In a groundbreaking decision, the EOS Network Foundation, led by CEO Yves La Rose, has approved a proposal to cap the total supply of EOS tokens at 2.1 billion, representing a transformative shift in the network's tokenomics. This strategic move is aimed at stabilizing and enhancing the economic framework of the EOS ecosystem.

Community Consensus and Implementation

The proposal, endorsed by a majority of the 21 EOS block producers, entails burning nearly 80% of the current EOS token supply. This reduction will mainly come from future emissions, effectively lowering the maximum supply from 10 billion to 2.1 billion tokens. Yves La Rose confirmed the consensus within the community regarding the proposal, highlighting the foundation's commitment to a fixed token supply and reduced inflation. At present, there are 1.15 billion circulating EOS tokens, constituting 54% of the newly established cap.

To support the ongoing and future growth of the ecosystem, an additional 950 million EOS tokens will be minted. These newly minted tokens will be allocated for various ecosystem activities, such as incentivizing stakers and block producers, ensuring continuous support and motivation for network participants.

Aside from transitioning to a fixed token supply and lowering the fully diluted valuation, the proposal includes scheduled halvings every four years and enhanced support for the RAM market. These modifications are designed to create a more predictable and sustainable economic landscape for the EOS network, positioning it for long-term success and stability.

Leadership Transition at EOS Network Foundation

It is crucial to recognize that EOS was initially developed by Block.one, and the EOS token was introduced to investors through an initial coin offering (ICO) that raised $4 billion between 2017 and 2018. Following allegations of Block.one's failure to reinvest the ICO funds into EOS Network development, Yves La Rose established the EOS Network Foundation as a non-profit organization to uphold the interests of the EOS Network.

By capping the token supply and implementing various economic reforms, the EOS Network Foundation aims to establish a more resilient and investor-friendly ecosystem. These planned changes are scheduled to be rolled out in the forthcoming months, signaling the onset of a new era for EOS as envisioned by La Rose.