The annual inflation rate has dropped from 5% to 1%. Is the new EOS proposal reasonable?

According to the voting platform data maintained by the EOS Authority EOS Authority, as of June 1, most EOS holders supported the annual inflation rate from 5% to 1%.

Of the current EOS 5% annual inflation rate, 4% was deposited in the eosio.saving account, and another 1% was assigned to the block producer (BP) to maintain the network. About 3.6 million EOSs are created and sent to this online account each month, and this number is increasing due to the compound inflation mechanism.

The initial purpose of accumulating funds in this account is to let the community vote, choose how to spend it, and even destroy it.

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The proposal states:

“However, after 8 months, there is still no clear use for EOS tokens that continue to flow into the eosio.saving account. Such a large amount of token accumulation has been excessive, and if left to let it grow, it will eventually become a network. Attack vector."

The author of the proposal pointed out, “Therefore, it is time to turn off this 'faucet' and reduce the inflation level from an unnecessarily high 5% to a more reasonable 1%.” Finally, the proposal also pointed out that the new inflation rate will not be correct. BP's revenue has an impact.

“The block producers will continue to receive their block production incentives through 1% inflation.”

As of press time, the number of accounts participating in this voting reached 778. These accounts have a total of 27.3 million EOS pledges, and the account supporting the reduction of inflation rate is 100%.

According to Babbitt's live report , on June 2, 2019, Block.one held a press conference in Washington, DC, and released three new products: Coinbase Earn, an EOS education project launched in cooperation with Coinbase, and a hardware private key jointly launched with Yubico. YubiKey, and the highlight of this conference – the social media application Voice.

It can be seen that the influence of EOS in the community is growing, and the large amount of tokens in the eosio.saving account will inevitably make users feel worried.

In addition to being an attack vector, the proposal also argues that “this kind of inflation without any purpose or explicit use will cause all long-term EOS token holders to suffer unnecessary dilution of value.”

Should EOS reduce the annual inflation rate? What do you think?

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