EOS Authority Proposal Opts To Modify The Annual Inflation Rate, Dropping It From 5% To 1%
EOS Network To Reduce Inflation Rate From 5 % To 1%
EOS, a blockchain-based, decentralized system that enables the development and hosting of decentralized applications (dApps), is considering reducing its present inflation rate from 5% down to 1%, to reduce the accumulation of unnecessary tokens in the protocol’s savings account.
EOS authority, that deals professionally with technical issues of arbitration and governance on the EOS network, is currently conducting a poll to decide on the issue, with a majority of the voters voting ‘Yes’ to the inflation drop.
This online poll was done in order to meet the needs of EOS users. The EOS network, a competitor of the Ethereum blockchain, wants its users to decide on whether the platform should drop its yearly inflation rate on its EOS token.
Inflation In Cryptocurrency Economics
This official poll is to decide on the drop from a 5% to 1% annual inflation rate. Inflation in cryptocurrency economics is quite common even BTC (Bitcoin) has gradually reduced its inflation rates, but only a few blockchain protocols have fixed inflation rates.
As stated by EOS, the eos.io savings account receives the accumulated 4% of the 5% inflation. The remaining 1% is used to fund Block Producers and Standby Block Producers for securing and running the network. The inflation balance is left to the EOS community on how it will be spent.
Inflation Drop Inclination In Votes
As at the 6th of May, over 17 million votes have been cast through about 380 EOS accounts. This means there is a participation rate of 1.7%, with many inclined to the dropping of the annual inflation rate.
Although the EOS network community does not have the authority to destroy the coin if no consensus on its use is reached, the firm has stated that it has been over 8 months since the last time any decision on the use of the account has been made.
EOS Growth And Future
Since the inflation rates were introduced, over 170 million USD worth of EOS (about 35 million EOS) have been accumulated in the EOS savings account (eos.io). This, however, increases every day, as about 3.6 million EOS are added to the eos.io savings account monthly.
EOS has decided to limit the amount of the asset that is added in this account, by a reduction in its inflation rate, until the EOS community has decided on a purpose of the eos.io savings account tokens. This is in accordance with the basic terms of the EOS network, that it's users determines whatever happens on the EOS network.
EOS Authority Polls Stats And Expiration
The EOS authority poll has been live for 60 days and will end on the 1st of June, with less than 400 participants and a ‘Yes’ vote majority for the inflation reduction. The ‘No’ votes low numbers have since barely changed.
EOS stated that on the expiration of the poll, the rate of EOS inflation will be reduced through a 15/21 multisig, stopping the eos.io savings transfer action which will then stop any more EOS tokens from being accumulated in the savings account.
The EOS proposal stated that the 1% to fund Block Producers will not be changed, they also said this will reduce the risk of attack on a networks savings account.
Unresolved EOS Issue
It's important to note that the issue of uncertainty on what to do with the previously accumulated funds in the eos.io savings account, will still be unresolved even after the expiration of the poll.