS's new token economic model will be deployed to the main network at the end of May and staking rewards will be launched before the end of June. Through the construction of a variety of ecological application scenarios, EOS will empower the utility of tokens and enhance their value in the market.
Token distribution (holder status)
The distribution of tokens mainly examines whether the tokens are distributed fairly and effectively. The standard in the Web3 industry is to allocate at least 50% of the tokens to the community to dilute the ownership of the founding team and investors. According to the new proposal, the newly minted 950 million tokens will be distributed according to the following rules:
RAM Market: 350,000,000 EOS, accounting for 16.7% of the total supply.
Staking Rewards: 250,000,000 EOS, accounting for 11.9% of the total supply.
EOS Network Foundation: 150,000,000 EOS, accounting for 7.1% of the total supply.
Block Producers: 100,000,000 EOS, accounting for 4.8% of the total supply.
EOS Labs: 85,000,000 EOS, accounting for 4% of the total supply.
Middleware: 15,000,000 EOS, accounting for 0.7% of the total supply.
The distribution of these tokens will follow the linear release law, drawing on the successful experience of the Bitcoin ecosystem, and halving every four years to promote the long-term stable operation of the ecosystem.
Future development of EOS ecosystem
Under the leadership of EOS Network Foundation, EOS Labs and a group of core members, EOS is undergoing drastic reforms to promote ecological development. In particular, the continued popularity of the EOS RAM market and its integration with the Bitcoin ecosystem project exSat provide more possibilities for the future development of EOS.
EOS RAM: EOS RAM is one of the most eye-catching parts of the EOS ecosystem. It not only provides users with efficient resource management, but also provides developers with flexible application scenarios. Through effective resource allocation, EOS RAM can improve the overall performance of the network and attract more developers to participate.
The emergence of exSat: As a fusion project with the Bitcoin ecosystem, exSat demonstrates the potential of EOS in the cross-chain ecosystem. Through deep integration with the Bitcoin ecosystem, EOS can not only leverage the stability and liquidity of Bitcoin to enhance its market position, but also provide users with more investment options and opportunities.
Summary
EOS's new token economic model provides strong support for its future development. By optimizing token supply, improving token utility and fair token distribution, EOS is actively building a sustainable ecosystem. In this process, the success of projects such as EOS RAM and exSat will further promote its influence in the blockchain field.
As the market continues to change, EOS still needs to maintain its ability to adapt flexibly to cope with future opportunities and challenges. We look forward to the development of EOS in 2024 and beyond, bringing more innovation and changes to the blockchain ecosystem.