#Upbit Reminder of IOST Transformation#
Hot Topic Overview
Overview
Upbit, a South Korean cryptocurrency exchange, has alerted investors that IOST is planning a Layer 2 transformation, which will result in the issuance of 21 billion new tokens and a reform of the token economics. Upbit's warning follows guidelines set by the Digital Asset Exchange Alliance (DAXA) of Korea, which aims to notify users of significant network or token economic changes that may impact asset stability. While IOST's transformation is not a trading suspension or delisting announcement, DAXA has highlighted this Layer 2 transition due to its potential for significant impact on traders. The IOST team plans to use the new tokens to support validator rewards, user incentives, and future ecosystem development, and to enhance transaction processing capabilities, efficiency, and reduce transaction fees by connecting the existing Layer 1 network with a new Layer 2 network.
Ace Hot Topic Analysis
Analysis
Upbit reminds investors to exercise caution before IOST undergoes its Layer-2 transformation. IOST plans to implement a Layer-2 transformation, issuing 21 billion new tokens and reforming its token economics. This transformation will drastically alter the network structure of IOST and may lead to short-term fluctuations in token prices. Upbit's warning follows guidelines set by the Digital Asset Exchange Association of Korea (DAXA), which requires notifying users of significant network or token economic changes that may affect asset stability. While the IOST transformation is not a suspension or delisting announcement, DAXA highlighted the significant impact this Layer-2 transformation may have on traders. The IOST team plans to support validator rewards, user incentives, and future ecosystem development through the issuance of new tokens, and to enhance transaction processing capabilities, improve efficiency, and lower transaction fees by connecting the existing Layer-1 network with the new Layer-2 network. The new tokens will be issued in stages, gradually allocated for validator rewards, airdrop events, community incentives, developer funding, governance activities, and team compensation.
Public Sentiment · Discussion Word Cloud
Public Sentiment
Discussion Word Cloud
Classic Views
IOST's Layer2 transformation may lead to short-term price fluctuations of the token.
IOST will issue 21 billion new tokens, which may affect token economics.
Upbit and DAXA remind investors to be aware of the risks associated with IOST's transformation.
IOST's Layer2 transformation aims to enhance transaction processing capacity, improve efficiency and reduce transaction fees.