As an experienced analyst in the blockchain industry, I see the recent announcement by EOS Network Foundation as a strategic move to boost adoption and incentivize participation on the EOS blockchain. The multi-million dollar staking rewards program will undoubtedly attract new investors and retain existing ones. However, the halving of staking rewards every four years is a double-edged sword – while it may help control inflationary pressures, it also risks reducing long-term incentives for stakers.EOS Network launches multi-million dollar staking rewards program.
Staking rewards will be halved every four years.
The EOS Network Foundation, which spearheads the development of the EOS blockchain, unveiled its new staking rewards initiative. This program intends to distribute approximately 250 million dollars’ worth of $EOS tokens to participants who stake their holdings. This is a component of an upgraded token economics strategy aimed at bolstering the usage of the EOS platform.
As a researcher studying the EOS blockchain, I can explain that the new staking reward system disperses 85,600 EOS tokens daily (equivalent to approximately 31 million tokens yearly) from the designated reward pool to stakeholders. The staking rewards plan is designed to be reduced by half every four years, and currently offers an Annual Percentage Yield (APY) of 50%. However, keep in mind that this APY may change depending on the amount of EOS tokens staked within the platform.
During the initial four-year phase, 125 million EOS tokens will be allocated among stakers. However, a modification in the rewards system is imminent. Instead of every four days, stakers must now wait for 21 days to become eligible for reward distributions. This lock-up period restricts token unstaking during this duration. Furthermore, EOS Block Producers (BPs) will commence receiving network fees alongside their block rewards, enhancing the incentive for infrastructure providers as network activity intensifies.
Image: EOS Network Foundation
As a researcher studying the latest developments in the EOS ecosystem, I can share that the new tokenomics proposals aim to set a cap on the total supply of EOS tokens at 2.1 billion. Additionally, these proposals introduce vesting schedules for key network entities like block producers, the EOS Network Foundation (ENF), and EOS Labs. Furthermore, the EOS Network intends to allocate approximately $315 million worth of EOS tokens for market making and liquidity provisioning purposes. This allocation will be spread across both centralized exchanges and Decentralized Finance (DeFi) platforms on multiple blockchains.
The upcoming changes to our tokenomics pave the way for further improvements on REX. For instance, we will introduce EOS staking rewards and a more adaptable allocation of system fees in the near future.
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2024-07-09 11:23