The EOS Network Foundation has announced the approval of the proposal to cap the total supply of EOS tokens at 2.1 billion. Currently, there are 1.15 billion tokens in circulation, representing 54% of the planned total supply. EOS had raised $4 billion during its ICO between 2017 and 2018.
EOS Network Foundation Approves Token Supply Cap
Yves La Rose, the CEO of the EOS Network Foundation, has announced the approval of the proposal to cap the total supply of EOS tokens at 2.1 billion. This initiative aims to establish a fixed supply for EOS by burning the excess 80% primarily from future emissions. The initial plan had set a limit of 10 billion tokens.
Consensus of Block Producers and New Issuances
The proposal has received approval from the majority of EOS block producers, with at least 15 out of 21 producers endorsing this change through a multi-signature proposal. This consensus marks a significant turning point for the currency management as it drastically reduces the potential number of EOS tokens in circulation. In addition to the current supply, 950 million EOS tokens will be newly created to support ecosystem growth and reward stakers and block producers.
Context and Implications for the EOS Network Foundation
Under the leadership of Yves La Rose, the EOS Network Foundation was established in August 2021, following the community takeover of Block.one, the original entity behind EOS development. The foundation, now operating as a community-backed group, has crafted a new roadmap for the EOS ecosystem. EOS had raised $4 billion during its ICO between 2017 and 2018. Since its inception, the foundation has been involved in conflicts with Block.one, accusing it of not reinvesting the ICO funds into the EOS network as promised.
