EOS Network unveils a 250M staking program
EOS Network has unveiled a new staking program to reinforce its network development plan for revamping EOS tokenomics. Participants who stake in the program will receive 85.6k EOS daily.
EOS Network has unveiled a new staking program to reinforce its network development plan for revamping EOS tokenomics. Participants who stake in the program will receive 85.6k EOS daily.
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According to EOS Network, early participants will be the most privileged stakeholders. The staking program will offer an annualized percentage yield of 60%, and more than 31 million EOS tokens will be distributed to stakers on an annual basis. The rewards program will allow participants to lock up their assets for 21 days, an increase from the previous lock-up period of only four days.
EOS Block Producers (BPs) are decentralized organizations that govern the EOS Network and allow it to reach consensus. The rewards program is set to distribute network-generated fees to these groups to complement the block reward income they earn by bringing the network to a consensus. According to EOS Network, rewarding BPs will support the ecosystem’s growth by encouraging block-producer activity in the public blockchain.
EOS Network CEO comments on the proposal
The staking program is part of a plan to enhance EOS’s economic potential through transformative tokenomics models. On May 31st, Yves La Rose, the chief executive officer of EOS Network, announced that the network reached a consensus to “approve the tokenomics proposal,” marking a major change in the ecosystem.
The #EOS Network has reached consensus to approve the tokenomics proposal!
❎ Inflation
✅ Fixed Token Supply
✅ 80% Reduction in FDV
✅ 4 yr $EOS Halvings
✅ $RAM Market SupportThis marks a New Era for $EOS!
— Yves La Rose (@BigBeardSamurai) May 31, 2024
EOS also released a blog post detailing the tokenomics proposal. The post revealed that the network’s Block Producers almost unanimously agreed to the proposal, which introduced the new reforms. The proposal introduced key features such as a fixed token supply, a reduction in fully diluted value, halving cycles, middleware operations, RAM market allocations, and the $250 million staking rewards program.
EOS Network BPs accept a new tokenomics proposal
EOS changed its tokenomics from inflationary to deflationary with a new maximum token supply of 2.1 billion tokens. The proposal also highlighted that the fully diluted amount was reduced by 80% to correspond with the new tokenomics structure. The proposal also introduced a four-year halving cycle to control the release of new tokens and manage the potential token influx.
“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.”
Yves La Rose
EOS’s proposal incentivized funding for middleware operations to reduce the gap between Web2 and Web3. EOS’s “new era” also involved allocating 350 million EOS for RAM market allocation. One of the most notable transformations was the introduction of a high-yield staking program that has finally come to pass. The program was meant to reward long-term active participants in the network.
Cryptopolitan reporting by Collins J. Okoth
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