Evmos, a blockchain platform backed by Cosmos and compatible with Ethereum apps, recently experienced a notable development with the return of 59 million tokens by its former co-founder, Akash Khosla, to the Foundation. This strategic move was undertaken to realign token distribution within the project, addressing concerns that arose in May 2023 when Khosla was purportedly involved in attempting to sell significant quantities of Evmos’ native token on the market.
Former Evmos co-founder to return 59 million tokens
The returned tokens, totaling 59.4 million and equivalent to $7.6 million, encompassed both vested and unvested tokens. Of this sum, around 32 million tokens belonged to Khosla, while the rest constituted unallocated team tokens. Khosla highlighted that his decision to return the tokens was motivated by the project’s best interests and the well-being of its community. This ensures that EVMOS tokens are now in the possession of those actively contributing to the project’s growth and development. While the specific amount involved in the token return remains undisclosed, it is known that there was a prearranged agreement between Khosla and the Foundation.
Khosla’s departure from Evmos the previous year was attributed to operational disagreements, leading to the project’s continued development under the guidance of Federico Kunze Küllmer, the second co-founder, and director of the Evmos Foundation. Having secured $27 million in a token round led by Polychain Capital in November 2022, Evmos initially held promising prospects. However, the project’s native token has seen a substantial decline in value since its launch in 2022. Experiencing a sharp 98% drop, the token plummeted from its initial trading price of $6.8 in April 2022 to its current value of approximately $0.13, according to The Block’s price page.
Stabilizing the network’s tokenomics
This decline was further exacerbated by the allegations of Khosla attempting to sell tokens on the market, coinciding with a nearly 50% drop in price in May of the same year. The return of 59 million tokens holds significant implications for Evmos, particularly as its community actively engages in initiatives to improve the project’s tokenomics. The focus lies on addressing the high inflation that contributed to the token’s sharp decline in value. Notably, the community recently approved a proposal to burn 136 million tokens from the ‘user incentives balance’ during an upcoming network upgrade, showcasing a proactive approach to stabilizing the token’s value.
Evmos, as a Cosmos-backed blockchain, maintains its commitment to compatibility with Ethereum apps. The recent developments, including Khosla’s token return and community-driven efforts to enhance tokenomics, underscore the project’s resilience and dedication to overcoming challenges. These initiatives aim to ensure the sustainable growth and development of Evmos in the dynamic and competitive landscape of blockchain technology.