OKT rate rises by 11,7% after plan to reduce issuance to 21 million tokens was published

In this way, the developers intend to strengthen the tokenomics and performance of the network

24.02.2023 - 12:00

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What’s new? The rate of OKC Token (OKT), the native token of the OKX Chain (OKC) blockchain from the OKX cryptocurrency exchange, has risen by 11,7% in 24 hours to $34,55. A possible reason for the growth was the publication of the developers’ plan to reduce the total supply of OKT to 21 million by 2028 by reducing the amount of reward for the mined block.

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Centralized Exchange (CEX) OKX was founded in 2013. It is headquartered in Seychelles. The platform offers 362 tokens and 662 trading pairs, fee-free conversion, as well as perpetual swaps, futures, and options. As of February 24, the daily trading volume is $1,48 billion.

Why is there a need to reduce issuance? The OKT token is used in the network for voting, staking, and transaction fees in decentralized applications (DApps). Reducing the overall OKT supply is aimed at creating a more sustainable tokenomics and maximizing performance by reducing fees, which will make it easier for developers to scale.

By March 18, 2023, the block height 18 123 000 will see a reduction in the reward per mined block from the current 0,5 to 0,125 OKT. The move will reduce the number of tokens to be issued, limit inflation and ensure long-term growth without disrupting performance and functionality on the network, the developers note.

Earlier in February, the OKX exchange token called OKB renewed its all-time high. This came after the exchange’s CEO Star Xu announced the launch of the OKBChain blockchain in Q1 2023. The new network will be independent of the already functioning OKX Chain and will allow for the construction of a decentralized OKB ecosystem.

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