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EOS Network approves new tokenomics model to enhance its economic potential 

The EOS Network Foundation approves a new tokenomics model 

The EOS Network Foundation (ENF), an open-source blockchain platform, has unveiled a new tokenomics model for the EOS ecosystem, signifying an important shift towards greater economic potential and stability for the network. 

The new model, backed by the majority of EOS Network block producers, will be implemented on June 1, according to the information shared with Finbold.

A ‘New Era’ for EOS

The new tokenomics model introduces several features designed to foster long-term growth on the platform.

With a fixed token supply, EOS will shift from an inflationary model capped at 10 billion tokens to a fixed supply of 2.1 billion tokens, eliminating inflation and creating a more predictable economic landscape.

The Fully Diluted Value (FDV) of the platform will also be slashed by 80%, aligning with the new tokenomics model and increasing the value proposition for holders.

In addition, four-year halving cycles will help manage the token supply, ensuring a steady and regulated distribution.

Next, a funding allocation will enhance middleware operations, bridging the usability gap between Web2 and Web3 experiences.

To ensure sufficient liquidity and support market growth and accessibility, 350 million EOS will be allocated to the RAM market (currently valued at $300 million).

Finally, the model introduces high-yield staking rewards and adjustments to the staking lockup period, encouraging long-term commitment and active network participation.

The significance of the new EOS tokenomics model

Yves La Rose, Founder and CEO of the EOS Network Foundation, emphasized the significance of the new changes, stating:

“This new tokenomics model represents a landmark occasion for the EOS community. By establishing a fixed token supply and introducing new mechanics, we are ensuring a sustainable and prosperous new era for the EOS ecosystem. This strategic overhaul will not only stabilize the token economy but also incentivize active participation and growth within the network.”

The ENF remains steadfast in its mission to drive innovation and growth within the EOS Network. 

The tokenomics update is thus a vital step toward unlocking the full potential of the blockchain, setting the stage for a dynamic and robust economic environment.

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