Klaytn Foundation Proposes Burning 48% of Total Supply of KLAY
Klaytn Foundation, the organization behind the development of the Klaytn blockchain, has proposed a reduction in the total supply of KLAY to the Governance Council for discussion and voting. The proposal will be discussed and voted on by the Governance Council from February 22nd to 28th.
The current total supply of KLAY stands at approximately 11 billion, with 3.073 billion in circulation. In an effort to establish KLAY as a deflationary asset, the Klaytn Foundation has proposed the immediate burn and removal of 5.28 billion KLAY that has not been used in the last 3 years and 8 months. An additional 2 billion KLAY will be burned and removed from supply in 3 years if no use case is found in collaboration with Klaytn’s Governance Council.
Additionally, the Klaytn Growth Fund and Klaytn Improvement Reserve will merge to form the Klaytn Community Fund, while the Klaytn Foundation Fund will be established. The Governance Council will lead all reviews and approvals, which will be conducted in public forums.
The proposal to burn 48% of the total supply of KLAY is part of the ongoing restructuring process of Klaytn, which aims to allow ordinary users to participate as validators in transaction verification and establish a mechanism for KLAY holders to participate in tokenomics management.
Despite the recent strong recovery in the price of KLAY in line with the overall cryptocurrency market, the total value locked (TVL) on the Klaytn blockchain currently stands at only $192 million, ranking 15th in the list of blockchains with the highest TVL. The 24-hour trading volume on the blockchain is only $25 million, according to DeFiLlama statistics.
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