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EOS Looked to Lower Annual Inflation Rate From 5% to 1%

By Chris Torres | June 4, 2019
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EOS Looked to Lower Annual Inflation Rate From 5% to 1%

EOS is planning on lowering the annual inflation rate, from 5% to 1%, following the result of an official poll held among the holders on June 1st. The news was revealed via the EOS Block Producer (BP) EOS Authority voting platform.

Specifically, in an attempt to provide the best services for its customer, EOS has launched an online poll, where its holders will vote whether or not to decrease the current annual rate, from 5 to 1 percent.

According to the information provided by EOS, the majority amount of the existing EOS yearly inflation – about 4% – is accumulated in the saving account of EOS. Only 1% of the total 5% is assigned to Block Producers to handle upgrading and maintaining the system. Said account store an amount of 3.6 million newly created EOS on a monthly basis, a number currently on the rise due to compound inflation mechanisms.

The annual inflation fund was gathered to one place – the above-mentioned saving account – so that EOS holders can decide what to do with the fund, invest it somewhere else or get rid of it.

“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.”

Currently, all 778 accounts, which take up to 27.3 million EOS – have voted in favor of bringing down the inflation rate.

As reported by The Crypto Sight yesterday, Block.one, the multibillion-dollar parent company of EOS, has recently introduced a social media platform named Voice, backed by blockchain technology.

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