34 Million EOS Officially Burned as Inflation Reduction of 5% to 1% Receives Overwhelming Support

  • $167 million has been burned but inflation remains the same
  • Inflation reduction from 5 to 1% initiative receives overwhelming support

    More than 34 million EOS worth $167 million has been approved by 15 active Block Producers to be officially burned from the EOSIO savings account. According to EOS Go, this has been successfully executed.

    Recently we shared about the initiative to reduce the EOS inflation from 5 percent to 1 percent has been made where not just majority but all the EOS token holders have been in the agreement of this initiative.

However, the proposal does not affect the future contribution of tokens into this account and for now, EOS mainnet inflation remains 5 percent.

What’s The Point?

Per the proposal “Retire current accumulated EOS tokens in the eosio.saving account,” 29 accounts and 5,082,427 EOS has voted where Yes has a 99% lead on the No’s.

However, the community is not exactly happy as the inflation rate hasn’t been lowered as one Redditor says,

“That's nice, but unless we get rid of the 4% inflation, this Burning EOS ^TM event will have to be repeated each year. Maybe that's the plan for now?”

While another one believes the burned ESO could have been used for the development,

“basically the amt of EOS in existence is so high over its actual utility that burning this amount doesn't matter and was likely a poor decision … could have sold it and used for community development.”

Meanwhile, the initiative made by the community had specifically called for the reduction of the inflation rate as the $3.6 million EOS that are minted and sent to EOSIO saving account each month are not serving any purpose.

This initiative has been receiving overwhelming support with 100 percent votes in favor of reducing the inflation while keeping 1 percent that is distributed to block producers. On May 7th, the initiative had started and by now 25,167,759 EOS voted has been cast. The proposal will close at the end of this month.

Nothing On Price!

The reduction in the circulating supply is of advantage for the EOS tokens holders as by the law of supply and demand, each token now represents a greater value.

However, this has some wondering why this has no effect on the price,

“EOS just became a lot more scarce, plus we have REX now! How the EOS price is so indifferent to developments like this is beyond me..”

At the time of writing, the 6th largest cryptocurrency by market cap has been trading at $4.86 with 24-hours gains of 0.21 percent. Since hitting $5.9 in early April, EOS/USD has yet to recover.

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