EOS Labs and ENF, the primary stewards of the EOS Network, have announced a strategic partnership with EOS Stablecoin Chain (ESCC), an Ethereum (ETH) based stablecoin solution provider.

The EOS community has recently given the green light to a significant proposal to cap the total supply of its native token at 2.1 billion. This decision marks a pivotal moment for the blockchain, as it introduces a fixed limit on the number of EOS tokens, addressing long-standing concerns about inflation and token supply.

80% of the Excess EOS Token Supply to Be Burned

Yves La Rose, CEO of the EOS Network Foundation, explained that the proposal entails burning 80% of the current excess supply of tokens. This means that a substantial portion of the existing tokens will be permanently removed from circulation, effectively reducing the total supply and potentially increasing the value of the remaining tokens.

The proposal received widespread support from the EOS community, especially from block producers, who play a crucial role in the network's governance. However, the update will not take effect until a few months later.

Earlier, the organization proposed a multi-signature system to establish this fixed amount, receiving endorsement from 15 of the 21 EOS block producers. Currently, EOS has 1.15 billion tokens in circulation, accounting for 54% of the total intended supply.

Additionally, the open-source blockchain platform recently announced a significant overhaul of its EOS blockchain, involving key updates to its tokenomics. The new model also introduces token vesting schedules for network custodians, including EOS Block Producers, Staking Rewards, the EOS Network Foundation (ENF), and EOS Labs.

Further Development on the EOS Network

In late 2023, EOS Labs and ENF, the main stewards of the EOS Network, collaborated with EOS Stablecoin Chain (ESCC), an Ethereum (ETH) based stablecoin solution provider. According to the partnership details, the three entities aim to integrate an optimized platform for high-speed compliant stablecoin transactions.

Their goal is to offer EOS users a specialized and efficient solution for handling stablecoin transactions, making them faster, more cost-effective, and compliant with regulations. In addition to facilitating transactions, ESCC's partnership with the EOS Network introduces open and regulated stablecoin environments, including know-your-customer (KYC) processes.

The EOS Network Foundation has been strategically positioning itself for growth. In April 2023, it secured regulatory approval to trade EOS tokens on regulated cryptocurrency exchanges in Japan. This approval from the Japan Virtual and Crypto Asset Exchange Association (JVCEA) marked a significant step for EOS adoption.

During the same month, EOS Network Ventures (ENV) allocated $20 million to support developers building apps and games on the network, contributing to the growth of its Decentralized Finance (DeFi) ecosystem and resulting in a surge in locked value for EOS-built projects.