EOS is the native cryptocurrency of the EOS platform that supports the EOSIO blockchain platform. EOS was announced by the blockchain incubation and investment firm Block.one in 2017 and released as open source software in June 2018. As described in the EOS white paper, the project was launched to create decentralized applications (dapps) with a focus on efficiency and scalability.
EOS holds the record for the largest Initial Coin Offering (ICO) to date. As of June 2017, Block.one hosted a one-year ICO for EOS and raised a record 7.12 million ETH, the native token of the Ethereum blockchain, valued at $ 4.2 billion at the time. The token sale comprised 350 distribution periods of at least 2 million tokens per day, making a total of 900 million tokens by the end of the ICO. Ninety percent of the total EOS tokens were distributed to ICO participants, while the remaining 10% was reserved for the EOS team. Since the EOS blockchain was still in development at the time of the ICO, Block.one issued EOS tokens on the Ethereum blockchain according to the ERC-20 standard. On June 2, 2018, ERC-20-based EOS tokens were frozen and replaced with native EOS tokens on the EOS blockchain through a token swap that took place on June 16.
EOS is an inflationary asset with an unlimited supply. The blockchain’s delegated proof-of-stake (DPoS) model generates EOS through staking rewards to fund transactions and pay block users. The DPoS mechanism has an inflation cap of 5% of annual inflation.
The EOS price has a long history of lengthy periods of sideways activity intersected with brief price rises and falls.
Two days after it was launched, EOS rose 996% to $ 5.50 before falling 79% over the next 13 days. From then on, the asset was capped between $ 0.45 and $ 2.0 for about four months until the crypto bull run took effect in late 2017. On January 18, 2018, EOS price peaked at $ 18.69 before plummeting to $ 4 in late March.
A second upswing in April 2018 pushed the price of EOS to its all-time high of $ 22.89. By the end of 2018, the crypto asset had seen a significant sell-off as investors lost confidence in the project and EOS fell at $ 2.59. In the next two years, EOS will; The price rarely peaked above $ 5, with the exception of a brief spike to $ 8.60 in May 2019.
In April 2021, EOS broke the $ 14.71 mark as a new upward cycle hit the crypto market. That was the highest price in almost three years.
How does EOS work?
EOS is a public blockchain that powers the EOSIO blockchain platform. The EOS blockchain has smart contract functions similar to Ethereum that allow developers to create their own dapps on the EOSIO platform. Dapps are applications that work autonomously and are not managed by a single company. However, unlike Ethereum, EOS confirms transactions using the DPoS consensus algorithm. The DPoS consensus was introduced in 2014 by Dan Larimer, a co-founder of Block.one and a former chief technology officer for the company. Under DPoS, EOS users can vote by staking tokens with block producers for three days without selling them, running the risk of losing money should the price of the token fall during that time. Block producers are elected by the EOS ecosystem through this token staking / voting system. Today, dPoS is a popular consensus algorithm used by other blockchains, including Avalanche (AVAX), Near (NEAR), Solana (SOL), and Polkadot (DOT). The EOSIO platform is more scalable than many other blockchain networks. with the ability to process around 4,000 transactions per second with no fees. In addition, the smart contract functions integrated in EOS are more developer-friendly, so that Dapp developers can obtain some technology resources directly from the blockchain. EOS does not charge any mining fees and therefore has no associated transaction fees.
Major events and management
Larimer led the project and played a key role in key decisions including the use of the DPoS consensus algorithm. In addition to his work on the EOS blockchain, Larimer is co-founder of the BitShares crypto exchange alongside Charles Hoskinson, one of the co-founders of Ethereum. Larimer also founded the Steem blockchain. He continued to work with Block.one on the EOS project until he stepped down from his position as CTO in late 2020 to pursue other projects. In August 2021, Larimer helped set up the EOS Foundation, which centralizes other EOS communities in efforts like Eden to promote the development of EOS infrastructure and provide grants for developers. The EOS Foundation is headed by Yves La Rose, who headed the foundation after leaving EOS block production firm EOS Nation, Token is a “terrible investment.” He was very critical of Block.one’s involvement in the project, saying that many people both inside and outside the EOS community believed that Block.one was knowingly misrepresenting its capabilities and that the project “no longer focused on the Block.one- Team ”.
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