Blockchain
EOS Tokenomics Revamp: Significant Changes Ahead
introduction
The EOS blockchain is on the verge of a transformative upgrade with significant proposed changes to its tokenomic model. Second eosnetwork.com, the EOS System Contracts v3.4.0 release will introduce a fixed supply model among other crucial updates. These changes aim to stabilize and predictably grow the EOS token economy, with the first changes expected to take effect following the approval of at least 15 of the 21 EOS block producers (BPs).
Main proposed changes
The new tokenomics model includes several key updates:
- Fixed token supply: Limiting the total EOS tokens to 2.1 billion.
- Token vesting schedules: Introducing vesting programs for network custodians, including EOS Block Producers, Staking Rewards, EOS Network Foundation (ENF), and EOS Labs.
- Instant Token Liquidity: Allocation of funds for the purchase of 35 million EOS in RAM and 315 million EOS for the commercialization of RAM.
These updates lay the foundation for further enhancements to the Resource Exchange (REX), including EOS staking rewards and more flexible distribution of system fees.
Instant token liquidity
Upon successful passage of the multi-signature proposal (MSIG), several tokens will immediately become liquid:
- 315 million EOS for market making and liquidity provision on centralized exchanges and DeFi platforms.
- 35 million EOS to purchase RAM from the Bancor system pool to support EOS ecosystem initiatives.
- 15 million EOS for public goods financing aimed at developing middleware to improve the usability of the EOS network.
Strategic RAM purchase
A noteworthy aspect of the new tokenomics model is the strategic management of the EOS RAM. If the MSIG is approved, 35 million EOS will be used to purchase RAM, support ventures, and establish Wrapped RAM (WRAM) liquidity on various exchanges to improve market depth and accessibility.
Coming soon in Part II: Transition to REX 2.0
The second part of this series will explore the proposed transition to REX 2.0, which is expected to bring high-yield staking rewards for EOS token holders. This transition is contingent on the successful implementation of the changes introduced in the first MSIG for v3.4.0 system contracts. Improvements to REX will include:
- Diversion of system fees to Block Producers (BP).
- Allow staking rewards to flow into REX.
- Extension of REX staking lockup period from 4 days to 21 days.
Testing and approval
The proposed changes were subjected to a BlockSec security audit, without finding any critical issues. Deployed on the Kylin and Jungle4 testnets, the new system actions and tokenomics mechanics have been thoroughly tested. Community members and block producers are encouraged to interact with these new features to ensure smooth integration.
Recognition of contributors
Special thanks go to the contributors who played a crucial role in this release, highlighting the community-driven approach of EOS blockchain development.
What’s next?
We anticipate further in-depth exploration in Part II of this series, “Transforming REX Dynamics.” The next installment will focus on optimizing and improving the functionality and flexibility of REX within the EOS ecosystem, promising more robust and predictable returns for participants.
For detailed information on upcoming changes to tokenomics, please visit EOS official blog.
Image source: Shutterstock
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