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 proposal to reduce the network’s block rewards because of the current market situation.
GC Proposal Vote Results: PASS
👥 26 of 36 GC members participated
🗳 All 26 voted “PASS”As a result:
1️⃣ 9.6 KLAY ➡️ 6.4 KLAY minted per block
2️⃣ New allocation ➡️ GC 50% / KGF 40% / KIR 10%
3️⃣ 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.
📢 $KLAY Buyback Announcement
To stabilize Klaytn’s ecosystem, a buyback is in progress:
1️⃣ Klaytn Foundation’s stablecoin reserves will be used
2️⃣ Only through spot purchases from the market (CEX)
3️⃣ 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 🥇 LunarCrush AlternativeRank™ 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.
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