#Upbit Warning Regarding IOST Transformation#

Upbit, a South Korean cryptocurrency exchange, has issued a cautionary notice regarding IOST's upcoming Layer 2 transition. IOST plans to issue 21 billion new tokens and reform its tokenomics, which could lead to short-term price fluctuations. Upbit's warning follows the guidelines of the Digital Asset Exchange Alliance (DAXA), which mandates informing users of significant network or tokenomics changes that may affect asset stability. While the IOST transition is not a trading suspension or delisting announcement, DAXA has focused on this Layer 2 transition due to its potential for significant impact on traders. The IOST team intends 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 existing Layer 1 network with the new Layer 2 network. The new tokens will be issued 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.