Evmos operates within the Cosmos ecosystem, providing a crucial connection to Ethereum. Initiated in 2022, the project has been backed by $27 million in investments.
Evmos Funding
Evmos originated as an initiative primarily financed by the community. The team at Tharsis Labs developed an open-source library tailored for establishing a Cosmos blockchain. This project was first announced in 2016 and was dubbed “Ethermint,” a term blending the Ethereum Virtual Machine and Tendermint, the latter being employed as the consensus protocol for Cosmos.
Later, the project attracted the backing of substantial investors who had an interest in developing a distinct port compatible with the Ethereum Virtual Machine (EVM).
These backers included companies that had prior collaborations with the developers at Tharsis Labs and saw the prospective capabilities of Cosmos:
- Galaxy
- Huobi
- Coinbase Ventures
- Circle Ventures
- Asymmetric
- Stateless Ventures
They required a PoS blockchain with high throughput, enabling the easy launch of DApps that could operate securely across various ecosystems. Achieving this was impracticable without a direct linkage to Ethereum, the world’s most extensive ledger.
Evmos makes the deployment of decentralized applications more straightforward as it allows developers to execute the same Solidity or Vyper smart contract code comparable to any other EVM blockchain.
Evmos’ Features
Evmos was developed to address a critical need. The central idea was to enable every blockchain to sustain its features and governance, all while being able to connect with other networks. Presently, this ecosystem integrates more than 20 collaborative blockchain initiatives and facilitates around 300 applications and services.
Evmos serves as a bridge, allowing the use of Ethereum as the blockchain for any specific Cosmos application. This offers developers the leverage to deploy PoS Tendermint and access all of Ethereum's sought-after features. Moreover, since Evmos is constructed on the foundation of the Cosmos SDK—a toolkit designed for creating open-source blockchains—it can interchange information with the entire Cosmos ecosystem through the Inter-Blockchain Communication protocol.
EVMOS Coin and Project's Tokenomics
EVMOS is the native payment token within the Evmos infrastructure, introduced during the inception of the project.
Here are the key metrics of the EVMOS token as of the time the overview was written:
- Price: $0.057
- Technology: ERC20
- Market Capitalization: $16.7 million
- Daily Trading Volume: $741,780
- Total Supply: 1 billion EVMOS
- Circulating Supply: 229.9 million EVMOS
EVMOS is utilized for staking, paying network fees, and participating in votes concerning the future development of the project. It’s clear that with this token, the developers have opted for a conventional approach instead of introducing something fundamentally innovative.
Initially, the distribution of EVMOS tokens was structured as follows:
- 32.00% allocated for staking rewards,
- 20.00% for user incentives,
- 20.00% reserved for the team,
- 10.00% for the overall liquidity pool,
- 10.00% earmarked for future initiatives,
- 8.00% for the airdrop.
After a complete launch and connection to DeFi projects, the structure has been adjusted:
- 40% to a strategic development fund,
- 50% for the airdrop,
- 10% to the liquidity pool.
EVMOS tokens cannot be mined as the Evmos blockchain employs a Proof-of-Stake mechanism.
A three-part system is currently operational, rewarding users for staking EVMOS tokens with rewards sometimes surpassing market averages, reaching up to 400%.
The platform distributes all transaction fees among active validators. It is projected that software developers will also receive a share of fees in EVMOS tokens, but the exact methodology is yet to be clarified.
As EVMOS has an inflationary structure, the rewards are essentially a percentage of token inflation, shared proportionally among all active network participants. Consequently, the staking reward ultimately isn't as significant as it seems.
When a validator successfully confirms a block to reach consensus, the network grants a bonus between 1% to 5%, depending on the number of commits from the preceding block.
Final Words
Overall, Evmos can be viewed as a project with considerable potential. It represents an efficient solution for enabling interaction between different blockchains. However, the intricate coding of the Cosmos SDK isn’t conducive to attracting external developers. The development of the project is being overseen by a relatively small team who were the original creators, so discussing true decentralization at this point is premature.
The high rewards for stakers, when closely examined, are found to be at a medium market level of profitability. It's advisable to always do your own research before investing in any cryptocurrency projects.
