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EO Token Flywheel

EO Flywheel

Initial Incentives and Emissions

EO mints EO tokens as rewards to incentivize early network adoption and bootstrap security. As the ecosystem grows and demand for specialized blockchain oracle services expands, these emissions gradually decrease to preserve token value and limit inflation.

Revenue Sharing

OVS revenue primarily comes from user fees. A share of these fees goes to Data Validators, Chain Validators, and the network's treasury. veEO holders also receive a portion, aligning the interests of governance participants with the network's long-term success while rewarding their commitment. This model ensures that as OVS usage grows, so does the economic value shared among the key contributors to the OVS and network success.

Transition to Fee Revenue

One of EO’s core objectives is to create a self-sustaining environment. Rather than permanently relying on token emissions, the protocol seeks to anchor its economic model to fee-based revenue generated by OVS usage. As more dApps rely on specialized data from EO, the fees they pay will increasingly fund validator and delegator rewards. This shift not only reduces inflation but also ties the token’s value to genuine market demand for real-world data feeds.

Merit Drops and Ecosystem Initiatives

To further stimulate adoption, EO introduces merit-based incentive programs. These programs reward early OVSs and dApps that integrate EO feeds, helping bootstrap usage during critical growth phases. These incentives foster a robust ecosystem of OVSs, validators, and dApps.

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