Public Blockchain Klaytn Will Burn Half Of The Total Token Supply On April 17
- Klaytn will undergo a hard fork upgrade at block height 119,750,400 and will destroy about half of the total supply tokens.
- The burned tokens came from Klaytn’s treasury, minted during the mainnet launch in 2019.
- The remaining 2 billion tokens in reserve will be kept and used to fund future ecosystems.
According to TechinAsia, the South Korean public chain project Klaytn will undergo a hard fork upgrade on April 17 at block height 119,750,400, destroying over half of the entire supply tokens, or around 52.8 100 million KLAY (worth $1.3 billion at the time of writing).
The tokens destroyed were from Klaytn’s treasury (7,281 billion in total) and were produced during the mainnet debut in 2019. These tokens account for 48% of the entire KLAY supply. The remaining 2 billion tokens in the reserve will be held and utilized to support future states, but if consumption is not assured, they will be burnt within three years.
According to Sam Sangmin Seo, chairman of the Klaytn Foundation and one of its three representative directors, the percentage of the reserve to the total circulating supply of Klay was excessively high in comparison to other blockchains. This was also a major issue among prospective investors and developers.
“We wanted to remove the potential risk of shocking the market by releasing more tokens,” he said.
Moreover, Klaytn’s encrypted wallet Klip and blockchain API services are being developed by the project’s original creator, GroundX.
Last month, the Klaytn Foundation, the development organization supporting blockchain development, filed a proposal to the Governance Council for debate and voting to reduce the overall quantity of KLAY. The Fund will actively expand the ecosystem’s infrastructure, such as Oracle, as well as invest in companies with high growth potential, improving the overall network’s return value.
Klaytn said in the roadmap that it will identify critical crypto infrastructure services, such as decentralized oracles, where KLAY may be utilized to consume those utility services, enhancing transactional utility and resulting in additional gas burns.
Klaytn plans to conduct a permissionless network prototype on its Cypress mainnet in the second part of 2023. This automates the entrance and departure of validators or organizations that are responsible for confirming transactions on any blockchain.
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