Following the EOS network’s decision to annul redundant assets, the blockchain has undergone another token burn worth at least $132 million. This action curbed supply growth by 1% and 5% annually, all determined at the protocol level. The co-founder of Block.One, Brendan Blumer told press writers that he’d been caught by surprise ahead of the token burn.
Meanwhile, the EOS community voted on the proposal in a meeting that Block.One was unaware of. Nonetheless, the decision to reduce inflation in the network has been mooted for the past few years. However, it had not gained sufficient support from voters until this year 2020.
Minting Tokens into the EOS Savings Account
Note that the EOS.Saving account accrued more token mints with each year. Once the community had voted, the network emptied the savings account into a subsequent burn of tokens. From whence, all tokens created each year will be distributed to block producers, without the need for storage.
Meanwhile, it is the second time that the EOS network is emptying its saving account. Back in 2019, a large amount of tokens had accrued. Hence the network burnt at least 34 million EOS tokens. However, the idle account seemed like a weapon for curbing potential attacks on consensus.
This is because the burnt tokens could still be used in voting and a couple of network activities. Emptying of the account also revealed the fact that an EOS account can only be held indefinitely. Which means coins lying idle for about three years and more could easily be seized. Furthermore, the community could also freeze or suspend accounts.
At the moment, the supply of EOS is slightly above 1 billion tokens. 49.95 % of which the network has locked in an eosio.stake account. A couple of whales are holding about 5 % to 10% of the total supply. In fact, the most recent voting was majorly a vote by whales and block producers.
Coinbase Announced a Degrading EOS Network
Additionally, minting the EIDOS token has mounted huge pressure on the network. Coinbase made an announcement on February 22, claiming a degradation of EOS network conditions. The announcement highlighted potentially slow transfers. On the other hand, EOS clarified the allegations with claims of supporting more than 68 million transactions a day.