EOS coin holders voted on whether to reduce the inflation from 5% to 1% per year.
EOS holders voted to reduce the annual inflation rate from 5% to 1% as of June 1, according to data on the voting platform maintained by EOS Block Producer (BP) EOS Authority.
According to the poll’s description, out of the current 5% of annual EOS inflation, 4% is being accumulated in the eosio.saving account while 1% is distributed among BPs in exchange for network maintenance. About 3.6 million EOS are reportedly created and sent to this on-chain account every month, and this number increases due to compound inflation mechanisms.
The original purpose of accumulating funds on the aforementioned account was allegedly to have the community vote on how to spend it or even burn it. Still, the proposal claims:
“However, 8 months have past and there is still no defined use for this large quantity of EOS tokens that continues to flow into the eosio.saving account. This large quantity of accumulated tokens has now become excessive and if we continue to allow it to keep growing, it will eventually become an attack vector for the network.”
The author of the proposal description notes that “it is therefore time to turn the tap off and reduce the level of inflation down.” Lastly, the text also notes that the implementation of the new inflation rate would have no effect on the earnings of the Block Producers:
“The 1% rate of inflation going to block producers (0.25%+0.75%) will remain unchanged.”
At press time, 100% of the 778 account that staked about 27.3 million EOS have been cast in favor of reducing the inflation.
As Cointelegraph reported on June 2, EOS parent company Block.one has announced a blockchain-based social media platform called Voice.
MakerDAO has seen a series of votes to change the so-called stability fee for its Ethereum blockchain-based decentralized stablecoin DAI, most recently lowering it by 2%.
