EOS Review: How Does Its 5% Yearly Inflation Work?
By: Nigeria Bitcoin Community
Tags: Blockchain, Eos, Bitcoin, Cryptocurrency, Ethereum

EOS Block Reward

For the rewards, EOS’s DPoS operates differently.

The Proof of Work(PoW) and Proof of Stake(PoS) mechanisms provide a more immediate reward system.

For example, in Bitcoin, the miners earn their block rewards immediately after they add a block to the blockchain.

But for EOS, it has an inbuilt inflation system that increases its overall supply by 5% every year.

These extra coins are distributed thus:

I will further explain the image below.

The 5% inflation of EOS per year is divide into 2 parts:

1% for the producers

4% for Savings

The main reasons for this distribution style are to ensure that

Producers are sufficiently paid for their services. No one receives less such that it cannot cover costs. Everyone who qualifies must get a minimum per day payment. This is to make sure that the big whales who have no intention of producing blocks do not attempt to earn illegally.

See further explanation on that below.

How The 1% For Producers Is Shared

You will remember that I mentioned that there are 21 block producers, right?

Now there are other producers who gained some votes from the election but not enough to be among the 21 selected ones.

You might be wondering why I am bringing this up now. You will find out in a bit.

Now the 1% that is meant for the producers is further divided into 2 parts:

0.25% for Block Rewards

0.75% for Vote Rewards

Now all the block producers are entitled to the 0.25% block reward. This is shared in proportion to the number of blocks they validated.

For the 0.75% vote rewards, they are shared for the 21 block producers and the rest of the standby producers according to the number of votes they have.

But for this to happen, these have to be in place:

The producers who get the reward must qualify for at least 100 EOS tokens

The vote rewards have to go out at once daily

This is how 1% out of the 5% is shared.

Now I hear you say; What about the 4%?

Yeah, I didn’t forget that. Let’s go see about that below.

What Happens To The Remaining 4%?

As seen in the image above, the remaining 4% will be kept as savings. It will be allocated to the future worker proposal system.

Now that’s a lot of EOS flying around considering that in the first year, there will be 50,000,000 extra coins (considering the initial 1 billion coins).

What this sum will be used for depends greatly on what the EOS community decides.

That’s all about the reward.

Next, we will check out the exchanges where you can buy EOS.

Keep reading.

Top Exchanges To Buy/Sell EOS

The reputable exchanges where you can buy/sell EOS are:

Binance Coinbase OKEX Coindirect Changelly HitBTC Gate.io

Find details about them below.

1. Binance

Binance (coined from Binary + Finance) is a cryptocurrency exchange that was founded in July 2017 by Changpeng Zhao.

This exchange aims to improve the future of crypto finance by allowing its users to make payments in cryptocurrencies and other supported methods.

The supported currencies include BTC, EOS, IOTA, ETH, and over 100 others.

Read Review Visit Binance

2. Coinbase

Coinbase is one of the oldest and biggest names in the crypto space.

It started off in 2012 as a Bitcoin broker exchange but now offers more services and supports more coins.

It provides support for up to 90 countries and 3889 coins including, BTC, EOS, ETH, etc.

Read Review Visit Coinbase

3. OKEX

OKEX is a multi-currency exchange that was founded in 2014.

It allows its users to purchase up to 188 cryptos including, BTC, EOS, USDT, IOTA, BCH, XRP, TRX, ETH, and LTC, which can be bought with your local fiat.

For payment, it provides an array of options for its users.

Read Review Visit OKEX

4. Coindirect

This exchange was launched in 2017 and provides the following services:

Buy/Sell

Wallet

Convert

It provides support for up to 40 coins(EOS inclusive).

Coindirect services are available in 24 countries and have up to 4 payments options available.

Read Review Visit Coindirect

5. Changelly

Changelly is a non custodial exchange that was launched in 2015.

This exchange allows you to buy, sell, and swap cryptos seamlessly.

It provides support for more than 140 coins, among which is EOS, BTC, ETH, etc.

Read Review Visit Changelly

6. HitBTC

HitBTC is an advanced cryptocurrency exchange that was founded in 2013.

Based in Hong Kong, the platform offers its users tools and features with high reliability to trade with.

It supports EOS, BTC, ETH, etc., and has up to 800 crypto trading pairs.

Yet to Review Visit HitBTC

7. Gate.io

Gate.io is a trading platform that is operated by Gate Tech. Inc. and was launched in 2013.

It provides its users the opportunity of trading both Spot and Futures in one place.

The platform provides support for up to 500 coins.

Yet to ReviewVisit Gate.io

Now we have the exchanges listed, the next step is to find out where to store your EOS when you purchase them from these exchanges.

Keep reading.

Where Can I Store My EOS? — EOS Wallets

The wallets where you can store your EOS include:

1. Trezor Model T

Trezor Model T is a hardware wallet that stores your private keys offline.

It is manufactured by Satoshi Labs and is an upgrade to the Trezor One wallet.

It provides support for up to 1000 coins, including BTC, EOS, ETH, XRP, XMR, etc.

You can get one for 149EUR and can store, buy/sell, and send/receive EOS from this wallet.

2. Ledger

Ledger hardware wallets are created by a French company called Ledger which started in 2014.

It uses a unique technology called BOLOS (Blockchain Open Ledger Operating System) for creating its wallets.

Both Nano S and Nano X supports the sending and receiving of EOS and other coins.

Ledger Nano S sells for 63.03EUR, while that of Nano X is 125.10EUR.

3. Exodus

Exodus is the very first multi-asset desktop wallet but is now available in mobile versions (Android and iOS).

Some of its features include live charts and portfolio, built-in exchange, and 24/7 human support.

Exodus provides support for more than 100 coins, including EOS, BTC, TRX, etc.

4. Freewallet

Freewallet is a mobile EOS wallet that allows you to store, send, and receive EOS.

Its security features include:

fingerprint log in

2FA

pin code lock

email confirmation for each transaction

daily and weekly withdrawal limits

Of all the 127 supported coins, you can top-up your balance with any coin, and it will be converted to EOS automatically.

5. Guarda

Guarda is another non-custodial wallet for storing EOS and other coins(about 1000).

For convenience, you have this wallet in desktop, web, and mobile versions.

As an added function, Guarda has a built-in exchange where you can buy/sell cryptos for fiat.

6. SimplEOS

This wallet is made solely for the EOS network.

EOS Rio made SimplEOS with a security and transparency philosophy.

It is a desktop application compatible with the most popular operating systems, and it’s available on Github to be audited by the community.

Other wallets to store EOS include im Token, Scatter, etc.

There you have the EOS wallets. I will go ahead and compare EOS with its counterpart Ethereum.

See the comparison below.