EOS Holders Voted To Reduce The Annual Inflation Rate From 5% To 1%

The EOS holders managed to reduce the annual inflation rate from 5% to 1%, the latest cryptocurrency news show. According to data found on the voting platform that is maintained by the EOS Block Producer (BP) EOS Authority, the reduction is official.

The poll’s description shows that out of the current 5% of the annual EOS inflation, 4% is being accumulated in the eosio.saving account while the 1% is distributed among BPs in exchange for network maintenance. The EOS holders managed to drop this rate down.

On top of this, about 3.6 million EOS are created and sent to this on-chain account every month – a number which is increasing due to compound inflation mechanisms. The official proposal which was featured in the coming altcoin news shows that 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.

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.”

What’s also noted by the author of this proposal is that “it is time to turn the tap off and reduce the level of inflation down.” Lastly, the EOS holders note that the implementation of the new inflation rate would have no effect on the earnings of the Block Procedure. As the proposal claims:

“The 1% rate of inflation going to block producers (0.25%+0.75%) will remain unchanged.”

Many best cryptocurrency news sites are reporting that at press time, 100% of the 778 EOS holders accounts that staked about 27.3 million in EOS have been cast in favor of reducing the inflation.

As we reported a while ago, the EOS parent company Block.one recently announced a blockchain based social media platform Voice.

Meanwhile, in comparison with other coins and altcoin news, we can see that MakerDAO has seen a series of votes to change the so-called stability fee for its Ethereum blockchain based decentralized stablecoin DAI, lowering it by 2% in the most recent attempt.