The nonprofit Klaytn Foundation has put forward a proposal to burn 5.28 billion KLAY (73% of the coin reserve) for consideration by the board. If adopted, the total supply would be reduced by 48%.
? Securing a Sustainable and Verifiable Token Economy ?
The #Klaytn Foundation has reviewed the current status of $KLAY tokenomics and has released a GC proposal on a new sustainable tokenomics structure.
Read our blog article for more details:https://t.co/Z4DIb4Ycos
— Klaytn (@klaytn_official) February 22, 2023
The initiative will be considered from February 22 to 28. It aims to transform Klaytn into a “sustainable and verifiable decentralised network”.
The proposal also envisages measures to enhance transparency of disclosures and to alter the governance structure of ecosystem resources.
There are 3,07 млрд KLAY in circulation. The proposal has decreased by 75,4 млн монет as a result of strategic buybacks and burning gas.
197 million KLAY have been reserved for the blockchain developers, GroundX, as compensation for developing the infrastructure, operating the network and governance services.
The reserve fund has remained untapped for the past three years and eight months.
If approved, the remaining 2 billion KLAY would be designated as a “buffer for value creation.” It would be intended only for use cases oriented toward deflationary tokenomics. In the absence of such options, the 2 billion KLAY would be taken out of circulation over the next three years.
“The Klaytn Foundation seeks to increase demand for the coins in several ways: first, by increasing network engagement through collaboration with major portfolio projects, and by promoting services in the ecosystem, especially dapps, which aim to “use and burn” KLAY as their primary tokenomics model,” — the proposal states.
The organisation intends to increase the utility of the coins by delivering infrastructural services such as oracles, and by investing in high-potential-growth projects. Profits from the latter will remain in the ecosystem and be deployed to increase demand for the asset.
In August 2022, the 1inch Network announced the deployment of liquidity-aggregation and order-routing protocols on the Klaytn network.