EOS Tokenomics Revamp: Significant Changes Ahead

Introduction

The
EOS
blockchain
is
on
the
verge
of
a
transformative
upgrade
with
significant
proposed
changes
to
its
tokenomics
model.
According
to

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
modifications
expected
to
take
effect
following
approval
by
at
least
15
of
the
21
EOS
block
producers
(BPs).

Key
Proposed
Changes

The
new
tokenomics
model
includes
several
foundational
updates:

• 
  Fixed
  Token
  Supply:
  Capping
  the
  total
  EOS
  tokens
  at
  2.1
  billion.
• 
  Token
  Vesting
  Schedules:
  Introducing
  vesting
  schedules
  for
  network
  custodians,
  including
  EOS
  Block
  Producers,
  Staking
  Rewards,
  the
  EOS
  Network
  Foundation
  (ENF),
  and
  EOS
  Labs.
• 
  Immediate
  Token
  Liquidity:
  Allocating
  funds
  for
  purchasing
  35
  million
  EOS
  in
  RAM
  and
  315
  million
  EOS
  for
  RAM
  market-making.

These
updates
set
the
stage
for
further
enhancements
to
the
Resource
Exchange
(REX),
including
EOS
staking
rewards
and
a
more
flexible
distribution
of
system
fees.

Immediate
Token
Liquidity

Upon
the
successful
passage
of
the
multi-signature
(MSIG)
proposal,
several
tokens
will
become
immediately
liquid:

• 315
  million
  EOS
  for
  market-making
  and
  liquidity
  provisioning
  across
  centralized
  exchanges
  and
  DeFi
  platforms.
• 35
  million
  EOS
  for
  purchasing
  RAM
  from
  the
  system
  Bancor
  pool
  to
  support
  EOS
  ecosystem
  initiatives.
• 15
  million
  EOS
  for
  public
  goods
  funding
  aimed
  at
  middleware
  development
  to
  improve
  the
  EOS
  Network’s
  usability.

Strategic
RAM
Purchase

A
notable
aspect
of
the
new
tokenomics
model
is
the
strategic
management
of
EOS
RAM.
If
the
MSIG
is
approved,
35
million
EOS
will
be
used
to
purchase
RAM,
supporting
initiatives
and
establishing
WRAM
(wrapped
RAM)
liquidity
on
various
exchanges
to
enhance
market
depth
and
accessibility.

Upcoming
in
Part
II:
Transition
to
REX
2.0

The
second
part
of
this
series
will
explore
the
proposed
transition
to
REX
2.0,
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
the
System
Contracts
v3.4.0.
Enhancements
to
REX
will
include:

• Diverting
  system
  fees
  to
  Block
  Producers
  (BPs).
• Enabling
  staking
  rewards
  to
  drip
  into
  REX.
• Extending
  the
  REX
  staking
  lockup
  period
  from
  4
  days
  to
  21
  days.

Testing
and
Approval

The
proposed
changes
have
undergone
a
BlockSec
security
audit,
with
no
critical
issues
found.
Deployed
on
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
functions
to
ensure
smooth
integration.

Acknowledging
Contributors

Special
thanks
are
extended
to
the
contributors
who
played
crucial
roles
in
this
release,
underscoring
the
community-driven
approach
of
the
EOS
blockchain
development.

What’s
Next?

Anticipate
further
in-depth
exploration
in
Part
II
of
this
series,
“Transforming
REX
Dynamics.”
The
next
installment
will
focus
on
optimizing
and
enhancing
the
functionality
and
flexibility
of
REX
within
the
EOS
ecosystem,
promising
more
robust
and
predictable
returns
for
participants.

For
detailed
information
on
the
upcoming
tokenomics
changes,
visit
the

official
EOS
blog.

Image
source:
Shutterstock

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