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A notable development occurred in the Cosmos ecosystem’s Evmos network. Accordingly, 59 million EVMOS tokens owned by Evmos co-founder Akash Koshla were returned to the Evmos Foundation. This development followed allegations in May 2023 that Khosla was trying to sell large amounts of EVMOS tokens, causing concern among many investors.
59 Million Tokens Returned
After the former executive returned the allocated assets, adjustments to the token supply allocated to the current team and developers of the Evmos Foundation are expected. The market value of the returned tokens was worth $7.6 million at the time of writing, with approximately 32 million of these tokens belonging to Khosla and the remaining tokens to the team. According to Khosla’s statements on the matter, the decision to return the tokens was made to protect the interests of the project and the community. The former executive stated:
“This step was necessary for the project and the community, and ensures that EVMOS tokens are held by those actively contributing to the project’s growth and development.”
Khosla had left Evmos last year due to disagreements. The project’s development continues to be led by Evmos Foundation’s director Federico Kunze Küllmer. Evmos is a Cosmos-supported blockchain network compatible with applications on the Ethereum network. In November 2022, the team successfully raised $27 million in a funding round led by Polychain Capital.
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.
