Yves La Rose, CEO of the EOS Network Foundation, announced the approval of a community proposal to cap EOS supply at 2.1 billion tokens and burn the excess. This decision will burn nearly 80% of the total EOS supply, primarily from future emissions, setting a fixed limit instead of the previous 10 billion tokens.
The EOS Network Foundation, which took control from Block.one in 2021, presented a multi-signature proposal that gained approval from at least 15 of the 21 EOS block producers. The first update is expected in the coming months. Currently, EOS has a circulating supply of 1.15 billion tokens, representing 54% of the planned total.
Under La Rose’s leadership, the foundation aims to support ecosystem growth by minting 950 million EOS tokens to reward stakers and block producers. This marks a significant shift from the inflationary model to a fixed supply, benefiting the ecosystem.
La Rose highlighted that this move will reduce the fully diluted valuation (FDV) by 80%, align with a four-year halving schedule, and support the RAM market. This strategic change is set to usher in a new era for the EOS network.
Concluding, this decision is pivotal for the long-term stability and growth of the EOS ecosystem, ensuring sustained support and development within the network.
