EOS is the native cryptocurrency of the EOS network. Users can use the token for smart contracts and the creation of dApps. Developers who wish to create and manage dApps on the EOS network can do so by holding EOS tokens. EOS token holders who are not running dApps have the option to share their available bandwidth with other participants on the network or rent it out. ^{[1] [2]}

History

In 2018, the initial coin offering (ICO) of EOS set a new record in the cryptocurrency market. It became the largest crowdfunding campaign to date, raising $4.1 billion, which accounted for almost a quarter of the entire ICO boom in 2017-18. ^[3]

The distribution of EOS tokens lasted approximately one year, beginning on June 26, 2017, and consisted of 350 distinct periods. At the end of each period, the total number of EOS tokens allocated for that period was distributed to contributors based on the proportion of their ETH investment relative to the total amount contributed. The ICO concluded on June 1st, 2018. ^[1]

After the launch of the EOS blockchain, Block.one, the company behind EOS, did not reinvest in it as much as many had anticipated. Despite raising a record $4 billion in its ICO, the expected benefits did not materialize. Instead, the company allocated its resources to other projects outside of EOS, including the social network Voice and centralized exchange Bullish. Bullish received much of its liquidity from the proceeds of the EOS ICO. ^[3]

Yves La Rose, the founder and "community-elected CEO" of the EOS Network Foundation (ENF), revealed that they were preparing for a legal "war" against Block.one, the creators of EOS. The EOS leader mentioned that they were reviewing any potential legal action "to seek $4.1B in damages." They also mentioned that a Canadian law firm was working with them to explore what legal action they could take against the original developers of EOS. ^[4]

“Block.one has not kept its word regarding past promises and that both the community and individual [EOS] - (https://iq.wiki/wiki/eos) users have been harmed as a result.” ^[4]

In 2021, the Foundation announced that they had engaged in negotiations with Block.one to find common ground and settle the issues in a fair manner. However, ENF notes that Block.one walked away from the negotiations. Led by the EOS Network Foundation, the community voted to freeze the founding team’s token vesting contract in 2021 and fork the open-source codebase in 2022. ^[4]

Overview

EOS employs Delegated Proof-of-Stake (DPoS) as its consensus mechanism, wherein a select group of delegates validate transactions and create new blocks. The native token EOS serves multiple purposes on the network. It can be used to purchase system resources, participate in EOS governance, transfer value within native applications, and account for value by investors and speculators. ^[1]

Furthermore, EOS token holders have the option to stake their unused EOS tokens and earn a percentage of the fees collected from users who want to access EOS system resources through the EOS PowerUp Model. This allows token holders to actively participate in the network and potentially earn rewards for contributing to its operation. ^[2]

EOS PowerUp Model

The EOS PowerUp Model is a mechanism utilized within the EOS blockchain ecosystem that allows users to temporarily enhance their accounts by paying a nominal fee in EOS tokens. This feature enables EOS token holders to stake their tokens and earn a portion of the fees generated by the network. ^[2]

The implementation of the EOS PowerUp Model aims to abstract the on-chain resource management from end-users, resulting in a more seamless and user-friendly experience on the EOS public blockchain. Middleware solutions are anticipated to be established to automatically manage resources for decentralized applications (dApps) and new users, potentially reducing the cost of user onboarding and eliminating resource costs from the average user experience. ^[2]

Tokenomics

The EOS blockchain initially had a total supply of 1 billion tokens and an annual inflation rate of 5%. In February 2020, the inflation rate was reduced to 1%. ^[1]

Rebrand to Vaulta

In 2025, the EOS Network underwent a significant rebrand, changing its name to Vaulta and shifting its strategic focus towards regulated Web3 banking. This transition was aimed at correcting a misalignment between the previous brand and the project's long-term vision, addressing past community frustrations, and emphasizing performance, security, and financial compliance. The rebrand positions Vaulta as a purpose-built financial network and a Web3 banking layer tailored for institutional finance. Block.one, the original creator of EOS, is no longer affiliated with the network following the rebrand.

The transition included a token swap, provisionally scheduled for the end of May 2025. The new native token for the network is $A, which is a 1:1 replacement for the original EOS token. Vaulta introduces a supply cap of 2.1 billion tokens, replacing the previous inflationary model of EOS. Of this supply, 250 million $A tokens are reserved for staking rewards. The utility of the $A token includes governance voting, staking for yield, resource access, and transaction fees on both the native chain and EOS EVM.

Governance of the Vaulta ecosystem is overseen by the Vaulta Foundation. A key part of the transition is the launch of the Vaulta Banking Advisory Council, composed of financial and blockchain industry experts. Members include executives from firms like Systemic Trust, Tetra Trust, and ATB Financial. The council focuses on bridging the gap between traditional banking and decentralized systems. While retaining its Delegated Proof-of-Stake (DPoS) model, governance under Vaulta is paired with stronger community alignment and increased transparency.

Vaulta maintains the technical infrastructure inherited from the EOS Network, including its smart contract architecture, decentralized database, and inter-blockchain connectivity. As part of its Web3 banking initiative, the platform integrates with exSat, a Bitcoin-focused digital banking solution. Vaulta plans to leverage various partnerships, including with Ceffu, Spirit Blockchain, and Blockchain Insurance, to expand its Web3 banking ecosystem and build financial products with insurance and yield management layers. The platform aims to serve as a foundational layer for wealth management, payments, asset tokenization, and insurance. Its approach to Web3 banking is described as two-pronged, offering blockchain-based services for banks and neobanks, and a broader financial ecosystem featuring Bitcoin banking solutions, blockchain insurance, and tokenized real-world assets.

The rebrand has been met with positive community sentiment, with many viewing it as a genuine restart. Vaulta differentiates itself from general-purpose blockchains by specializing in regulated finance and aims to carve out a unique niche with high throughput, a capped supply, and native Bitcoin yield strategies. The roadmap for Vaulta includes the token swap and staking launch in 2025, institutional pilots and RWA tokenization in 2026, stablecoin integrations and compliance toolkits in 2027, and global finance integration and multichain interoperability by 2028. Existing EOS holders benefit from the 1:1 token swap, gaining access to potentially higher staking yields, improved governance, and a revitalized roadmap. ^{[3] [4] [5]}