Feb 28
2 min read
Klaytn Tokenomics Optimization Governance Proposal (KGP-6) Result
TL;DR:
GC Proposal Vote Results: PASS
- 26 of 31 GC members participated
- 100% voted “PASS”
On February 22nd, the Klaytn team submitted KGP-6 to the Klaytn Governance Council (GC) recommending the optimization of KLAY tokenomics, with the aim of securing a more sustainable and verifiable token economy,
26 of 31 GC members participated in the proposal, and 100% voted to pass the proposal.
As-Is Tokenomics
- The total supply of KLAY, including the amount issued during the Token Generation Event (TGE) at the launch of the Klaytn mainnet and the amount generated from block rewards, totals approximately 11 billion KLAY, of which approximately 3.073 billion KLAY is currently in circulation.
- Current emissions have been reduced to 6.4 KLAY being issued per block, totaling approximately 200 million KLAY annually.
- Over 75 million KLAY has been burned to date through strategic buybacks and the burning of gas fees.
To-Be Tokenomics (Proposal)
- The Foundation looks to initially burn and remove 5.28 billion KLAY that has not been used in the last 3 years and 8 months.
- An additional 2 billion KLAY will be burned and removed from supply in 3 years if no use case is found in collaboration with Klaytn’s Governance Council (GC) and community.
- The Klaytn Growth Fund (KGF) and Klaytn Improvement Reserve (KIR) will merge and be re-established as the Klaytn Community Fund (KCF), while a new operational fund, the Klaytn Foundation Fund (KFF) will be established.
The initial burn of 5.28 billion KLAY and rebalancing of ecosystem funds will coincide with the upcoming Kore hardfork, currently scheduled for early Q2.
With the long-term goal of establishing KLAY as a deflationary asset in mind, we will continue to support the growth of KLAY demand while managing KLAY supply by implementing management models that will allow more visibility into token emissions.
