EOS Holders Vote to Reduce the Annual Inflation From 5% to 1%

[Mercury]

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%.

Source

[Niteroy]

Reducing EOS inflation to 1% is a positive decision and it should positively affect the price of EOS in the long term. I think it was necessary to reduce inflation last year, then the price of EOS was better opposed to the bear trend.

[IyemRoker]

It should be like that because if the inflation rises to 5%, the EOS coin supply will continue to disappear or get less.
Maybe in my opinion it is certain that inflation is not an increase in prices but decreases the price of EOS coins due to market effects that are so strong that they cannot hold FUD.

[jonathancool220]

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Likewise with inflation for the country, if the country experiences inflation, the country will experience financial difficulties such as in Zimbabwe.
As with EOS, if the EOS inflation is reduced then it is the best choice to seek profits from EOS.

[Gravatai]

It is not yet noticeable that this news will affect the price of EOS. Perhaps in the long run it will be more noticeable, but in general, of course, it’s great that inflation has decreased and will be only 1%, which is a big plus for the entire EOS community and the project as a whole.

[damsix]

it’s great that inflation has decreased and will be only 1%, which is a big plus for the entire EOS community and the project as a whole.

Good game bro and this is the best choice for EOS because EOS must continue to exist in a cryptocurrency environment.
I am sure also with such conditions (only 1%) for the increase in EOS prices, I make sure that it is not a bad thing because that 1% is a profit that can be obtained from a Bearish market.

[zendicator]

Eos is a great project and in fact im holding a lot of bags. The voting of reduction of inflatio. From 5% to 1% per year, relieves me that the price of eos will not be dump hard. I know some projects that dump hard is hardly to recover. A staggard increase in supply will be a good choice for the community. Hoping to have some positive results soon. EOS to the moon!

[kent47400]

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I'm sure you are a true trader for EOS because you say you have a lot of EOS in your bag.
Then for this 5% scale if we have tens of thousands of EOS coins, the price can multiply and the profits will be very large.
Maybe it can be calculated to get a profit of around 100 USD / month without trading.