An altcoin from the metaverse sector is skyrocketing following a new community proposal that will affect its tokenomics.
Klaytn (KLAY) is a public enterprise blockchain focused on artists, non-fungible tokens (NFTs), gaming and entertainment.
Klaytn is currently being rebuilt into a “metaverse scale” blockchain, with multiple milestones lined up for the next two years or so, including changes in developer support, governance and updates to make the chain Ethereum (ETH) compatible.
The project’s community has proposed a new update to tokenomics that would reduce block rewards by one third.
The change would see block rewards go from 9.6 KLAY per newly minted block down to 6.4 KLAY. Half of all rewards will be allocated the ecosystem’s Governance Council, 40% will go to the Klaytn Growth Fund and 10% will end up at the Klaytn Improvement Reserve.
The proposal says that the new tokenomic structure aims to reflect changes in the global macro economic climate.
“In order to facilitate sustainable growth, tokenomics should be designed to drive demand for KLAY; in optimal scenarios, inflation and circulation should aim to be delta neutral in relation to demand. Achieving this balance is critical to the security and economics of Klaytn’s ecosystem.
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 accruement for KLAY. Ultimately, in order to continue building momentum for the sustainable growth of the Klaytn ecosystem, Klaytn block rewards — thus token inflation — should be adjusted to reflect current macro conditions.”
Following the release of the proposal, KLAY ignited a powerful rally, going from a low of $0.13, all the way up to the $0.27 mark, representing a 108% gain in a matter of hours.
At time of writing, KLAY is changing hands for $0.19, which is 95% down from its all-time high of $4.34.
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Featured Image: Shutterstock/issaro prakalung/Sensvector
