In a notable development within the Cosmos ecosystem, Evmos co-founder Akash Khosla returned 59 million EVMOS tokens to the Evmos Foundation. This followed allegations in May 2023 that Khosla attempted to sell large amounts of EVMOS tokens, causing investor concerns.
Following the former executive’s return of allocated assets, the Evmos Foundation is expected to adjust the token allocation for the current team and developers. The returned tokens, valued at $7.6 million, were partly owned by Khosla and the rest by the team. Khosla stated that the decision to return the tokens was made in the interest of the project and community, ensuring that those actively contributing to the project’s growth and development hold the tokens.
Khosla had left Evmos due to disagreements last year, and the project’s development continues under the leadership of Evmos Foundation’s Federico Kunze Küllmer. Evmos is a Cosmos-supported blockchain network compatible with applications on the Ethereum network, and in November 2022, the team raised $27 million in a funding round led by Polychain Capital.
The token return coincides with the Evmos community’s efforts to improve the project’s tokenomics, particularly addressing the high inflation that has been a significant factor in the token price decline since its 2022 launch. The token’s value has seen a substantial drop from its initial trading price of $6.8 in April 2022 to around $0.13, a 98% decrease according to Tradingview data.
Recently, Evmos took decisive steps to stabilize its token value, including the community’s approval of a proposal to burn 136 million tokens from the user incentives balance as part of an upcoming network upgrade.