EOS Co-Founder: B1 June will be “Game Changing” and “Strongly” Supports 4% Inflation Removal
Recently a proposal seeking to change the EOS annual rate of inflation from 5 percent to 1 percent has been made in March. Till now, 17,646,682 EOS have voted and every single one of them has been a
It’s An Aye
Currently, EOS has a 5% annual rate of inflation, out of which 4% is accumulated in the EOSIO.saving account while the remaining 1% is distributed to the block producers in pay for running and securing the network.
As per the proposal, as of March 5th, the EOSIO.saving account has a token balance of over 28.75 million EOS that keeps on growing every day. Additionally, about 3.6 million EOS tokens that account for 4% are created and sent to this account each month and through the compounding inflation mechanism, this number increases over time.
The original purpose of this account was for the community to decide on how to spend it but after 8 months there is no defined use yet. The proposal further shows concern that this growing pile could become an attack vector on the network.
“This proposal is therefore a request for the top 21 block producers, through a 15/21 multisig, to reduce the continuous_rate of inflation within the eosio.system contract from 5% to 1% and furthermore, to stop any EOS tokens being accumulated within the eosio.saving account by turning off the eosio.saving transfer action.”
It is highly likely that the proposal will get a go as not a single NO vote has been cast yet. The co-founder of EOS and the CTO at Block.one, Dan Larimer is also in support as he says,
“I’d strongly recommend disabling 4% and burning savings. Only increase inflation if cost of being a bp increase.”
As for increasing this rate further in the future, Larimer says it isn't an impossible task as 5% was an upper limit and though the increase may be difficult, if producers need the money or go out of business, then the inflation rate can be adjusted.
Big Things Coming Up
Apart from his strong support for the removal of 4% inflation, Larimer also shared his views on other aspects.
Back in April, Larimer had first hinted at the upcoming big announcement, this time as well he emphasized that
“b1 June will be game-changing, B1 will continue to enhance eosio.”
EOS also has a roadmap coming in June that will apparently provide what to expect from ESO in the next 6 month, 1 year and as far as 5 years.
“Just remember that often things that people don’t like isn’t our fault… government prevents us from truly delivering everything I want to. That said I’m still excited by what we can deliver,”
In terms of price, till date, in 2019, ESO is up over 88 percent while at the time of writing, the sixth largest cryptocurrency by market cap of $2.5 billion has been trading at 4.77 with 24-hours loss of 2.68 percent, as per Coinmarketcap.