The native cryptocurrency of the MultiversX blockchain, EGLD, was first introduced as eGold. This name was selected to present the project’s vision of developing a digital asset that could function as a modern form of gold in the internet age. eGold was created to serve different functions such as security, scarcity, and long-term value in digital form.
The blockchain project later rebranded from Elrond to MultiversX. But the ticker symbol EGLD remains the same, a crucial part of its identity. Understanding why EGLD was called eGold helps blockchain enthusiasts and investors gain greater clarity about the project’s philosophy and goals.
What is EGLD?
It is the native cryptocurrency of the MultiversX blockchain. EGLD is used for staking and securing the network, paying transaction fees, transferring value across the blockchain, rewarding validators, and engaging in governance and ecosystem activities. The coin strengthens the whole MultiversX ecosystem and plays a major role in network operations.
What Does eGold Mean?
The term eGold stands for electronic gold. This name reflects the thought that digital assets could become the modern equivalent of precious metals like gold. Gold always has a high value because of its various characteristics, such as:
- Durability
- Limited supply
- Resistance to inflation
- Global recognition
- Long-term store of value
The EGLD creators aimed to have these qualities in the digital asset while benefiting from the blockchain technology. By naming the asset eGold, they wanted to announce to everyone that it was not any other cryptocurrency, but was intended to be scarce and valuable.
Why was Gold used as a Comparison?
For thousands of years, gold has been one of man’s most trusted stores of wealth. During times of uncertainty, investors often turn to gold because it retains value over the long term.
The creators of EGLD developed it with the belief that blockchain technology could build a digital asset with similar characteristics while removing some of gold’s limitations.
| Gold | eGold(EGLD) |
| Physical asset | Digital asset |
| Not easy to transport | Easily transferable |
| Requires storage | Stored in digital wallets |
| Limited supply | Fixed and controlled supply |
| Global value | Global accessibility |
The Scarcity Model of EGLD
The main reason for the eGold branding was the cryptocurrency’s scarcity. It has a fixed and controlled supply, which is quite the opposite of traditional currencies that the government can print in large quantities. This is a planned approach to create rarity similar to precious metals.
Scarcity of a digital asset or any product indicates value preservation over time. EGLD’s tokenomics was created around the thought that a limited supply could contribute to an increase in value as adoption grows. This is why the project’s name, eGold, was considered appropriate during its early development.
A Digital Store of Value
EGLD was created with the idea of presenting it more than as a payment token. While many cryptocurrencies focus mainly on transactions, eGold was also positioned as a store of value. This indicates that users could hold it as a long-term asset rather than using it for making payments.
The digital gold concept became popular in the cryptocurrency industry, especially after Bitcoin earned the name “digital gold”. eGold serves the purpose of a store of value along with high transaction speeds and advanced blockchain capabilities.
The Role of the Elrond Network
The blockchain was first named Elrond before changing its name to MultiversX. It was created to solve common blockchain issues, such as:
- Speed
- Scalability
- Low transaction costs
- Security
eGold was launched as a native digital asset that took complete advantage of these technological developments. The team behind it thought that combining a highly efficient blockchain and a scarce digital asset could form a solid foundation for widespread adoption.
Why the Ticker Symbol Remains EGLD?
Though the blockchain rebranded from Elrond to MultiversX in 2022, the ticker symbol remains the same. The reasons include:
- Brand recognition
- Historical value
- Market continuity
How MultiversX Expanded the Original Version?
The rebranding to MetaversX reflected a major focus on the metaverse, digital identities, virtual economies, and Web3 applications. That being said, EGLD is the foundation of the ecosystem. The asset performs the same functions, such as network security, value transfer, staking, payments, and ecosystem participation. Though the project’s ambitions expanded, the original principles- scarcity, utility, and long-term value- are still very important.
Benefits of the eGold Concept
The eGold concept offers many benefits:
- Simple to understand
- Strong value narrative
- Global appeal
- Long-term focus
Conclusion
EGLD was first called eGold because its creators wanted to develop a digital asset with all the qualities of the traditional precious metal, gold. The name suggested scarcity, value preservation, security, and global accessibility. By blending these aspects with a strong blockchain, the projects aimed to develop a modern store of value for the digital economy.
Though the Elrond network was rebranded to MultiversX, the ticker symbol EGLD was retained to remind us of the original eGold vision. Today, it functions as the main asset of the ecosystem while reflecting the idea of digital gold for the blockchain era.