Chiliz’s attempt to impress traders with its Dragon8 hard fork has fallen flat, as CHZ continues its downward trend despite claims of improved scalability, security, and efficiency.
Since June 10, the CHZ price has plummeted by almost 32%, hitting a low of $0.09 on June 17. Breaking below the important $0.1 mark could further shake investor confidence in the token. Despite news of the Chiliz hard fork, the bearish pressure has remained strong.
The Dragon8 hard fork, launched on June 17, brought about significant changes to the Chiliz Chain’s framework after facing delays due to implementation issues. Tokenomics 2.0 was introduced to address the limitations of the original token structure and enhance the sustainability of the Chiliz ecosystem.
The new tokenomics model features a decreasing annual inflation rate, starting at 8.80% and decreasing to 1.88% over 14 years. Integration of EIP-1559 aims to enhance economic efficiency by implementing a transaction fee-burning mechanism. With access to the latest version of Solidity, developers can create advanced applications within the Chiliz ecosystem, positioning the CHZ token as the protocol’s governance and gas token.
Despite the potential long-term benefits of the hard fork and new tokenomics, CHZ price is currently trapped in a bearish ‘descending triangle pattern,’ suggesting a further 44% drop to a projected price target of approximately $0.05. While Chiliz bulls are hopeful that the price action will reflect the project’s advancements, it may take time for a meaningful rally to materialize.