A noteworthy occurrence unfolded within the Cosmos ecosystem’s Evmos network. A significant development transpired in response to concerns raised in May 2023 about Evmos co-founder Akash Khosla attempting to sell substantial quantities of EVMOS tokens. Reportedly, 59 million EVMOS tokens belonging to Khosla were returned to the Evmos Foundation.
Return of 59 Million Tokens in Evmos Network
Following the former executive’s return of the allocated assets, it is anticipated that adjustments will be made to the token supply designated for the current team and developers associated with the Evmos Foundation. The market value of the returned tokens, as of the current writing, stands at $7.6 million. Of these tokens, approximately 32 million were possessed by Khosla, with the rest allocated to the team. According to Khosla’s statements, the decision to return the tokens was driven by the commitment to safeguard the interests of the project and the community. The former executive expressed:
“This step was essential for the project and the community, guaranteeing that EVMOS tokens are in the possession of those actively contributing to the project’s growth and development.”
Khosla departed from Evmos last year amid disagreements. The ongoing leadership of the project remains under the guidance of Federico Kunze Küllmer, the director of Evmos Foundation. Evmos is a blockchain network supported by Cosmos, designed to be compatible with applications on the Ethereum network. In November 2022, the team achieved a successful fundraising round, securing $27 million, with Polychain Capital leading the investment.
Notable Steps Affecting Evmos Price
This development coincided with the Evmos community working on improvements to the project’s tokenomics. High inflation, a major cause of the token price drop since the 2022 launch, was devaluing the token. This step gains even more importance with Khosla’s return of 59 million tokens.
Since its inception in 2022, the Evmos token value has seen a significant decline. According to Tradingview data, the price dropped from the initial trading price of $6.8 in April 2022 to about $0.13, a 98% decrease. This decline intensified with allegations of Khosla’s attempt to sell tokens, coinciding with a roughly 50% price drop last May.
Evmos recently took decisive steps to balance the token value. A notable move was the community’s approval of a proposal to burn 136 million tokens from the user incentives balance for the upcoming network upgrade.
