The EOS Network announced a significant overhaul of its staking rewards program, allocating $127 million worth of EOS tokens to incentivize participation. This initiative, unveiled on July 8, 2024, aims to bolster the network’s ecosystem and attract early adopters through a revamped tokenomics structure and extended lock-up periods.
Under the new program, participants who stake their EOS tokens will receive daily distributions. The initial daily allocation is set at a generous 85,600 EOS tokens, translating to an attractive Annual Percentage Yield (APY) exceeding 60%. However, the EOS Network team emphasizes that the APY will dynamically adjust based on staking activity, meaning it can fluctuate as more users participate or withdraw their holdings.
A key change involves the introduction of REX tokens. Stakers will receive REX in exchange for their locked EOS. These REX tokens serve as an accounting mechanism within the system.
Another significant alteration is the extended lock-up period. Previously, staked tokens were locked for four days. The revised program enforces a 21-day lock-up, potentially fostering greater stability within the staking environment.
“The updated EOS staking program is designed to provide sustainable rewards for participants and support ecosystem growth,” stated the EOS Network team in a blog post.
This revamped staking program comes on the heels of another critical decision by the EOS Network community. In May 2024, a proposal to limit the total EOS supply to 2.1 billion tokens received overwhelming approval. This move effectively burns nearly 80% of the initial supply, primarily targeting future token emissions. The EOS Network transitions from an originally planned total supply of 10 billion to a fixed, capped amount.
Established in 2017 by Block.one, EOS garnered significant attention through a record-breaking $4 billion Initial Coin Offering (ICO). However, the network’s journey hasn’t been without controversy. Disputes arose between the EOS Network Foundation and Block.one, with allegations that Block.one failed to fulfill promises of reinvesting ICO funds back into the network.
The revamped staking rewards program and the capped token supply represent a strategic shift for the EOS Network. By offering substantial incentives for early adopters and fostering a more stable staking environment, the network aims to reignite interest and propel its ecosystem forward. The success of this initiative will depend on how effectively it attracts new participants and retains existing stakeholders.