• Klaytn Blockchain will focus on increasing KLAY token demand in 2023.
• This includes burning nearly 50% of token supply and utilizing decentralized oracles to increase transactional utility.
• The blockchain platform also intends to transfer decision-making authority to the community by launching a permissionless network pilot and establishing community governance council selection processes.

Klaytn Blockchain: Increasing KLAY Token Demand

Klaytn, a public blockchain platform developed by South Korean internet giant Kakao Corp., is aiming to increase demand for its native KLAY tokens in 2023. To accomplish this, the company has released a technology and developer road map that focuses on several initiatives that would make KLAY more valuable over time.

Burning Token Supply

Klaytn recently passed a governance proposal to burn nearly 50% of its token supply as part of its plan to make KLAY deflationary asset. By reducing the overall supply of tokens, it creates scarcity which increases the price of each token and makes them more desirable over time.

Utilizing Decentralized Oracles

Another key initiative outlined in Klaytn’s road map is identifying key crypto infrastructure services where KLAY can be used. This includes utilizing decentralized oracles, which are mechanisms that connect smart contracts with the outside world and feeds information from the world to a blockchain. By using these services, users can pay fees with KLAY which further increases transactional utility and leads to more gas burns (coin burnings).

Launching Permissionless Network Pilot

In order for Klaytn to transfer decision-making authority to the community, it will launch a permissionless network pilot in the second half of 2023 on its Cypress mainnet. This automates entry and exit of validators–the entities responsible for verifying transactions on that network–allowing token holders greater say on who sits on Klaytn’s Governance Council (GC). The GC currently oversees governance of the Klaytn network.

Conclusion

KLAY tokens are nominally used as gas fees when transacting with smart contracts on Klaytn’s blockchain platform, but they may soon become much more than just a transaction fee as Klaytn works towards making them an integral part of its technology roadmap in 2021-2022. With initiatives such as burning tokens, implementing decentralized oracles, and transferring decision-making authority to users via a permissionless network pilot, there is potential for increased demand for KLAY tokens over time.