EOS Blockchain Set for Major Upgrade with New Tokenomics Model

The EOS blockchain is approaching a significant upgrade, poised to bring major changes to its tokenomics model. As outlined on eosnetwork.com, the upcoming EOS System Contracts v3.4.0 release will introduce a fixed supply model and other key updates. These changes are designed to stabilize and foster predictable growth in the EOS token economy, pending approval from at least 15 of the 21 EOS block producers (BPs).

Key Proposed Changes

The proposed tokenomics model includes several important updates:

- Fixed Token Supply: The total EOS tokens will be capped at 2.1 billion.

- Token Vesting Schedules: New vesting schedules will be implemented for network custodians, including EOS Block Producers, Staking Rewards, the EOS Network Foundation (ENF), and EOS Labs.

- Immediate Token Liquidity: Funds will be allocated to purchase 35 million EOS in RAM and 315 million EOS for RAM market-making.

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

Immediate Token Liquidity

Upon the approval 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

An important 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 next part of this series will delve into the proposed transition to REX 2.0, which is expected to bring high-yield staking rewards for EOS token holders. This transition depends 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 be integrated into REX.

- Extending the REX staking lockup period from 4 days to 21 days.

Testing and Approval

The proposed changes have passed a BlockSec security audit without any critical issues. They have been thoroughly tested on Kylin and Jungle4 testnets. Community members and block producers are encouraged to engage with these new functions to ensure a smooth integration.

Acknowledging Contributors

Special thanks are given to the contributors who played crucial roles in this release, highlighting the community-driven nature of EOS blockchain development.

What’s Next?

Look forward to further detailed exploration in Part II of this series, titled “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.