#Upbit Warning on IOST Transformation#

Upbit exchange has issued a warning, alerting investors about the upcoming Layer 2 transition of IOST. IOST plans to issue 210 billion new tokens and reform its tokenomics, which may lead to short-term price fluctuations. Upbit's warning follows the guidelines of the Digital Asset Exchange Alliance of Korea (DAXA), which mandates notifying users when significant network or tokenomics changes may impact asset stability. While IOST's transition is not a trading suspension or delisting announcement, DAXA highlights the potential impact of this Layer 2 transition, as it could have significant implications for traders. The IOST team intends to use the new tokens to support validator rewards, user incentives, and future ecosystem development, as well as to enhance transaction processing capabilities, improve efficiency, and reduce transaction fees by connecting the existing Layer 1 network to the new Layer 2 network. The new tokens will be gradually issued in stages, utilized for validator rewards, airdrop events, community incentives, developer funding, governance activities, and team compensation.