- Klaytn Foundation has announced significant changes to blockchain governance and tokenomics. The new initiatives are expected to increase the sustainability and decentralization of the blockchain.
- The goal is to broaden its scope and capabilities to support the development of new network applications and services.
South Korea’s leading layer one blockchain, Klaytn, will undergo a series of significant changes to its governance structure and tokenomics shortly.
The Klaytn Foundation claims that the new system will improve the Klaytn network’s overall technical capabilities, revenue sustainability, and decentralization.
The modifications are consistent with the blockchain’s governance roadmap first unveiled in 2019 alongside the launch of the Klaytn mainnet.
Klaytn Foundation to Assume Control from Krust Universe
According to Klaytn’s announcement, the changes unveiled by the foundation aim to enhance sustainability, decentralization, and the overall technical prowess of the Klaytn blockchain ecosystem.
Following its development and stabilization phases, Klaytn is now in its decentralization phase – the final stage of its governance roadmap.
The foundation will help the Klaytn blockchain switch to an utterly permissionless validator structure. It will also allow the general public to participate as block validators and set up a way for Klaytn’s community members to talk to each other and participate in decision-making processes. This is intended to increase participation from members of the community.
In addition, the Klaytn Foundation will take over the day-to-day network operations from Krust Universe, its original developer. The goal is to increase its scope and capabilities to facilitate the creation of new applications and network services.
The foundation will work with the Klaytn Governance Council (GC), a group of network participants in charge of running the Klaytn network, to make these changes.
One of the most crucial parts of any blockchain is the validators, whose job is to verify the transactions on that network.
The foundation will keep making decisions about Klaytn ecosystem expansion projects and coming up with big plans for the Klaytn platform. The GC members’ ability to make decisions about the Klaytn blockchain business will grow. The foundation will promote projects based on what the GC members decide instead of what the foundation chooses to do.
The foundation will also make governance more open by letting Klaytn Square, a governance protocol, show GC’s on-chain voting agendas and statuses in real time.
Starting today, the foundation will present a revamped tokenomics proposal to the Klaytn Governance Council, including a recommendation on handling uncirculated (reserve) KLAY tokens in response to community feedback. The Governance Council will vote from the 22nd through the 28th of February.
Dr. Sangmin Seo, Representative Director of the Klaytn Foundation, in commenting on the changes, stated;
“With our new initiatives, the Klaytn blockchain has an opportunity to take yet another step towards decentralization. The foundation remains steadfast in its commitment to advancing blockchain technology, fostering community trust, and relentlessly working towards decentralization.”
Conclusion
In the past 24 hours, KLAY has gained more than 20% in trading volume. When writing, KLAY was trading at $0.03, a 7% increase from the previous day’s close.
The massive increase in the price of the native token KLAY demonstrates how eager investors were to get in on the action following the latest developments in the Klaytn ecosystem.
