Cryptocurrency adoption has undoubtedly been on the rise throughout the past couple of years in terms of both retail and institutional usage.
However, now, following a year during which the market declined considerably, and many people left, it appears that a lot of it was mainly driven by speculation. In that sense, the industry still has a long way to go.
What’s Stopping Crypto From Achieving Mass Adoption?
There’s been steady growth in the development of decentralized applications (dApps), but with the exception of a few, not a lot have seen mass adoption in the conventional sense.
One of the challenges for this is the long-term sustainability of ecosystems in the industry. A lot of the projects have tokenomics that struggle to create a virtuous cycle of supply and demand or even intrinsic value.
Additionally, the recent high-profile collapses of opaque and centralized entities in the cryptosphere have not only set back mass adoption by years but also highlighted the urgent need for crypto to return to its roots of trustlessness and decentralization.
The Mass Adoption Trifecta
With these problems in mind, the team at Klaytn – a leading open-source blockchain from South Korea – has been able to identify what they refer to as the mass adoption trifecta: sustainability, verifiability, and collectiveness. That said, the team is aiming to achieve the so-called Mass Adoption Trifecta.
Without abandoning their long-term vision, the team has been able to craft an effective roadmap for 2023 which comprises three goals and 18 initiatives that would accelerate their goal of achieving the trifecta.
These goals include:
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, Klaytn Foundation has introduced a proposal to optimize its tokenomics in a bid to establish its native KLAY token as a deflationary asset while fostering a secure, sustainable, and verifiable token economy.
The proposal is for initially burning 5.28 billion KLAY out of the total 7.48 billion KLAY that is not in circulation. The remaining 2 billion will be burned after 3 years if there is no use case found through collaboration with the protocol’s Governance Council (GC).
In addition, the proposal seeks the merger of the Klaytn Growth Fund and the Klaytn Improvement Reserve and its restructuring into a Klaytn Community Fund and Klaytn Foundation Fund. The GC and the community would be taking the lead in terms of decision-making and usage of the funds.
Ultimately, the proposal’s goal is to establish KLAY as a secure, sustainable, and deflationary asset while fostering trust and confidence in the Klaytn ecosystem.
Achieving trustlessness is an essential challenge that many blockchain-based systems continue to grapple with, and recent developments in the industry have only emphasized its significance.
To improve transparency and governance in the Klaytn ecosystem, the project is enhancing its governance portal, Klaytn Square, and introducing new measures to increase community involvement and transparency.
One of the primary steps in achieving this goal is to increase governance transparency by disclosing Governance Council (GC) on-chain voting agendas and statuses in real-time via Klaytn Square, which was launched in November 2022 and is set to begin operating officially in the first half of 2023.
Furthermore, the Klaytn Foundation plans to accelerate the transition to a permissionless blockchain, a decision that the GC approved in December 2022. This move is expected to further facilitate the decentralization process and enable the opening of the block verification process by 2024.
It goes without saying that the community is the beating heart of any blockchain ecosystem. Fostering active community participation is critical, and for the case of developers, enabling seamless onboarding and providing tools and SDKs for ease of building is just as important.
Klaytn is planning to build more native ecosystem services, such as a trustless bridge and oracle, to make it easier for builders but also increase the demand for KLAY (through calculating oracle fees in KLAY). Klaytn also looks to establish “Proof of Hodl” communication touchpoints on Klaytn Square. This is intended to provide participants who contribute directly with opportunities to take part in governance, such as being able to vote in and out GC members and more.
While still many miles away, the fact that blockchain technology has made such an impact on the modern tech world shows that the demand and necessity are real.
Yet, much work is needed to get us there. And while the events of the recent past might have put a dent between users and the broader industry, the true values of blockchain have never been treasured more.
Klaytn aspires to achieve the mass adoption trilemma by being consistent in upholding these exact values.