Klaytn (KLAY) Surges 106% After New Governance Proposal
This October 23, Klaytn, a metaverse and gamefi-focused public blockchain, announced a governance proposal to reduce its block rewards.
According to an official statement, the new Q3 updates submitted to the Klaytn Governance Council (GC) seek to optimize the issuance level of KLAY tokens through a governance proposal that lowers block rewards by ⅓.
The reduction attempts to solve the present macromarket volatility that has caused the failure of numerous projects and bankrupted numerous crypto firms.
“The current macroeconomic landscape is causing unprecedented volatility in the crypto markets, and the current level of token emissions is not optimal in facilitating value accrual for KLAY.”
Block rewards per KLAY would decrease from 9.6 to 6.4 KLAY, with 50% going to the GC, 40% going to the Klaytn Growth Fund (KGF), and 10% going to the KLAY Improvement Reserve.
The anticipated reduction was determined by comparing the demand for the tokens to their current circulation rate. By lowering KLAY inflation, the team hopes to attract more new investors, increase its competitiveness, and maintain the long-term viability of KLAY’s tokenomics.
On October 20 of last year, KLAY/USDT was listed on the spot market by Singapore-based cryptocurrency exchange Phemex. The token’s price rose by 26% the following day, from $0.12 (the price’s annual low) to $0.15.
Despite the crypto winter and the market slump, crypto game projects and platforms focused on the metaverse are experiencing greater popularity and investment development. Additionally, to support this emerging market, approximately $4 billion has already been invested in cryptocurrency games, metaverses, and incubators as of 2022.
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