eos token burn
Cryptocurrency

34 Million EOS Tokens Burned as Per the Proposal by EOS Nation

513views

On the 22nd of April 2019, prominent EOS block producer, EOS Nation, made a proposal to burn’ over 34 million EOS tokens.The proposal was accepted by the their fellow block producers shortly after. Today, May 8th 2019, the proposed transaction was executed, and the ‘eosio.saving’ account sent 34,171,037.4625 EOS tokens, to the ‘eosio account (see transaction).

The proposal was the result of a combination of the EOS inflation model being questioned by the current crop of EOS block producers, and the fact that it was initially planned to fund the EOS Worker Proposal System (WPS).

Current inflation rates see a total of 5% being split 1% to the block producers and 4% being sent to the WPS. The WPS is an idea which was proposed in the EOS white paper and hints towards a system which uses inflation to pay block producers and developers for their work. However it was overwhelmingly voted down in the most recent referendum (see here) and it often splits opinion.

As many members of the EOS community are already aware, Dan Larimer, creator of the EOS blockchain, can often be found in the public EOS chat room having discussion with the community. Regarding the eosio.saving account and EOS inflation, he has personally stated that he agrees with the token burn. He also stated that he believes that the total inflation model should be changed so that the WPS is not in receipt of the current 4%.

“I’d strongly recommend disabling 4% and burning savings. Only increase inflation if cost of being a bp increase.”

Whether or not you are an EOS token holder this event should be seen as a positive one as it is an example of a blockchain governing itself. While there may be questions regarding the DPOS system and the effects which whales have on them, the fact an idea was proposed, voted on and then implemented should be noted.

Love, peace and happiness.