What is EOS (EOS)?

$EOS is the native token of the EOS network which was initially launched on Ethereum and then moved to EOS network. It can be used for staking, governance, and other economic activities. $EOS has no supply cap. Inflation of 1% per year (the original inflation rate was 5%, changed in February 2020).

Unlike other smart contract platforms such as Ethereum, there are no fees when using a DApp or interacting with a smart contract. These feeless transactions are possible because of prepaid network resources that the developers pay for with their stake when they deploy a smart contract on the EOS blockchain.

In the traditional Web 2.0 world, developers pay for resources required for their application, such as servers, network bandwidth and domain, to deploy and run their application. The users can access these applications free of cost using their browser.

The same model is being applied here on the EOS blockchain, where the developers stake their EOS tokens in order to secure an equivalent amount of resources for their DApp. There are three resources that the developers can use on EOS:

• CPU — The amount of CPU time necessary to process transactions.
• NET — Network bandwidth required for transactions (data transfer).
• RAM — Used by smart contracts to store data on the blockchain.

Based on the size of the stake, the developers can secure an equivalent amount of resources from the EOS network to host and run their DApps. Users can use the DApp without any transaction fees. When developers withdraw their staked tokens from the network, the EOS protocol will charge transaction fees from the inflation token.