EOS ended the week bullish. What is behind the price explosion of over 100 percent at times?
At the end of the week, many EOS holders rejoiced when they looked at the crypto charts. The token of the smart contract platform EOS.IO almost doubled in price within two days. The lightning rally started at $ 6.35 (USD) on May 4 and catapulted EOS to $ 11.5 by May 6. Price gains, as you saw last at Dogecoin. What is behind the EOS price explosion?
Some see the new proposal to adjust staking rewards as the reason for the outbreak of the EOS course. It was made by EOS.IO creator Block.One. Together with the blockchain consulting firm Prism Group, the company has a Whitepaper that introduces some fundamental changes to the staking model of the network.
Higher inflation and participation of EOS holders
The most important innovation proposed by the new whitepaper is an adjustment of the inflation rate for EOS. So far, this has been one percent per year, whereby only the selected block producers and block producers who are on “stand-by” receive freshly “minted” tokens. The Prism Group is proposing an increase in the inflation rate to 1.2 to 3.6 percent. This should also create an incentive for those network participants who only delegate their tokens to block producers. Specifically, block producers should receive at least 32 percent of the tokens distributed, the rest should go to the stakers who voted for block producers with their tokens.
Now, the prospect of greater staker participation may have contributed to the late week’s jump. The crypto medium Cointelegraph speculated for example about it. However, the proposal, which the community has to vote on anyway, has been around since then April 21 through the EOS sphere. That the price explosion timed with a Re-tweet Correlated by Block.One, in which the whitepaper is presented, therefore seems to be more a matter of chance. Given the recent profit-taking, it looks more like a flash in the pan than a sustained rally at press time.
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