Klaytyn (KLAY), a public blockchain focused on the Metaverse, gamefi and creator economy, has announced a massive token burn of 5.296 billion coins for its native cryptocurrency, KLAY.
According to the statements of the developers, this equates to about 50% of its total supply, which was previously 10.5 billion KLAY.
The token burn was part of a governance proposal called KGP-6, which was accepted by the Klaytyn Governing Council, a group of 30 consensus nodes that operate and manage the network.
KGP-6 also included the allocation of Klaytn 0.197 billion to GroundX, the company that developed Klaytyn, and the rebalancing of remaining funds into three new funds: Klaytn Community Fund (KCF), Klaytn Foundation Fund (KFF) and Klaytn Value Creation Reserve (KVC).
According to the official announcement on Twitter, the token burning took place on block 119750400 on April 16, 2023. The tweet also provided a guide on how to check the rebalancing status for the treasury using Klaytnscope, a blockchain explorer for Klaytyn.
Klaytyn claims that the tokenomics revision aims to create a more sustainable and verifiable blockchain ecosystem that can support the growth of metaverse and other Web3 applications. The new funds will be used to encourage developers, users and partners who contribute to the network.
Klaytyn was launched by South Korean internet giant Kakao in June 2019. It is one of the dominant blockchain platforms in South Korea and has partnered with various businesses and services such as LG Electronics, Shinhan Bank, Binance, and Samsung Blockchain Wallet.
*Not investment advice.