• Klaytn recently passed a governance proposal to burn nearly 50% of its token supply, a move that contributes towards making KLAY more valuable eventually.
• Klaytn will gradually transfer its decision-making authority to the community, allowing token holders users to have a say on who sits on Klaytn’s Governance Council (GC).
• The Klaytn platform intends to establish KLAY as a deflationary asset and provide more tools for developers intending to launch products on the network.
Klaytn Blockchain Technology
Klaytn is a public blockchain platform developed by South Korean internet giant Kakao Corp., designed with scalability and usability in mind. Recently, the platform passed a governance proposal to burn nearly 50% of its token supply, contributing towards making KLAY more valuable eventually. Additionally, it will also launch a permissionless network pilot in the second half of 2023 on its Cypress mainnet.
Increasing Demand for KLAY Tokens
Klaytn aims to increase the demand and value for its native KLAY tokens by providing more tools for developers intending to launch products on the network. It is currently exploring ways such as identifying key crypto infrastructure services where KLAY can be used and utilizing decentralized oracles which feed information from the world into a blockchain system. Through these initiatives, Klaytn hopes users will transact using their native tokens, leading to more gas burns over time.
Community Governance Council
To ensure decentralization and transparency within the network, Klaytn plans to establish community governance council selection and dismissal processes. This allows token holders users to have an influence on who sits on Klaytn’s Governance Council (GC). The GC is responsible for overseeing governance of the Klaytn network and assists in creating policies that improve user experience while maintaining decentralization within the protocol’s framework.
Deflationary Asset
The roadmap seeks to make KLAY an effective deflationary asset by relying heavily on gas burns instead of inflationary strategies like minting new tokens or using staking rewards as incentives for validators. This effectively reduces supply over time which increases demand due to scarcity dynamics present in Bitcoin’s halving events — reducing miner rewards every 4 years leads miners take other actions such as increasing fees or exiting mining altogether due lack of profitability caused by reduced block rewards.
2023 Roadmap Goals
Klanyt’s 2023 roadmap outlines several goals — establishing an effective deflationary asset through gas burns rather than inflationary methods; establishing community governance council selection processes; launching permissionless network pilot on Cypress mainnet; increasing transactional utility through use cases such as decentralized oracles; and identifying key crypto infrastructure services where KLAY can be used.