Klaytn Developer Announces Update, KLAY Price Skyrockets Immediately!

Crypto developer Klaytn announced the proposal update. (Photo; Doc. Cryptoast)

JAKARTA – Amid the decline in the crypto market in recent months, the Klaytn public blockchain development team announced an important update to its project. The team provides governance proposal updates to reduce block rewards. Klaytn focuses on the metaverse and blockchain-based games.

The update was announced in the third quarter of 2022, precisely on October 23 yesterday. The proposal was submitted to the Klaytn GC/governance council aimed at optimizing the issuance rate of KLAY tokens by lowering its block reward by a third.

KLAY itself will only announce the voting results on October 25 tomorrow, as reported by the Klaytn team in its official Twitter post @klaytn_official.

“The proposal being put forward by our GC recommends reducing the existing block reward to optimize the $KLAY emission level. The results of the governance vote will come in on October 25, 2022", wrote Klaytn, Sunday, October 23, 2022.

The reduction is aimed at dealing with the volatility currently seen in the macro market, which has led to the collapse of several projects and the bankruptcy of several crypto companies.

“The current macroeconomic landscape is causing unprecedented volatility in the crypto market, and the current token emission level is not optimal in facilitating the accrual of value for KLAY", wrote developer Klaytn, quoted from CryptoPotato.

If the proposal is approved, later the block reward will change from 9.6 KLAY to 6.4 KLAY, distributed 50 percent to the GC, 40 percent to the Klaytn Growth Fund (KGF), and 10 percent to the Klaytn Improvement Reserve. The proposed deduction is calculated based on the current token circulation vs. their request. The team hopes to reduce KLAY's inflation making it more attractive to new investors and increasing its competitiveness while ensuring the sustainability of the Klaytn Tokenomic.

On October 20, Phemex, a Singapore-based cryptocurrency exchange, announced the listing of KLAY/USDT on the spot market. On the following day, the token increased 26 percent from 0.12 (which had been the lowest price annually) to 0.15 US dollars.

On the other hand, despite the crypto winter and crypto market downturn, crypto gaming projects and metaverse-oriented platforms recorded higher growth in terms of adoption and investment. In addition, by 2022, more than 4 billion dollars have been invested in crypto games, metaverses, and incubators to enhance this new industry.

As of writing, the price of the KLAY token is trading at the level of IDR 2,831. KLAY prices have skyrocketed 24 percent in the last 24 hours, according to Coingecko data. KLAY recorded the highest price of all time (ATH) on March 30, 2021. At that time, KLAY broke IDR 63,067 per token.