EOS Reduces Inflation by 80% And Burns $100 Million Worth of Tokens
- EOS inflation goes down from 5% to 1%, lower than Bitcoin and Ethereum
- “If EOS isn’t decentralized, nothing is. And if nothing is decentralized, EOS is still aligned” – Brendan Blumer, CEO of Block.One, the company behind EOS
EOS network’s inflation was voted to be reduced by 80%, announced Brendan Blumer, CEO of Block.One, the company behind EOS on Feb 25. With this cut-down, its inflation rate has gone down from 5% to 1%.
“Wow! I woke up today to find that a proposal to reduce EOS network inflation from 5% to 1% had been proposed and passed by the community overnight,” said Blumer.
Today the currently-elected #EOS BP’s eliminated 80% of network inflation, burnt over 100m USD of tokens, and demonstrated that they are representatives of the community that elect them and give them their power. This is decentralization at its best. 🔥
— Brendan Blumer (@BrendanBlumer) February 25, 2020
EOS’s Inflation Lower than Bitcoin and Ethereum
In most of the public blockchains, new tokens are created and issued to those who operate the network. These tokens are usually sold to pay for network operation which contributes to the downward sell pressure on the price of the token, explained Blumer.
Blumer further shared that with this proposal approval, EOS at 1% inflation, which means that $40 million are needed to maintain current prices. Which puts it much lower than Bitcoin’s 3.6% that would require new $6.14 billion to maintain the digital asset’s current prices.
Ethereum’s inflation is much higher at 5%, as per him, that needs $750 million to keep its current prices. “ETH miners increased their rewards this January. Token holders had no say in the matter,” he added.
Meanwhile, the EOS network’s inflation is “effectively further reduced with voter rewards.” When the Block Producers’ of the network gives token holders revenue for their vote, it lowers the cost of network operation by passing value back to holders. This, he said, is identical to mining pools but the value here is going to those who “deserve” it.
If EOS isn’t decentralized, nothing is
According to Blumer, this successful voting to reduce the inflation rate considerably is the “power of decentralized governance, and networks designed to operate in the best interest of their holders.”
However, not everyone agrees as Su Zhu, CEO of Three Arrows Capital commented, “I think the words overnight and decentralized are juxtapositioned a bit too closely.” But, of course, Blumer is steadfast in his belief, as a matter of fact, he believes,
“If EOS isn’t decentralized, nothing is. And if nothing is decentralized, EOS is still aligned.”
The eight largest cryptocurrency meanwhile, is currently trading at $3.86, down 7.38% in the past 24 hours, along with the rest of the market.
- EOS Suffers “Major Outage” on Coinbase as Network Performance Issues Arise
- Block.One To Lure Ethereum Developers To EOS With $200k ‘EOSIO Smart Contract Challenge'