Core Insights - The MultiversX Foundation has proposed a governance change to remove the supply cap on EGLD, which contradicts previous commitments made by the Foundation [1][5][6] - The proposal includes a new economic model featuring a 9.47% annual tail inflation rate and a mechanism to burn 10% of fees paid to validators [3][4] - The change has sparked controversy, as it undermines the project's long-standing promotion of a capped supply similar to Bitcoin's scarcity [5][6] Economic Model Changes - The proposed governance document outlines an inflation rate of 9.47% annually, which is considered high by industry standards [3][4] - A burn mechanism is introduced, where 10% of fees paid to validators will be burned, raising concerns about the overall sustainability of the tokenomics [3][4] Community Reactions - Justin Bons, founder of CyberCapital, criticized the proposal for its high inflation rate and low burn rate, suggesting it deviates from industry norms [4] - Bons plans to publish an article detailing his views, although his opinions were dismissed by other speakers due to a lack of transparency regarding his investment exposure [4] Historical Context - MultiversX, previously known as Elrond, rebranded in November 2022, and has faced similar controversies in the past, such as the xMoney token migration that diluted existing token holders [2] - The Foundation has historically emphasized a capped issuance model, with a maximum theoretical limit of 31.4 million EGLD tokens, which is now being challenged [5][6]