EOS Polls Show Overwhelming Support for Slashed Inflation Rate
The poll comes as a result of the excess inflation rate accumulated over time on the platform’s account.
EOS Community Votes for 1% Inflation Rate
With a current annual inflation rate of five percent, four percent of that inflation rate was sent to the eosio.saving account, while one percent went to block producers (BP) who run the network. With 3.6 million EOS tokens stored monthly on the account, March 2019 saw a total of 28.75 million EOS tokens.
Furthermore, the figure has steadily increased due to compounding inflation, which could make the network vulnerable to hackers.
Giving the reason for the proposal, the publication stated:
“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. It is therefore time to turn the tap off and reduce the level of inflation down from an unnecessarily high 5% to a more reasonable 1% by cutting out the 4% that’s being generated and sent to the eosio.saving account.”
The smart contract platform then opened an online poll 88 days prior, to determine if holders were in favor of the reduction in the annual inflation rate, or against the proposal.
After nearly three months since the beginning of the polls, the results revealed that out of 778 EOS accounts, only 2.7 percent participated. Furthermore, the community was generally in favor of a reduction to one percent, following a 100 percent approval.
The implication of the community’s agreement to slash inflation rate means that it might diminish the incentive for hackers to attack the network.
Cashing in on the Buzz
However, the publication maintains that a one percent inflation rate reserved for block producers remains. Thus, the community might need to compromise and set the rate at above one percent to preserve the incentive for block producers.
As recently reported by BTCManager, Block.one announced plans to launch a blockchain-based social media platform, Voice, that would run on the EOS blockchain.
Also, the controversial stablecoin Tether (USDT) revealed its intentions to launch on the EOS blockchain platform. Furthermore, the largest cryptocurrency exchange platform in the U.S., Coinbase announced towards the end of May 2019 that addition of EOS on its platform.
Back in March 2019, a cryptocurrency ranking released by the Center for Information and Industry Development (CCID) in China showing the top ten cryptos placed EOS as the number one virtual coin.