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EOS Network Foundation implements major overhaul caps token supply at 2.1B

  • EOS Network Foundation caps token supply at 2.1 billion.
  • New economic model includes 4-year halvings and support for RAM market.
  • 950 million EOS tokens to be minted for ecosystem growth and rewards.

In a groundbreaking move, the EOS Network Foundation, under the leadership of CEO Yves La Rose, has approved a community proposal to cap the total supply of EOS tokens at 2.1 billion.

This decision marks a significant shift in the network’s tokenomics, aiming to stabilize and enhance the economic model of the EOS ecosystem.

Community approval and implementation

The proposal, which gained approval from at least 15 of the 21 EOS block producers, involves burning nearly 80% of the current total EOS token supply.

This drastic reduction is primarily sourced from future emissions, effectively decreasing the maximum supply from 10 billion to 2.1 billion tokens.

Yves La Rose confirmed the community’s consensus on the proposal through a post on X, emphasizing the foundation’s commitment to a fixed token supply and reduced inflation.

Currently, the circulating supply of EOS stands at 1.15 billion tokens, accounting for 54% of the newly established cap.

To support ongoing and future ecosystem growth, the proposal also includes minting an additional 950 million EOS tokens.

The minted tokens will be allocated to various ecosystem activities, such as rewarding stakers and block producers, ensuring continued incentivization and support for network participants.

Besides the trasition to a fixed token supply and reduction of the fully diluted valuation (FDV), La Rose highlighted several other key aspects of the proposal, including scheduled halvings every four years, and enhanced RAM market support.

In general, these changes aim to foster a more predictable and sustainable economic environment for the EOS network, positioning it for long-term success and stability.

EOS Network Foundation leadership transition

It is important to note that EOS was originally the creation of Block.one and the EOS token was introduced to investors through an initial coin offering (ICO) conducted between 2017 to 2018 raising $4 billion.

However, following some allegation of Block.one not reinvesting the funds raised during the ICO back in the EOS Network development, La Rose founded the EOS Network Foundation as a non-profit organization to support the EOS Network.

By capping the token supply and implementing a series of economic reforms, the EOS Network Foundation aims to create a more robust and investor-friendly ecosystem.

The planned changes are expected to be rolled out over the coming months, ushering in what La Rose describes as a “new era for EOS.”

The post EOS Network Foundation implements major overhaul caps token supply at 2.1B appeared first on CoinJournal.

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Franklin Templeton proposes a 0.19% fee in its amended Spot Ethereum ETF S-1

  • Franklin Templeton files amended S-1 for spot Ethereum ETF with 0.19% fee.
  • SEC requires all spot Ethereum ETF issuers to file amended S-1 forms by Friday.
  • Franklin Templeton’s spot Bitcoin ETF also charges a 0.19% fee and currently manages $350M in assets.

Franklin Templeton has filed its amended S-1 form for spot Ethereum ETF following SEC’s directive that all spot Ethereum ETF issuers should send in their amended S-1 forms by Friday.

In the amended S-1, Franklin Templeton plans to charge a competitive 0.19% sponsor fee for the ETF, which is could be the lowest among its peers.

Franklin Templeton success with crypto ETFs

Franklin Templeton was among the eleven firms whose spot Bitcoin ETFs were approved by the SEC at the start of the year.

The firm’s foray into the Ethereum ETF space is buoyed by the success of its spot Bitcoin ETF, which currently manages approximately $350 million in assets. This strong performance of the Bitcoin ETF underscores the firm’s capability in managing cryptocurrency investment products and sets a promising precedent for its upcoming Ethereum ETF.

Its spot ether ETF application positions it among a growing number of financial institutions seeking to offer investors exposure to Ethereum, the second-largest cryptocurrency by market capitalization, without the need to directly purchase the digital asset.

Franklin Templeton’s aggressive crypto ETFs fee structure

Franklin Templeton’s proposed 0.19% fee mirrors the fee structure of its spot Bitcoin ETF (EZBC), which is also set at 0.19%, making it the lowest among similar financial products currently available.

Initially, Franklin Templeton did not charge any fee for investing in its spot Bitcoin ETF, a strategy likely designed to attract initial investors and build momentum.

Eric Balchunas, Bloomberg’s Senior ETF Analyst, commented on Franklin Templeton’s aggressive fee structure in a post on X saying, “The opening shot in the Eth ETF fee war has been fired from Franklin, 19bps.”

Balchunas’ comment highlights the competitive nature of the burgeoning Ethereum ETF market, where cost efficiency is a critical factor for attracting investors.

As firms rush against time to beat the Friday deadline, the stage is set for a new wave of Ethereum-based financial products to enter the market.

Although it may take a few weeks for these filings to become effective, the expectations that the ETFs could begin trading in a month’s time if not in a few weeks’ time.

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Uniswap delays protocol upgrade vote; UNI price falls 9%

  • The Uniswap Foundation announced a delay to an upgrade vote on the protocol’s fee mechanism.
  • UNI price reacted lower, declining 9% to hit lows of $10.17.

The Uniswap Foundation has postponed the governance vote on a proposal aimed at activating a new fee mechanism for the protocol. This proposal would have initiated a fee switch for Uniswap, providing for rewards to UNI token holders who stake and delegate their tokens.

As the market reacted to the news, the price of UNI fell by nearly 9% to touch lows of $10.17 across major exchanges.

Uniswap postpones key upgrade vote

Uniswap announced the fee switch proposal last week, with an on-chain deployment and vote set for today, Friday. However, this will now not go ahead as planned as per a new update.

In an update today, the Uniswap Foundation stated that the delay relates to an issue a stakeholder raised following the proposal. This has necessitated “additional diligence” on the part of the Foundation.

“Due to the immutable nature and sensitivity of our proposed upgrade, we have made the difficult decision to postpone posting this vote. This was unexpected, and we apologize for the postponement. We will keep the community apprised of any material changes and will update you all once we feel more certain about future timeframes,” the Uniswap Foundation noted via its official X account.

UNI price

The UNI token traded to highs of $11.04 on Friday before the announcement saw the token’s value tumble.

UNI price has moved lower since hitting highs of $11.79 on May 26. The RSI on the daily chart suggests bears might yet target prices around the $10 level.

With Unswap price currently changing hands around $10.26, a breakdown below the psychological level could push it to support near $8.00.

As can be seen in the chart above, UNI price fluctuated within the $6.80-$8.22 range for several days before the breakout on May 20.

The post Uniswap delays protocol upgrade vote; UNI price falls 9% appeared first on CoinJournal.