In the dynamic world of blockchain technology, interoperability between different chains is crucial. Enter Evmos, the groundbreaking Inter-Blockchain Communication (IBC) protocol. Leveraging the Cosmos SDK, Evmos is the first EVM-compatible chain designed to bridge the Ethereum and Cosmos ecosystems. This innovation enables seamless asset transfers, fostering composability, and interoperability across multiple blockchains—all while ensuring fast transaction finality. As we delve deeper into Evmos, we’ll explore its unique capabilities, market performance, and how it’s reshaping the landscape of decentralized applications. Get ready to discover the future of blockchain connectivity!
What is Evmos?
Evmos is an Inter-Blockchain Communication protocol, also known as IBC, which serves as the IP layer for blockchains. IBC is currently the safest, most secure, and decentralized way to move assets across different blockchains, unlocking interoperability across multiple chains.
Evmos leverages the Cosmos SDK and serves as the first IBC-compatible EVM-based chain, bringing composability, interoperability, and fast finality to Ethereum. This makes it a pivotal player in the blockchain ecosystem, enabling developers to create cross-chain decentralized applications (dApps) more efficiently.
The Purpose and Utility of the Evmos Token
The Evmos token is the utility token of the Evmos ecosystem, a highly scalable EVM-compatible layer one blockchain based on the proof-of-stake (PoS) consensus mechanism. Evmos is designed to enable value transfer between Ethereum and Cosmos ecosystems, and it is developed using the Cosmos software development kit (SDK). The token is used to pay for transaction fees, stake to earn rewards, and participate in governance voting.
Key Functions of the Evmos Token
- Transaction Fees: The Evmos token is used to pay for transaction fees within the network.
- Staking: Users can stake their Evmos tokens to earn rewards and secure the network.
- Governance: Token holders can participate in governance voting, influencing the future direction of the Evmos ecosystem.
- Incentives: The token incentivizes network validators and developers, ensuring the network's security and functionality.
Addressing Key Issues
The primary purpose of the Evmos token is to incentivize network validators and developers, fuel network transactions and validation processes, and facilitate network participation through governance voting. The token also aims to address the disparity between block proposers and other network actors in traditional L1 chains by providing an option to the rent-seeking behavior prevalent in fat protocols. Evmos blockchain-level rewards active participants and restructures gas fees fairly among deployers of crucial applications and developers of essential network features.
Unique Features and Benefits
Interoperability
Evmos is designed to integrate Ethereum assets and decentralized applications with the Cosmos ecosystem's software development kit (SDK). It enables developers to deploy Ethereum smart contracts on Cosmos networks tailored for certain apps and create cross-chain dApps more quickly and affordably by fusing the EVM and Cosmos ecosystem.
Compatibility
Evmos is compatible with ERC20 tokens and other non-fungible token standards (EIP721, EIP1155) that are natively supported by the EVM. It also supports IBC Coins via the IBC protocol, which enables Evmos to connect decentralized applications to various blockchains, thereby enabling users to take advantage of shared liquidity and value transfer.
Security
Evmos uses Tendermint Core's Byzantine Fault Tolerance to distinguish itself from other network application layers. This ensures that the network remains secure and reliable, even in the face of potential attacks.
High Inflation with Controlled Decay
The Evmos token is designed to be highly inflationary, with approximately 300 million tokens released within its first year, following an exponential decay schedule that minimizes inflation annually. This approach ensures that the network remains incentivized while controlling long-term inflation.
Tokenomics and Distribution Model
The Evmos crypto token has a unique tokenomics and distribution model. At genesis, the initial supply of EVMOS was 200 million tokens, which were shared between the strategy fund, airdrops, and the community pool. The token distribution at genesis was 40% Strategic Fund, 10% Community Pool (DAO Treasury), and 50% Airdrop. After four years, the token distribution will be split between Usage Incentives, Staking Rewards, Airdrop, Team, Strategic Fund, and Community Pool.
Distribution Breakdown
- Staking rewards: 32% — issued proportionally based on the amount of Evmos token staked. Evmos targets a staking rate of minimum 50%.
- Team vesting: 20%
- Usage incentives: 20% — dedicated to the usage incentives pool to help subsidize gas for users.
- Community pool: 10% — set up to fund projects looking to build on the EVMOS chain.
- Airdrop: 8% — rewards for active users of the Cosmos and Ethereum communities and used to stimulate the ecosystem.
- Strategic Funds: 10% — set aside to fund initiatives through grants and support validators through delegation who are highly active in the network.
Inflation Control Mechanisms
To control inflation, Evmos has mechanisms such as token burning and staking rewards. A portion of the tokens per epoch are going to be issued to developers of the EVMOS Protocol, and 20% of the tokens per epoch are going to be issued to the usage incentives pool to help subsidize gas for users. Evmos targets a staking rate of minimum 50%, and staking rewards are issued proportionally based on the amount of Evmos token staked.
Additionally, Evmos is highly inflationary at the beginning, with over 300 million tokens being issued during the first year, but the release of tokens follows an exponential decay schedule, which reduces inflation annually. The initiative intends to issue one billion tokens in total over four years, making the project's long-term theoretically deflationary. However, the team advises the community to vote for another token supply system after the first four years.
Market Performance
Coin Statistics
- Current Price: $0.0990
- Market Cap: $0.00
- 24h Price Change: 3.74%
- 7d Price Change: 3.65%
- 30d Price Change: 54.87%
- 24h High: $0.1012
- 24h Low: $0.0953
- All-Time High: $4.5632 (2022-05-04T21:51:00.000Z)
- All-Time Low: $0.0509 (2023-10-20T02:48:00.000Z)
- Circulating Supply: 0.00
- Total Supply: 785,632,037.00
The Team Behind Evmos
The Evmos crypto token is backed by a team led by Federico Kunze Küllmer, who has been an active Cosmos contributor and helped develop Gravity bridge, Cosmos SDK, and the inter blockchain. The team is known for creating the first EVM-based Inter Blockchain Communication (IBC) protocol
