EOS determined to remove around 34 million EOS worth $167 million from the entire circulation supply permanently. This huge burn was mainly done in order to lower the inflation rate on the blockchain from 5 to 1 percent.
On July 31, 2015, 15 or more of EOS's 21 producers voted for an initiative to burn 34 million idle EOS tokens from the blockchain's savings account.
The Savings account was being formed in January 2018 when EOS was released. However, the account was inactive for the last eight months, where it was just collecting funds and not distributing any. Around 3.6 million EOS ($17 million) are issued and then stored in the eosio.savings account on a monthly basis. The amount is increasing just because of inflation.
The EOS Blockchain grows at an inflation rate of 5% every year. 4% of inflation is mainly stored in the eosio.savings account and 1% goes into the account of block producers.
Due to this reason, the latest move was issued to remove the 4% inflation and store the 1% inflation for block producers. The move has got a lot of support from the whole community. The Voting process for the move will end on the last date of May.
The proposal stated that,
"This large quantity of accumulated tokens has now become excessive and if we continue to allow it to keep growing, it will eventually become an attack vector for the network."
Later on, May 7, the latest drive was undertaken and 34,171,037 EOS were forever removed from the circulation. Actually, ‘eosio.saving’ account sent 34,171,037.4625 EOS tokens, to the ‘eosio account (see transaction). But, this removal doesn't disturb the forthcoming contributions to the savings account and inflation payments will still be considered until the vote reducing inflation is passed.
This drop in the overall circulating supply is a blessing for all the EOS token holders. According to the law of supply and demand, each of the left tokens now portrays a higher proportion of the network's value.