OKB surges 160% after OKX burns 65M tokens, caps supply at 21M, and upgrades its X Layer blockchain network.
OKB experienced a significant increase in value after OKX announced a 65 million token burn, a fixed 21 million supply, and significant enhancements to its Polygon-powered X Layer network.
On Wednesday, OKB, the native token of the crypto exchange OKX, experienced a nearly 160% increase in value following the platform’s disclosure of a significant burn and an overhaul of its blockchain ecosystem and tokenomics.
The rally, which momentarily elevated OKB prices to $135 from a daily low of $45, occurred in response to OKX’s announcement that it would burn 65,256,712.097 OKB from historical repurchases and treasury reserves on a one-time basis. The entire OKB supply will be fixed at 21 million following the burn.
Additionally, OKX disclosed that it intends to enhance its X Layer public chain, which is based on the Ethereum Virtual Machine (zkEVM) and zero-knowledge, to “transform it into a premier public chain that is exclusively dedicated to DeFi, payments, and real-world asset (RWA) applications.”
OKX reported that its “PP upgrade,” finalized on August 5, included the most recent Polygon CDK technology, increased transaction throughput to 5,000 transactions per second, reduced gas fees to negligible levels, and enhanced Ethereum compatibility for developers.
OKX Broadens X Layer Ecosystem
The exchange intends to attract developers by offering liquidity incentives and establishing an ecosystem fund. OKX Pay will adopt X Layer as its default chain, and OKX Wallet, OKX Exchange, and OKX Pay will be integrated entirely.
OKTChain will be phased out as part of the transition. The trading of its native OKT token will cease on August 13, and there will be periodic conversions of OKT into OKB at an average closing price until January 1, 2026. OKTChain is a layer one that is compatible with EVM and IBC and is constructed on Cosmos.
The Ethereum L1 version of OKB will also be phased out, and holders will be requested to migrate to the X Layer. OKX will upgrade the OKB smart contract to eliminate minting and burning capabilities entirely after the fire.
OKX investigates an initial public offering in the United States
OKX is purportedly investigating the possibility of a public listing in the United States after its April relaunch.
It was reported in June that the exchange is contemplating an initial public offering (IPO) on a US exchange. However, OKX declined to provide any further information on the matter.
It is worth noting that OKX has encountered regulatory challenges in Asia. In late May, Thailand’s Securities and Exchange Commission stated that it would prohibit the exchange’s operations in the country, in addition to four other platforms, including Bybit and CoinEx.
The regulator exhorted Thai users to secure their assets before the shutdown date.
The Philippines Securities and Exchange Commission issued an advisory earlier this month regarding the operation of 10 major crypto exchanges, including OKX, Bybit, KuCoin, Kraken, and others, for failing to obtain the necessary authorization under the country’s new crypto regulations.