MultiversX Proposes Removing EGLD Supply Cap Amid Controversy
Key Developments in MultiversX (EGLD) Governance Proposal
Robert Sasu, a core developer at MultiversX Foundation, unveiled a governance proposal on October 3 at "The Foundry" event, suggesting changes to the project's economic model.
The proposal includes removing EGLD's supply cap, breaking previous assurances of a fixed supply similar to Bitcoin.
A new economic framework introduces a 9.47% annual inflation rate and a burn of 10% of validator fees.
Justin Bons, founder of CyberCapital, criticized the proposal for high inflation and low burning rates, calling it outside industry standards.
Controversy arises as the proposed changes contradict longstanding claims of a capped issuance model for EGLD.
Current Market Status of EGLD
EGLD is trading at $14.25, marking a 41.31% decrease year-over-year but a 1.68% rise in the last 24 hours.
The market capitalization stands at $408.65 million, ranking it 147th among cryptocurrencies.
Implications and Future Prospects
The proposal aims to attract liquidity and align long-term stakeholders by fostering growth and moving to a more favorable US environment.
The strategy involves a reflexive value accrual mechanism, incentivizing adoption and innovation through fee burns and revenue reinvestment.
The changes have sparked debate over potential dilution effects and increased selling pressure on long-term holders.
