#Upbit Warning on IOST Transition#

Upbit exchange has issued a cautionary notice regarding the Layer 2 transition of IOST, reminding investors of potential risks. IOST plans to implement its Layer 2 transition by issuing 210 billion new tokens and reforming its token economics. This transition will result in significant changes to the network structure and token economics, potentially causing short-term volatility in the token price. Upbit's warning follows the guidelines of the Digital Asset Exchange Alliance (DAXA) in Korea, which mandates informing users when significant network or token economic changes might impact asset stability. While Upbit has not suspended or delisted IOST trading, DAXA emphasizes the potential significant impact of the Layer 2 transition on traders. The IOST team plans to use the new tokens to support validator rewards, user incentives, and future ecosystem development, as well as enhance transaction processing capacity, improve efficiency, and reduce transaction fees by connecting the Layer 1 and Layer 2 networks. The new tokens will be issued gradually in phases for different purposes, including validator rewards, airdrop events, community incentives, developer funding, governance activities, and team compensation.