EOS developers have allocated 250 million tokens for updated staking program

What’s new? The developers of the EOS blockchain have launched the EOS native token staking rewards program as part of their tokenomics upgrade plan. A total of 250 million coins have been allocated to it, and 85 600 EOS will be distributed to participants every day. The program is aimed at early entrants, with initial returns exceeding 60% on the APY model.

Developer blog

What else is known? The updated staking program is designed to provide sustainable rewards for participation in keeping the network running and thus stimulate the growth of the ecosystem. It is specified that over 31,2 million EOS will be distributed to stakers annually.

The blocking period of coins was also changed: it was increased from 4 to 21 days. For the production of blocks, participants, in addition to rewards, will receive a portion of network fees. Developers note that this will attract infrastructure providers as demand for network usage grows.

In late May, the blockchain community supported the idea of lowering the limit on the total supply of EOS from 10 to 2,1 billion coins. The initiative will phase out 80% of excess tokens.

EOS is a blockchain with support for smart contracts and Delegated Proof-of-Stake (DPoS) consensus mechanism. Launched in 2018, it raised $4 billion in an initial coin offering (ICO). The native token is needed to purchase computing resources when running decentralized applications (DApps).

Early last year, the EOS team began implementing EOS Network Foundation CEO Yves La Rose’s plan to revitalize network activity and attract new developers to the ecosystem.

For example, support for the Ethereum Virtual Machine (EVM) was added, allowing applications based on the Solidity programming language used by the Ethereum blockchain to be created in EOS. It also launched a grant program for developers for amounts up to $50 000.

Last April, market maker DWF Labs invested $60 million in EOS, after which the project’s native token rate reached a local high. DWF has allocated $45 million for the purchase of EOS tokens, and another $15 million directed to the funding of ecosystem projects.

At the time of writing the news, EOS ranks 75th in the overall ranking of cryptocurrencies with a capitalization of over $1 billion and is trading at $0,5084, having added 1,8% over the day. The weekly drop was 12%, and the asset has lost 40% since the beginning of the year.

In June, Tether announced that it was ending EOS support for its USDT stablecoin, which ranks third in the overall cryptocurrency ranking with a capitalization of $112,3 billion.