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Why the Mass Adoption Trifecta is Essential for Blockchain Ecosystems
Cryptocurrency adoption has undoubtedly increased in recent years, both in terms of retail and institutional use. But now, after a year in which the market has declined significantly and many people have left, it appears that much of this was driven primarily by speculation. In this regard, the industry still has a long way to go. What’s stopping crypto from achieving mass adoption? Decentralized application (dApps) development has been steadily increasing, but with the exception of a few, not many have seen mass adoption in the traditional sense. One of the challenges is long-term sustainability...
Why the Mass Adoption Trifecta is Essential for Blockchain Ecosystems
Cryptocurrency adoption has undoubtedly increased in recent years, both in terms of retail and institutional use.
But now, after a year in which the market has declined significantly and many people have left, it appears that much of this was driven primarily by speculation. In this regard, the industry still has a long way to go.
What’s stopping crypto from achieving mass adoption?
Decentralized application (dApps) development has been steadily increasing, but with the exception of a few, not many have seen mass adoption in the traditional sense.
One of the challenges is the long-term sustainability of ecosystems in industry. Many of the projects have tokenomics that struggle to create a virtuous cycle of supply and demand or even intrinsic value.
Furthermore, recent high-profile collapses of opaque and centralized entities in the cryptosphere have not only set mass adoption back years, but have also highlighted the urgent need for crypto to return to its roots of trustlessness and decentralization.
The mass adoption trifecta
Given these issues, the team at Klaytn – a leading open-source blockchain from South Korea – was able to identify what they call the trifecta of mass adoption: sustainability, verifiability and collectivity. However, the team is aiming for the so-called Mass Adoption Trifecta.
Without sacrificing their long-term vision, the team was able to create an effective 2023 roadmap that included three goals and 18 initiatives that would accelerate their goal of achieving the Trifecta.
These goals include:
sustainability
Achieving ecosystem sustainability in the context of a blockchain project requires a strong technological foundation as well as a well-designed tokenomics system.
To address these issues, the Klaytn Foundation has presented a proposal to optimize its tokenomics to establish its native KLAY token as a deflationary asset while promoting a secure, sustainable and verifiable token economy.
The proposal calls for initially burning 5.28 billion KLAY out of the total 7.48 billion KLAY that are not in circulation. The remaining 2 billion will be burned after 3 years if no use case is found through collaboration with the protocol's Governance Council (GC).
In addition, the proposal envisages merging the Klaytn Growth Fund and the Klaytn Improvement Reserve and restructuring them into a Klaytn Community Fund and a Klaytn Foundation Fund. The GC and the community would take the lead in decision-making and use of funds.
Ultimately, the goal of the proposal is to establish KLAY as a safe, sustainable and deflationary asset while increasing trust in the Klaytn ecosystem.
Verifiability
Achieving trustlessness is a key challenge that many blockchain-based systems continue to grapple with, and recent developments in the industry have only underscored its importance.
To improve transparency and governance in the Klaytn ecosystem, the project is improving its governance portal Klaytn Square and introducing new measures to increase community participation and transparency.
One of the key steps to achieve this goal is increasing governance transparency by disclosing the Governance Council (GC) on-chain voting agendas and statuses in real time via Klaytn Square, which launched in November 2022 and is scheduled to officially go live in the first half of 2023.
Additionally, the Klaytn Foundation plans to accelerate the transition to a permissionless blockchain, a decision approved by the GC in December 2022. This move is expected to further facilitate the decentralization process and enable the opening of the block verification process by 2024.
Collectivity
It goes without saying that the community is the beating heart of any blockchain ecosystem. Encouraging active community participation is crucial, and it is equally important for developers to enable seamless onboarding and provide tools and SDKs for easy building.
Klaytn plans to build more native ecosystem services such as: B. a trusted bridge and an oracle to make it easier for builders, but also to increase the demand for KLAY (by charging oracle fees in KLAY). Klaytn also wants to set up “Proof of Hodl” communication touchpoints on Klaytn Square. This is intended to provide opportunities for participants who contribute directly to participate in governance, e.g. B. the ability to vote GC members in and out and much more.
Diploma
Although still many miles away, the fact that blockchain technology has had such an impact on the modern tech world shows that the demand and need are real.
However, a lot of work is required to get us there. And while recent events may have left a dent between users and the broader industry, the true values of blockchain have never been more appreciated.
Klaytn strives to achieve the mass adoption trilemma by being consistent in upholding these very values.