As the blockchain space continues to evolve, occasional protocol updates are necessary to ensure that the project keeps up with the latest developments and provides users with the best user experience possible.
EOS’s recent protocol update has increased the project’s inflation rate, with EOS prices rising over 100% since May 5.
EOS / USDT 4-hour chart Source: TradingView
Data from Cointelegraph Markets Pro and TradingView shows that after hitting a low of $6.18 on May 5, the price of EOS reached a high of $12.85 at noon on May 6, up more than 100% due to a record 24-hour trading volume of $15 billion.
Protocol upgrade increases rewards for EOS pledgers
According to the EOS Twitter feed, the most significant developments in the network over the past month have been related to resource allocation and pledge rewards.
A recent report commissioned by Block.one concluded that the protocol needs to increase the inflation rate from the current 1% to between 1.2% and 3.8% in order to increase financial incentives for voters and block producers.
Regarding the EOS pledge reward model commissioned by Block.one, the Cryptowriter podcast interviews Chaney Moore and Rick Schlesinger.
- EOSwriter (@eoswriter) May 2, 2021
While the community still needs to determine the exact rate of increase in inflation, the prospect of increased community participation in the proceeds has helped to generate more enthusiasm for the project.
The second major development in the protocol is the EOS PowerUp model, which allows users to pay a fee to power up their account for 24 hours in order to trade on the network without having to pay a transaction fee for each transaction.
The PowerUP model provides another way for EOS token holders to earn revenue by depositing unused EOS tokens for a percentage of the “power-up” fees generated by the network.
This has become an increasingly attractive option as most traders are looking for ways to avoid the high transaction fees and network congestion on the ethereum network.
Cointelegraph Markets Pro’s VORTECS™ data detects a bullish outlook for EOS from May 4, just before the recent price increase.
The VORTECS™ score, provided exclusively by Cointelegraph, is an algorithmic comparison of historical and current market sentiment. These market sentiment analyses are a combination of data points such as market sentiment, trading volume, recent price volatility and Twitter activity.
VORTECS™ Score (green) vs. EOS Price Source: Cointelegraph Markets Pro
As the chart above shows, EOS’s VORTECS™ score was in the yellow range for the first few days of May, then moved into the green zone on May 4, earning a high score of 68. Just an hour later, the price of EOS began to rise 100% over the next two days.
As the overall cryptocurrency market heats up and projects like LTC and ETC reach new highs in 2016, EOS, a large-cap blockchain project, may continue to benefit from the cryptocurrency bull market.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/eos-price-rises-100-after-protocol-upgrade-increases-pledge-rewards/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.