Token gains traction on market thanks to governance proposal
A freshman on the cryptocurrency market, Klaytn has surprised traders with an enormous 100% breakthrough that happened in a matter of hours yesterday. The continuation of the rally put the cryptocurrency in first place in terms of 24-hour profitability.
Why KLAY is pumping
While the price performance on the daily chart of an asset shows almost no signs of a wild recovery like we saw yesterday, the official Twitter account of the project gives us a hint: emission.
According to the ongoing proposal shared on the governance portal of the project, users should decide whether to cut existing block rewards by one-third or leave them as they are now. The results of the governance vote will be available on Oct. 25.
The vote has been initiated by the Klaytn team with the intent of reducing the volatility effect currently seen in the macro-market. If the vote passes, the reward per block would stay at 6.4 KLAY instead of the existing 9.6 KLAY.
Despite the results of voting dropping only on the 25th, most ecosystem participants believe that rewards per block will be reduced. Since the total emission of KLAY is dropping, investors are actively increasing their holdings while being afraid of a supply shock that remains a possibility.
Klaytn is an entertainment-focused blockchain that is part of the metaverse, GameFi and creator industry. It was officially launched back in June 2019 and focused on the South Korean market while undergoing global business expansion.
KLAY acts as a native token of the Klaytn protocol. The total supply of the token is 10 billion, issued at genesis with 2.6 billion KLAY in circulation.