Evmos Foundation Recovers $7.6 Million in Tokens from Former Co-Founder
The Evmos Foundation has successfully reclaimed 59.4 million tokens, equivalent to $7.6 million, from Akash Khosla, its former co-founder. This development follows a period of uncertainty and operational disagreements that led to Khosla’s departure last year. The recovered tokens, which include both vested and unvested amounts, mark a step towards realigning the token distribution in favor of the current team and contributors actively involved in Evmos’ growth.
Khosla’s Decision and Its Impact
Khosla, who separated from Evmos due to differing views on operations, has expressed that returning the tokens aligns with the best interests of the project and the community. This move is seen as a corrective step following concerns that arose in May 2023 when Khosla allegedly attempted to offload many Evmos tokens in the market. The return of these tokens is expected to bolster the distribution strategy, ensuring that those dedicated to the project’s advancement retain control of the crucial resources.
Evmos Foundation’s Response
Evmos, a Cosmos-backed blockchain compatible with Ethereum applications, has faced challenges since its launch in 2022. Moreover, the value of its native token plummeted by 98%, dropping from an initial price of $6.8 to around $0.13. This decline was exacerbated by the market reaction to the news of Khosla’s token sale.
In response, the Evmos community has taken decisive actions to stabilize and enhance the token’s value. A noteworthy step in this direction is approving a proposal to burn 136 million tokens from the user incentives balance in the upcoming network upgrade. This strategy is part of a broader effort to improve the project’s tokenomics, particularly addressing the high inflation that has been a concern since the token’s inception.
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