Klaytn Foundation Proposes A Massive Token Burn Exercise

• Klaytn Foundation submitted a proposal to burn over 5 billion KLAY tokens.
• 2 billion KLAY will be set aside as “Klay Value Creation Reserve”.
• All transactions from the reserve will be approved by the Klaytn Governance Council.

According to a tweet by Collins Wu, a Chinese blockchain reporter, the Klaytn Foundation has submitted a new proposal to the Klaytn Governance Council (GC). The proposal aims to optimize and revise the tokenomics of Klaytn, and enable the project to secure a more sustainable and verifiable token economy.

The KLAYTN Foundation initiated a KGP-6 proposal, 7.281 billion unspecified Reserve Klay Token was immediately destroyed by 5.281 billion (73%); the remaining 2 billion KLAY would be destroyed within 3 years. https://t.co/XPk1RsLznP..

— Wu Blockchain (@WuBlockchain) February 22, 2023

The new proposal tagged the KGP-6 proposal will destroy 7.281 billion undesignated KLAY tokens and designate a balance of 2 billion tokens as the “KLAY Value Creation Reserve” for three years tentatively. The foundation also wants to seize the opportunity to restructure the treasury management system of the Klaytn ecosystem.

Kakao, the South…

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