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EOS - Inflation Rate Slashed

Check out past issues of the newsletter along with more interesting crypto content as well as our rec

Satoshi&Co Daily Crypto Newsletter

June 4 · Issue #189 · View online
ZPX | Satoshi&Co Newsletters

Check out past issues of the newsletter along with more interesting crypto content as well as our recently-launched podcast series with leading crypto industry participants at our newly-launched website

(Listen to our latest podcast here. It is with Sandeep Nailwal of Matic Network, which is a layer 2 protocol working on ETH’s Plasma. Matic Network recently finished a successful launch on Binance Launchpad and is also the first Indian crypto startup to receive funding from Coinbase Ventures).
Top popular smart contracting platform EOS is going to see a reduction in token inflation from 5% to 1% after the latest vote by the community members. EOS has a perpetual annual inflation rate of 5%, of which 1% is paid to the block producers for network maintenance and the remaining 4% is directed into the savings account that functions more like a reserve for future spending. However, with no clear mandate as to how to spend the reserve tokens, a proposal has been made to reduce the inflation to 1%, which will be paid to the block producers in its entirety, to curtail the piling up of balances in the savings account as it can be a future attack vector for hackers. The proposal received 100% of the vote in favour of the inflation rate cut from the community members.
The below graph illustrates the change in supply schedule for EOS after the inflation rate cut. At 1% inflation rate, EOS would have less than a third of total tokens it would have had at a 5% rate.
Meanwhile in Crypto Wonderland....
“Indian Crypto Ecosystem Feeling Nervous”
India’s cryptocurrency ecosystem is nervous again. Prime Minister Narendra Modi’s second term has sparked speculation that the new government may continue with the previous one’s unfavourable stance on bitcoin and its ilk. The fears peaked on June 2 after an inter-ministerial panel, tasked with drafting regulations for the sector, confirmed that it will soon submit its report to the finance ministry. The panel, formed in November 2017, is headed by Subhash Chandra Garg, secretary of India’s department of economic affairs.
“Apple To Add Cryptokit in iOS 13”
Apple is set to announce CryptoKit, a new framework to “perform cryptographic operations securely and efficiently,” at WWDC 2019. CryptoKit will be available in Apple’s upcoming iOS 13. Apple’s team will unveil CryptoKit capabilities in a WWDC session titled “Cryptography and Your Apps.” CryptoKit will allow developers to carry out common cryptographic operations including hashing, key generation and encryption. Developers will now be able to automatically handle tasks that make their app more secure rather than handling them in lower-level interfaces.
“Blockport Facing Bankruptcy After STO Fail”
Amsterdam-based cryptocurrency exchange Blockport has declared bankruptcy after its security token offering (STO) flamed out in disastrous fashion. Blockport launched a token sale between April 16 and May 15, in which the crypto exchange sought to raise €5 million ($5.62 million). But it didn’t work out as planned. In a blog post last month, Blockport Founder and Chief of Product Sebastiaan Lichter announced that the project’s STO failed to reach the minimum threshold of €1 million ($1.13 million). In the same announcement, Lichter stated that all token sale participants would receive refunds for their investments.
“SEC Sues Kik Over Unregistered Token Offering”
The Securities and Exchange Commission on Tuesday said it sued Canada-based messaging app Kik for conducting a $100m initial coin offering without registering the offering with the US regulator.  The regulator alleges that in 2017 Kik’s management had predicted it would run out of money and sought to finance a new type of business through the sales of one trillion digital tokens dubbed “Kin”. The company raised more than $55m from US investors and the complaint alleges that the Kin tokens traded recently at about half of the value that public investors paid for the offering.
Tweet of the Day
Ari Paul ⛓️
“Availability bias” is our tendency to overweight things we hear about often. Over the past 30 years, the average American was 50x+ more likely to die from a car accident than from terrorism, yet many fear terrorism more. This bias often drives public policy.
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