In a significant turn of events, according to The Block, Akash Khosla, a co-founder who parted ways with Evmos, has reached an agreement to return 59.4 million tokens, equivalent to $7.6 million, to the Evmos Foundation, a blockchain within the Cosmos ecosystem. This action aims to realign the token distribution, focusing on Evmos’ current team and contributors.
The token return follows allegations from May 2023, claiming that Khosla attempted to sell large amounts of Evmos’ native token on the market, raising concerns at that time. This act is considered a measure to mitigate potential consequences of his departure and restore trust in the Evmos community.
We are pleased to announce that all vested and unvested EVMOS tokens from former Evmos co-founder Akash Khosla have been returned to the Evmos Foundation.
This agreement marks a new phase of our project and we’re looking forward to this new journey full of growth, success, and…
— Evmos ☄️ (@EvmosOrg) January 9, 2024
The total amount of returned tokens is 59.4 million, covering both vested and unvested tokens. Approximately 32 million of these tokens belonged to Khosla, while the rest were unallocated team tokens. A confidential agreement was reached between Khosla and the Evmos Foundation to facilitate this return.
Khosla, in explaining his decision, emphasized that returning the tokens is the best option for the project and the community. He assured that this action ensures Evmos tokens are in the hands of those actively contributing to the project’s growth and development, marking a commitment to the ongoing success of Evmos.
Evmos Aims to Revitalize the Position of its Token in the Market
Khosla’s departure from Evmos last year was due to operational disagreements, and in his absence, the project’s development is being led by Federico Kunze Küllmer, the director of the Evmos Foundation. The token return is presented as an essential step to establish a balance in the project’s wealth distribution and strengthen Evmos’ current position in the market.
Evmos, backed by Cosmos and compatible with Ethereum applications, has been working to improve its tokenomics to address the high inflation that contributed to the token’s value decline since its launch in 2022. Notably, the token return aligns with the community’s efforts to stabilize the token’s value.
In terms of historical performance, the Evmos token experienced a massive drop, decreasing by 98% from its initial price of $6.8 in April 2022 to approximately $0.13 currently. The Evmos community seeks to improve this situation, having recently approved the burning of 136 million tokens in a network upgrade to address concerns about inflation and strengthen the token’s position in the market.
