The EOS community recently greenlit a significant proposal to limit the total supply of the protocol’s native token to 2.1 billion. This decision marks a crucial moment for the blockchain by implementing a fixed cap on the number of EOS tokens, addressing longstanding concerns regarding inflation and token supply.

According to Yves La Rose, CEO of the EOS Network Foundation, the proposal entails burning 80% of the current excess token supply. This action will permanently remove a significant portion of existing tokens from circulation, effectively reducing the total supply and potentially boosting the value of the remaining tokens. The proposal garnered widespread support from the EOS community, particularly from block producers who play a crucial role in the network’s governance. However, the update will not take effect for several months.

Previously, the organization proposed a multi-signature system to establish this fixed amount and received backing from 15 of the 21 EOS block producers. Presently, EOS has 1.15 billion tokens in circulation, constituting 54% of the total intended supply.

Additionally, the EOS blockchain recently announced a significant overhaul through essential updates to its tokenomics. The new model introduces token vesting schedules for network custodians, including EOS Block Producers, Staking Rewards, the EOS Network Foundation (ENF), and EOS Labs.

Further developments on the EOS Network include a strategic collaboration announced late last year between EOS Labs, ENF, and EOS Stablecoin Chain (ESCC), an Ethereum-based stablecoin solution provider. Together, they aim to integrate an optimized platform for high-speed compliant stablecoin transactions, offering EOS users a specialized and efficient solution for handling stablecoin transactions that are faster, more cost-effective, and regulatory compliant. Additionally, the partnership introduces open and regulated stablecoin environments, including know-your-customer (KYC) processes.

The EOS Network Foundation has been strategically positioning itself for growth, securing regulatory approval in April 2023 to trade EOS tokens on regulated cryptocurrency exchanges in Japan. The approval from the Japan Virtual and Crypto Asset Exchange Association (JVCEA), the regulatory body overseeing crypto trading safety, marked a significant milestone for EOS adoption. Additionally, in the same month, EOS Network Ventures (ENV) allocated $20 million to support developers building apps and games on the network, which contributed to the growth of the network’s Decentralized Finance (DeFi) ecosystem, leading to an increase in locked value for EOS-built projects.