LONDON (Bywire News) - EOS, the next generation blockchain designed for the fast-evolving world of digital currencies, is continuing to make a name for itself despite initially facing scepticism due to its highly publicised $4.1bn initial coin offering (ICO) six years ago. In an interview with Real Vision, Yves La Rose, CEO of EOS Network Foundation, shared his insights into the growth of the EOS network, its core principles, and its unique approach towards scalability and tokenomics that set it apart from other blockchain platforms.
Although EOS has often been compared with other third-generation blockchain networks like Cardano and Solana, what truly differentiates EOS is its emphasis on scalability. Recognising that real-world use cases required the ability to handle a massive amount of throughput, EOS was developed to offer low-cost, high-reliability blockchain performance. This is achieved through a unique system of no transaction fees for sending or receiving tokens, something unheard of in the world of blockchain.
The EOS network's inflationary tokenomics has occasionally drawn criticism from those opposed to the idea of infinite inflation. However, La Rose explains that the EOS network has always been responsible in its approach to inflation management, ensuring that tokens are only issued when there is an actual need and mechanism to utilise them. The network initially launched with 5% inflation, of which 1% went to block producers and 4% went into a savings fund. Following the creation of the EOS Network Foundation, this inflation rate was raised to 2% to fund ongoing development efforts.
The EOS token has experienced significant fluctuations in value since its inception, and La Rose acknowledges that the high expectations set by the network's ICO may have been partially responsible for this. However, he also highlights the disalignment of incentives between Block.one, the company that conducted the ICO, and the EOS community itself, which eventually led to the creation of the EOS Network Foundation to address these issues.
Today, the EOS network is thriving in terms of use cases and transaction volume, particularly in the realm of game tokens and non-fungible tokens (NFTs). As La Rose explains, the network's ability to handle high-quantity, low-value transactions has made it an ideal platform for developers working on projects with high levels of user engagement. He pointed to the example of Upland, a popular EOS-based game with around 50,000 daily active users who regularly trade in-game items and perform other low-value transactions.
The EOS network has evolved significantly since its early days, with increasing decentralisation and community involvement in governance leading to regular upgrades and improvements to its core technology. While the network's future trajectory remains unclear, its emphasis on scalability, low fees, and advanced tokenomics suggests that it may well become a major player in the world of blockchain technology for years to come.
(Writing by Michael O'Sullivan)