PANews reported on January 13 that according to Cointelegraph, South Korean cryptocurrency exchange Upbit warned that in order to protect investors, the Korean Digital Asset Exchange Alliance (DAXA) has issued a cautious reminder on IOST tokens. The project plans to transform into a Layer2 blockchain, which will significantly reform its token economics and network structure. As part of the transformation, 21 billion new IOST tokens will be issued, and this process is usually accompanied by short-term fluctuations in token prices. Upbit's cautious statement on IOST follows DAXA's guidelines to notify users of major network or token economics changes that may affect asset stability.

Although IOST's transition is not a trading suspension or delisting announcement, DAXA has focused on this Layer2 transition because it may have a significant impact on traders. After the second governance vote passed on January 12, the IOST team plans to issue 21.32 billion new tokens to support validator rewards, user incentives, and future ecosystem development. By connecting the existing Layer1 network with the new Layer2 network, the IOST team aims to increase transaction processing capabilities, improve efficiency, and reduce transaction fees. The new tokens will be issued gradually in stages. Among them, 60% of the new tokens will be used for validator rewards, 20% for airdrop activities, 8% for community incentives, 5% for developer funding, 4% for governance activities through Nexus DAO, and the remaining 3% for team compensation and other expenses.