Evmos Token Analysis (A Cosmos Token)

This article expands on our previous Evmos article. In this writing we review the token economy for Evmos along with the future prospective of the token as a potential investment.

Crypto Evmos Cosmos

Evmos Recap

For an introduction to Evmos, which is built using the Cosmos developer kits, please check out our article here [here]. After using Evmos for a few weeks I can say that the user experience has exceeded my expectations. I did have to learn some new wallets to get funds onto my Metamask, and after I finished the integration, I received the full airdrop reward. Evmos airdropped to users who heavily participated in Ethereum Defi using applications such as Uniswap, AAve, Metamask and more. They also airdropped tokens to users of the many Cosmos applications.

-To get funds in America I bought the ATOM token on an exchange and created a Keplr wallet. From there I sent ATOM to the Cosmos Hub section. I then used the Osmosis application to send Cosmos through the IBC. Once the tokens made it to Osmosis I swapped them for a small amount of Osmo for fees, then I swapped the rest of my ATOM to Evmos. Once you have your Evmos, go the the Evmos main site and use the bridge to send the funds to Metamask. Once on Metamask you will be able to stake your tokens-

Since Evmos is Ethereum compatible from the ground up, I was able to integrate the familiar Metamask and begin participating in swaps and Defi with ease. I decided to take some profits on the recovery rally in my riskier plays and buy more into the token around 1.6-1.7$. The staking rewards provide over 500% right now.

Crypto Evmos Cosmos

Initial Allocations

Take a moment to look at the graphic above. You will quickly notice that 20% of the tokens go to the Evmos team and almost all of the other tokens are used for some form of reward or the governed treasury. The team needs to be compensated if an investor is looking for a long-term project. The Team keeps developing the blockchain and advocating for expansion of the ecosystem. Adding the staking rewards, usage incentives, airdrop and Dao pool the initial allocations are clearly setup for community.

The airdrop was the first of the tokens to be released to the community, quickly followed by staking rewards which currently boast a very high APY. Staking started at over 1500% on the first day, so those who were early can really start to accrue tokens ahead of the pack. This is a rare initial allocation that does not feature any venture capitalist firms or institutions. So there is no worrying about the whales dumping on the market as their tokens unlock.

Crypto Evmos Cosmos

Economy

The token release schedule above reveals that the airdrop and the strategic reserve have already released in full. A standard 4-year token release is presented with a goal of 1 billion tokens. This is a favorable release schedule because no institutions or VC firms are involved. Typically, investors would need to worry about massive token unlocks for investors who got in early at a few cents per token.

Evmos is a utility token much like Ethereum. A well made utility token can also present as a store of value over time if they network effect is positive. Evmos is used for gas fees for all transactions on the blockchain. With the Cosmos IBC, Evmos will have access to many popular blockchain networks increasing usage. Since Evmos is Ethereum compatible, many popular protocols will interconnect with the network increasing volume of transactions, thus increasing collected fees. Users who stake the token will delegate to one of currently 150 validators, these validators collect the staking rewards along with network fees. These fees are distributed to investors such as myself  [1]

Crypto Evmos Cosmos
Crypto Evmos Cosmos

Since Evmos is created to reward users rather than feed early investors, developers are highly incentivized to partake in building on the blockchain. Remember, any chain built on Cosmos automatically benefits from the interoperability that Cosmos provides. The likes of Chainlink, AAve, Uniswap, and other bluechip networks will integrate easily. Over time Evmos will change through governance models. Having a capped supply is bullish, the 4-year release schedule with no whale games is appreciated. Almost 30% of the capped supply is already released.

The burning mechanism currently in effect for Evmos involves the governance process. If a governance proposal expires, fails to reach quorum, or is vetoed the deposited Evmos (minimum of 64) is burned. In the future governance will likely add Ethereum like burning fees to transactions, and other positive metrics. For now focusing on a capped supply, with demand drivers that the Cosmos developer kits provides was enough for me to invest. I try to be as transparent as possible with my investments. I sold my staked crystal for Defi Kingdoms into Evmos. Please remember to do your own research, stay safe out there, none of this is financial advice. Thanks!

[1] https://docs.evmos.org/users/basics/tokens.html

Patrick O’Neil

About Patrick O’Neil

Co-Founder

Patrick is an avid technology and gaming enthusiast. Patrick taught himself how to assemble computers in 2010 and was always fascinated with the gaming market. In 2019 he decided to sell his grayscale Ethereum funds and dive into the world of crypto firsthand. 

Learn More