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

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.

Interpretation of this information:

The Klayton Foundation has proposed a plan for building a sustainable and verifiable KLAY token economy. The proposal has been approved by all 26 members of the Governance Committee who participated in the vote. The proposal includes the removal of 5.28 billion KLAYs that have been unused in the last 3 years and 8 months from the initial issuance reserve of 7.48 billion KLAYs. An additional 2 billion KLAYs will be burned within 3 years if no use cases are found. The Klaytn Growth Fund and Klaytn Improvement Reserve will be merged to create the Klaytn Community Fund, and a new operating fund called the Klaytn Foundation Fund will be established.

Interpretation:

The KLAY token economy is a blockchain-based system that aims to provide a sustainable and verifiable way to store and transfer value. The Klayton Foundation, which oversees the development and maintenance of the KLAY ecosystem, has proposed a plan to ensure the sustainability of the system. The plan includes removing unused KLAY tokens from circulation, merging funds to create more efficient management, and establishing a new operating fund.

The proposal has been approved by the Governance Committee, which is responsible for overseeing the development and governance of the KLAY ecosystem. This indicates that the proposal has received support from key stakeholders in the KLAY ecosystem and is likely to be implemented soon.

The removal of unused KLAY tokens from circulation will help to reduce the supply of KLAY tokens available in the market, which can help to maintain the value of existing KLAY tokens. The merger of funds will create more efficient management and better allocation of resources. Overall, the proposed plan is a step towards building a more sustainable and efficient KLAY token economy.