EOS Investors Decide on New Inflation Rate, Dropping From 5% To 1% per EOS Authority Platform
EOS is a blockchain-based, decentralized system that enables the development and hosting of decentralized applications (dApps) using the EOS coin.
As at 1st of June 2019, the polls carried out by EOS authority were concluded with EOS holders voting to drop the annual inflation rate from 5% down to 1%.
EOS.IO Savings Account Distribution
According to EOS authority, 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.
This eos.io savings account accumulates about 3.6 million EOS per month and the figure continues to increase with the inflation rate.
The purpose of the accumulated funds in the eos.io savings account was originally to be left to the EOS community to determine what was to be done with it.
However, there has been no news on what is to be done with the already accumulated funds in the eos.io savings account.
Risk of Attack On the Network
The EOS authority proposal stated :
“However, 8 months have past and there is still no defined use for this large quantity of EOS tokens that continues to flow into the eosio.saving account. This large quantity of accumulated tokens has now become excessive and if we continue to allow it to keep growing, it will eventually become an attack vector for the network.”
In addition they noted that
“it is therefore time to turn the tap off and reduce the level of inflation down”.
Zero Effect On Block Producers Earnings
Further, they stated that this inflation drop will not affect the Block Producers earnings in any way
“The 1% rate of inflation going to block producers (0.25%+0.75%) will remain unchanged.”
At the moment, 100% of the 778 EOS accounts that staked approximately 27.3 million EOS voted in favor of dropping the inflation rate.
Also votes have been made for MakerDAO to reduce its ‘stability fee' on its Ethereum based stablecoin DAI.
Block.one, the parent company of EOS, recently announced the launch of a blockchain based social media platform dubbed ‘Voice'
EOS Live Price
1 EOS/USD =$3.6706 change ~ -6.25%
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