Can the narrative bridging Cosmos and Ethereum continue to be valued by the Web3 world?
A maximum of 136 million assets will be destroyed, but this is not enough to support the continued rise of EVMOS assets?According to market data, Evmos is steadily growing in performance. Currently, its market capitalization is approximately $68.43 million, with a trading volume of about $1.41 million in the past 24 hours, representing a 14.30% increase compared to the previous day. Additionally, Evmos has over 212,000 monthly active users and more than 900,000 monthly transactions, while offering over 250 applications and services. The upward trend in these figures may be a market response to Evmos's recent actions.
EVMOS Asset Price Trend
So, what recent actions has Evmos taken to trigger such positive data feedback? The following will explore this in detail.
Upcoming Buyback and Burn Mode, Shaping the Scarcity of EVMOS Assets
Recently, the Evmos Foundation has taken significant steps to strengthen its market position. According to news from January 9, the Evmos Foundation repurchased up to 59.4 million EVMOS tokens from the project's former co-founder, Akash Khosla, valued at approximately $7.6 million. The details of this action are noteworthy: the foundation and Khosla reached an agreement on the specific buyback amount for the tokens, although the exact figure has not been disclosed. This token buyback is expected to have a significant impact on the token distribution among the Evmos team and its contributors.
Prior to this, Evmos CEO Federico announced a proposal regarding the burning of EVMOS tokens on the X platform. This proposal was passed with a majority vote and will be implemented during the upcoming Evmos software upgrade this Thursday. At that time, up to 136 million EVMOS tokens will be burned. Furthermore, from that day onward, all transactions conducted on the Cosmos network will have their transaction fees burned. This initiative not only demonstrates Evmos's management of its token value and supply but also reflects considerations for network health and sustainability.
Overall, these steps by the Evmos Foundation aim to reposition its role in the market and may influence its long-term development. With the Evmos software upgrade and adjustments to the tokenomics, the market will continue to monitor its impact on the overall cryptocurrency space.
Achieving Interoperability Between the Cosmos Ecosystem and Ethereum, EVMOS's Technical Solutions Have Attracted Capital Market Attention
The emergence of EVMOS marks a technological attempt in the cryptocurrency field, aiming to integrate EVM (Ethereum Virtual Machine) compatible chains into the Cosmos ecosystem. This integration attempt means that EVM-based blockchains, such as Fantom, Avalanche, and Harmony, can connect to the Cosmos IBC (Inter-Blockchain Communication) ecosystem through Evmos. Such a technical layout provides new possibilities for the flow of assets and information between different blockchains.
Historically, the technical origins of EVMOS can be traced back to Ethermint, which initially aimed to combine the Tendermint consensus protocol with Ethereum. However, with the development of technology, particularly the emergence of rollup technology, Ethermint's original intent and positioning gradually changed. This prompted the Tharsis team, which developed Evmos, to adjust its strategy and build an EVM-based blockchain on Cosmos. This new direction focuses not only on the interoperability of smart contracts between IBC and Ethereum but also emphasizes the composability between systems.
In November 2022, Tharsis Labs completed a $27 million seed round of financing through a token sale, led by Polychain Capital. This financing attracted investors from the Web3 space, including Galaxy, Huobi, HashKey, Coinbase Ventures, Circle Ventures, and Asymmetric. The funds raised will be used for further development of Evmos and ecosystem building.
Through this series of developments and capital injections, EVMOS has demonstrated its technical and market potential in the cryptocurrency field. As a platform aimed at enhancing interaction between different blockchains, EVMOS plays a crucial role in promoting cross-chain communication and modularity in the cryptocurrency space. As its ecosystem continues to expand, EVMOS may lead new development directions in the cryptocurrency world.
Understanding the EVMOS Economic Model: The First Token in the EVM Ecosystem to Promote Chain Governance Outcomes, Collaborating with Celestia
In the blockchain world, developers, users, and block proposers (also known as validators or miners) play a key role in creating and maintaining the network's value. However, many blockchain projects fail to accumulate sustainable value equally for these key participants. Typically, most of the value is accumulated by block proposers, while users and developers receive relatively little.
EVMOS 2.0 Official Launch Theme Poster
To address this issue, Evmos has adopted an innovative approach. The Evmos token not only serves as a transaction fee and staking token but will also become the first token in the EVM ecosystem to promote chain governance outcomes. Additionally, it aims to connect the three main actors (developers, users, block proposers) and achieve a win-win situation from an economic perspective. The main functions of the EVMOS token include:
- Providing rewards for network developers and operators;
- Participating in governance voting for protocol upgrades;
- Registering tokens in the ERC20 module;
- Establishing incentive measures based on Evmos applications;
- Enabling high-priority features of the network.
These functions not only promote the healthy development of the network but also create value for token holders. Token holders participate in voting to decide on reward measures, thereby directly influencing the utility and value of the tokens.
In the initial phase of the Evmos token issuance, a portion of the total supply (40%) was airdropped to users through Rektdrop, while the remaining 60% was allocated to community pools and strategic reserves to accelerate ecosystem development. Evmos set a high inflation rate in the initial phase, issuing over 300 million tokens in the first year. According to its initial token issuance model, the issuance of new tokens will follow an exponential decay schedule, with the inflation rate gradually decreasing each year (divided into 365 periods). This model aims to complete the issuance of a total of 1 billion Evmos tokens over four years.
After four years, the token issuance will end, at which point token holders can vote to decide on further distribution methods or set a token cap.
In the Evmos network, similar to other blockchains based on Tendermint and Cosmos SDK, the unlocking period for staked tokens is three weeks. Unlike Ethereum, the gas fees on Tendermint blockchains are generally lower. As an EVM-compatible chain, Evmos needs to balance its gas consumption to match the levels of other EVM chains. Although transactions not using the EVM module incur almost no fees on Evmos, transactions involving the EVM module still require gas fees.
EVMOS's Buyback and Burn Plan
The partnership between Evmos and Celestia enhances its market potential, allowing EVM-based applications to effectively scale using Celestia as a data layer. This collaboration enables efficient rollups on Evmos to operate within the Cosmos hub, improving scalability and security. This mechanism, optimized specifically for rollups, reduces transaction costs and enhances the overall efficiency of the network.
These characteristics and future developments of the EVMOS token demonstrate its diverse value in the market while highlighting Evmos's potential influence and innovation in the blockchain field. As its ecosystem continues to grow, the EVMOS token may play an increasingly important role in the cryptocurrency market.
What Positive Initiatives Will EVMOS Take in 2024, Worth Further Attention
As 2023 comes to a close, the Evmos team has laid out ambitious plans for 2024. They are preparing to achieve their goal of surpassing competitors through a new architectural adjustment and a deep overhaul of the technical platform. This is reflected not only in technological innovation and optimization but also in the concrete practice of Evmos's long-term vision.
Evmos's core vision is to utilize the most cutting-edge, secure, and scalable technology—blockchain—to build and promote financial applications and infrastructure for the next century. Therefore, 2024 will be a key year for Evmos in terms of technological innovation and market expansion. They plan to establish a leading position in the fintech sector by introducing new blockchain features, optimizing user experience, and developing more efficient solutions to address a wide range of application scenarios.
Evmos's development strategy for 2024 aims to strengthen its leadership in the cryptocurrency and blockchain technology fields through technological upgrades and precise adjustments in market positioning. The implementation of these strategies is expected to endow Evmos with a more critical and revolutionary role in the future of the cryptocurrency market and blockchain technology development.
