The EOS ecosystem has reached a consensus to adopt a new tokenomics model, marking what the EOS Network Foundation (ENF) calls a “new era” for tokenholders and developers. On May 31, the ENF announced a significant shift from an inflationary token supply to a fixed supply model.

EOS will transition from a potential maximum of 10 billion EOS tokens to a fixed supply of 2.1 billion tokens, aiming to address inflation concerns within the network. The new model introduces four-year halving cycles, akin to those in Bitcoin, to manage token distribution more sustainably. The ENF will also implement high-yield staking rewards with lockup periods, although specific yield rates have not been disclosed yet. Additionally, 350 million EOS tokens will be allocated to the RAM Market, enabling developers and users to purchase RAM (Random Access Memory) necessary for deploying and running applications on the network.

Despite the ambitious changes, the announcement has been met with skepticism within the crypto community. A pseudonymous user, Xalytics, expressed confusion on X (formerly Twitter), highlighting lingering doubts among long-term holders about the utility of the new RAM market feature. In response to the news, EOS is trading at $0.80, remaining stable over the last 24 hours but down 21.6% since its initial launch, according to CoinMarketCap.

EOS initially garnered significant attention with the largest initial coin offering (ICO) in the crypto industry's history. Block.one, the company behind EOS at the time, raised a staggering $4.1 billion in 2018. However, the aftermath involved unmet expectations, legal disputes, and regulatory challenges.

In 2019, Block.one settled with the U.S. Securities and Exchange Commission (SEC) for $24 million for conducting an unregistered securities offering during its ICO. In 2021, Block.one settled a class-action lawsuit for $27.5 million. The lawsuit, filed by the Crypto Assets Opportunity Fund, accused Block.one of misrepresentations during the ICO, including a false promise to invest an additional $1 billion in the EOS network.

In 2021, the EOS community took steps to regain control from Block.one, which was seen as not fulfilling its promises. Yves La Rose, an original block producer, became the foundation's founder and CEO. La Rose described the new tokenomics as “a landmark occasion for the EOS community,” emphasizing that this strategic overhaul is designed to stabilize the token economy and incentivize active participation and growth within the network.

EOS, a layer-1 blockchain once touted as an “Ethereum killer,” is undergoing significant changes to revitalize its ecosystem. While the community’s reaction has been mixed, the new tokenomics model represents a concerted effort to address past challenges and pave the way for future growth and stability.