Subsequent to the reduction in MakerDAO’s stability fees, EOS holders voted to trim down the annual inflation rate from five percent to one percent as of June 1, as per data on the voting platform maintained by EOS Block Producer- EOS Authority.
As per the poll’s description, out of the current five percent of annual EOS inflation, four percent is being collected in the eosio saving account. The remaining one percent is distributed among Block Producers in exchange for network maintenance. Nearly, 3.6 million EOS are purportedly produced and sent to this on-chain account every month. It is to be noted that this number amplifies because of compound inflation mechanisms.
It is to be noted that the genuine reason for accruing funds on the aforesaid account was purportedly to have the people vote on how to use it or even burn it.
The proposal claims that eight months have gone and there is still no definite use for this huge quantity of EOS tokens which keep on flowing into the eosio saving account. The proposal further added that this huge amount of collected tokens has now become too much and if they continue to permit it to keep mounting, it might in due course become an attack vector for the EOS network.
The proposal’ author remarks in an explanation that it is time to turn the tap off and reduce the intensity of inflation down. Last of all, he also mentions that the accomplishment of the new inflation rate would have no significant effect on the earnings of the Block Producers.
Interestingly, stablecoin project MakerDAO has seen a sequence of votes to modify the so-called stability fee for its decentralized stablecoin DAI, which is based primarily on the Ethereum blockchain. The fee is notably reduced by two percent.