Holders of EOS vote to reduce annual inflation from 5% to 1%



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The incumbents of EOS have voted in favor of a reduction of the annual inflation rate of 5% to 1% as of June 1, according to the data of the platform of vote managed by EOS Block Producer (BP), the EOS Authority.

According to the survey description, of the current 5% of annual EOS inflation, 4% is accumulated on the eosio.saving account, while 1% is distributed among third parties in exchange for network maintenance. About 3.6 million EOS would be created and sent each month to this chain account, and this number is increasing due to compound inflation mechanisms.

The original purpose of the accumulation of funds on the aforementioned account was allegedly to have the community vote on how to spend it or even burn it. Yet the proposal says:

"However, eight months have elapsed and no defined use of this large amount of EOS tokens has been defined, which continues to flow in the eosio.saving account. This large amount of accumulated chips has now become excessive and if we continue to allow it to continue to grow, it will eventually become a vector of attack for the network. "

The author of the proposal description notes that "it is time to turn off the tap and reduce the level of inflation." Finally, the text also states that the implementation of the new inflation rate would have no effect on the company's income. Block producers:

"The 1% inflation rate allocated to block producers (0.25% + 0.75%) will remain unchanged."

At the time of the press, 100% of the 778 accounts representing about 27.3 million EOS were cast in favor of a reduction in inflation.

As mentioned by Cointelegraph on June 2, the parent company of EOS, Block.one, announced the creation of a social media platform based on a chain of blocks, called Voice.

MakerDAO obtained a series of votes to modify the so-called stability tax for its decentralized unit based on Ethereum's Ethereum blockchain, the most recently reduced by 2%.

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