Klayton Foundation Approves Proposal for Sustainable KLAY Token Economy

03/01/2023 00:10 • AI Insights • 114 views

According to the report, according to the official news, the proposal of “building a sustainable and verifiable KLAY token economy” put forward by the Klayton Foundation has been voted by the members of the Governance Committee (GC). 26 of the 31 GC members participated in the vote and all approved the proposal. According to the proposal: 1. First, destroy and remove 5.28 billion KLAYs that have not been used in the past 3 years and 8 months out of the initial issuance reserve of about 7.48 billion KLAYs. 2. If no use cases are found in cooperation with Klayton’s governance committee (GC) and the community, another 2 billion KLAYs will be burned and removed from the supply within 3 years. Klaytn Growth Fund (KGF) and Klaytn Improvement Reserve (KIR) will be merged and re-established as Klaytn Community Fund (KCF), and a new operating fund Klaytn Foundation Fund (KFF) will be established.

Klaytn will carry out Kore hard bifurcation in Q2 and destroy 5.28 billion KLAYs in the initial issuance reserve

Analysis based on this information:

The Klayton Foundation recently voted in favor of a proposal to build a sustainable and verifiable KLAY token economy. The Governance Committee, consisting of 31 members, voted in favor of the proposal with a majority of 26 members participating in the vote. The proposal includes two main strategies to make the KLAY token economy more sustainable.

The first strategy is to destroy and remove 5.28 billion KLAY tokens that have not been used in the past three years and eight months out of the initial issuance reserve of around 7.48 billion KLAY tokens. This move will reduce the circulation of KLAY tokens in the market, which will eventually increase the token’s value. Removing unused tokens will also eliminate potential security risks and increase transparency in the market.

The second strategy is to burn and remove another two billion KLAY tokens within the next three years if no use cases are found in cooperation with Klayton’s governance committee (GC) and the community. The Governance Committee will have a say in the use cases and will work towards the sustainability of the KLAY token economy.

Apart from the strategies, the proposal also announced the merger of the Klaytn Growth Fund (KGF) and Klaytn Improvement Reserve (KIR) as a new operating fund, Klaytn Community Fund (KCF). Furthermore, a new operating fund named Klaytn Foundation Fund (KFF) will also be established for the efficient management of the KLAY token economy.

In conclusion, the KLAY token economy is moving towards sustainability with the recent proposal approved by the Klayton Foundation. The removal of unused tokens and the burning of tokens will create a more valuable token, which will be beneficial to investors. The merger of operating funds and the establishment of a new fund will also ensure the efficient management of the KLAY token economy. The Governance Committee’s cooperation with the community will also lead to more significant and sustainable use cases for the token.

Overall, the proposal is a positive development towards the sustainability of the KLAY token economy. It will increase transparency, eliminate security risks, and ensure a valuable token for investors.

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