#Upbit Warning on IOST Transformation#

Upbit, a South Korean cryptocurrency exchange, issued a cautionary notice regarding the upcoming Layer 2 transformation of IOST, alerting investors to potential risks. IOST plans to issue 21 billion new tokens and reform its tokenomics, which may result in short-term price volatility. Upbit's warning follows the guidelines of the Digital Asset Exchange Association (DAXA) of Korea, aimed at safeguarding investor interests and notifying users about significant network or tokenomics changes that could affect asset stability. While IOST's transformation is not a trading suspension or delisting announcement, DAXA believes the Layer 2 transition may have a substantial impact on traders. The IOST team intends to utilize the new tokens to support validator rewards, user incentives, and future ecosystem development. They also aim to enhance transaction throughput, boost efficiency, and reduce transaction fees by connecting the existing Layer 1 network with the new Layer 2 network. The new tokens will be issued gradually in phases, with 60% allocated for validator rewards, 20% for airdrop events, 8% for community incentives, 5% for developer funding, 4% for governance activities, and the remaining 3% for team compensation and other expenses.