Klaytn (KLAY), a public blockchain focused on the metaverse, gamefi and the creator economy, has submitted a proposal to the Klaytn Governance Council (GC) that would reduce its block reward. The proposal recommends decreasing current block rewards by a third, in an attempt to improve the level of KLAY emissions. The vote to approve the proposal will conclude on 25 October. If passed, the team behind the crypto said “the inflation adjustment will be reflected on-chain around mid-November”. There are 36 GC members with 10 having already voted.
Macro market volatility sparked block reward rethink The Klaytn team said the proposal was intended to “address the volatility currently seen in the macro markets”. The team explained that the current macroeconomic landscape is resulting in “unprecedented volatility” in the crypto markets. The proposal, explained the team, is meant to build “momentum for the sustainable growth” of Klaytn. If passed it would result in the block reward going from 9.6 KLAY to 6.4 KLAY per klaytn. The allocation of this newly-minted amount would see 50% going to the GC, 40% to the Klaytn Growth Fund (KGF), and 10% to the Klaytn Improvement Reserve.