Khosla’s Departure and its Impact
A former co-founder of Evmos, Akash Khosla, has returned 59.4 million tokens worth $7.6 million to the Evmos Foundation. Khosla’s decision to return the tokens comes after disagreements on operations and aims to benefit the project and its community. This move is seen as a corrective step following concerns in May 2023 when Khosla allegedly attempted to sell a large number of Evmos tokens on the market. The return of these tokens will help realign the token distribution in favor of the current team and contributors actively involved in Evmos’ growth.
Evmos Foundation’s Response
Evmos, a blockchain compatible with Ethereum applications and backed by Cosmos, has faced challenges since its launch in 2022. The value of its native token dropped by 98%, going from an initial price of $6.8 to around $0.13. This decline was further worsened by the market reaction to Khosla’s token sale. In response, the Evmos community has taken decisive actions to stabilize and enhance the token’s value. One notable step is approving a proposal to burn 136 million tokens from the user incentives balance in the upcoming network upgrade. This strategy aims to address the high inflation that has been a concern for the token since its inception.
Hot Take: Recovered Tokens Mark a Step Towards Realigning Token Distribution
The recovery of 59.4 million tokens from Akash Khosla by the Evmos Foundation signifies progress in realigning the distribution of tokens in favor of active team members and contributors. This move follows Khosla’s departure and aims to address concerns raised by his alleged attempt to sell a large number of tokens on the market. By reclaiming these tokens, the Evmos Foundation can strengthen its distribution strategy and ensure that those dedicated to the project’s advancement retain control of the crucial resources. This development is expected to positively impact the project’s growth and stability moving forward.
By
By
By
By
By