The second halving event for the EQO token is due to take place on September 24, and here's why that's exciting. The amount of tokens distributed each day will halve, which means that the opportunity to get more tokens will be less, but the value of those tokens will increase as more and more utility is rolled out for the EQO holder.
Holders of EQO receive benefits in the form of staking, airdrops, enhanced yield, cross-collateral margin, fee reductions, and more.
As the purpose of EQO is not for crowdfunding but to promote growth, there has not been and will not be a token sale. Instead, the token is issued to reward those who trade and stake on EQONEX. Therefore, the only way to gain access to the benefits is to be an active user on the EQONEX platform.
The first EQO airdrop, EQO-D, which landed on September 20, created even more interest in EQO. The airdrop was made available only to EQO holders and in proportion to the amount of EQO held. If you did not have any EQO, you did not receive any of the airdrop.
Like Bitcoin, there will only ever be a maximum of 21 million EQO tokens. The amount of new supply entering the market will diminish over time thanks to halving events.
10% of the total balance of EQO tokens will be directed to the EQONEX treasury to contribute to the exchange's continuing growth, the remaining 90% distributed to traders and holders on the platform.
EQONEX will release EQO in eight epochs, over two years, which started on the EQO Full Launch date of April 8, 2021.
Each epoch is 90 days, except the first, which was 80 days. For each day during the epoch, there is a daily allocation of tokens, called a Reward Block. At the halving, the number of EQO tokens in each reward block will reduce by half.
Currently, we're in the second epoch, with the second EQO halving due to take place on September 24.
In the next epoch, daily EQO rewards distributed to EQONEX users will reduce from 52,706 to 26,352.94.
Along with reducing the number of EQO tokens in each reward block, the halving also changes the allocation, features, and benefits of the EQO token.
The allocation of EQO tokens distributed to EQONEX customers is split into two portions. In the last epoch, 75% was distributed to EQONEX traders based on volume and 25% to those who hold EQO tokens.
At each halving event, the ratio of distribution will change by 10% in each direction. After the next EQO halving, 65% of the daily rewards block will be paid based on trading volumes, and 35% will go toward stakers. This adjustment will end at the eighth epoch when the final reward blocks pay 85% rewards to stakers and 15% to traders.
This model is designed to increase the incentives for staking over time and encourages holders to accumulate early for the opportunity of ongoing rewards.
EQO holders will be eligible to participate in airdrops, and traders can continue to earn discounts on their trading fees by holding EQO tokens. In addition, once cross-collateralization is live on EQONEX, EQO holders can also use their tokens to collateralize trades.
Like Bitcoin, EQO is easier to acquire in the earlier Epochs, and at just a 21 million market cap today, it is still early.