Klaytn pumps after proposal to reduce block rewards passes News โธ Price Watch
Klaytn pumps after proposal to reduce block rewards passes
Social sentiments surrounding the KLAY token is currently bullish as the asset currently leads LunarCrush AlternativeRank combined social and market activity.ย
2 min read
Updated: Oct. 25, 2022 at 9:44 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Klaytn network’s KLAY is up more than 30% to $0.2055, making it one of the best-performing digital assets this week, according to CryptoSlate data.
Proposal to reduce block rewards
Klaytn Governance Council (GC)has approved a proposalย to reduce the network’s block rewards because of the current market situation.
GC Proposal Vote Results: PASS
๐ฅ 26 of 36 GC members participated
๐ณ All 26 voted "PASS"As a result:
1๏ธโฃ 9.6 KLAY โก๏ธ 6.4 KLAY minted per block
2๏ธโฃ New allocation โก๏ธ GC 50% / KGF 40% / KIR 10%
3๏ธโฃ Adjustment will be reflected on-chain mid-NovRead more: https://t.co/96S7kVQ8Nm
— Klaytn (@klaytn_official) October 24, 2022
According to the proposal, block rewards would be cut from 9.6 KLAY to 6.4 KLAY per block. Newly minted tokens would also be distributed in a new format, with 50% of it going to the GC, 40% to the Klaytn Growth Fund, and 10% to the Klaytn Improvement Reserve.
Klaytn developers said its intention for the proposal was to “address the volatility currently seen in the macro markets.” The team wrote:
“As a result of the negative situation in the global economy and the crypto market and the increased circulation of KLAY in the Klaytn ecosystem, KLAY price is experiencing a dramatic decrease. We need to respond to the situation by adjusting the amount of minted KLAY.”
Klaytn foundation initiates token buyback
Another catalyst for the positive performance of KLAY is the token buyback initiated by the Klaytn Foundation.
๐ข $KLAY Buyback Announcement
To stabilize Klaytnโs ecosystem, a buyback is in progress:
1๏ธโฃ Klaytn Foundation's stablecoin reserves will be used
2๏ธโฃ Only through spot purchases from the market (CEX)
3๏ธโฃ All KLAY purchased will be burntMore details: https://t.co/rRCQr46ndM pic.twitter.com/TpuWawGtzo
— Klaytn (@klaytn_official) October 24, 2022
According to a blog post, an abnormal fluctuation was discovered in the token’s on-chain liquidity on Oct. 21, and a buyback was initiated to stabilize the ecosystem. The team stated that Klaytn’s foundation stablecoin reserves would be used to fund the purchase.
Apart from that, the Foundation continued that the purchase would be made via centralized exchanges to minimize volatility, and all repurchased tokens would be burnt.
Klaytn Foundation did not reveal the number of tokens it will buy and what it is spending on the purchase.
Bullish social sentiments
LunarCrush data revealed that social sentiments surrounding the KLAY token are currently high. According to the data, the token’s social mentions rose by 471.7%, and social engagements increased by 717.4% to 6 million.
Something special is happening in the @klaytn_official community with $klay spending more than 24 hours in the Number ๐ฅ LunarCrush AlternativeRankโข with leading combined social and market activity.
Insights: https://t.co/M2Ibg9zd1F #klaytn pic.twitter.com/OoS443vxK6
— LunarCrush (@LunarCrush) October 24, 2022
The asset also currently leads LunarCrush AlternativeRank with leading combined social and market activity.
Posted In: Price Watch
Author 
Oluwapelumi Adejumo
Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Klaytn is Kakao’s enterprise-grade, service-centric platform that aims to bring a user-friendly blockchain experience to millions of users.
