[Upbit] Notice on IOST Investment Warning

Hello. This is Upbit, the most trusted global standard digital asset exchange.

IOST has been flagged for investment warning by the Digital Asset eXchange Alliance (DAXA). DAXA can jointly take actions such as issuing investment warnings, designating items for trading caution, and terminating trading support to protect investors.

Please find the detailed information below, and members holding this digital asset are advised to check the following details.

IOST(IOST, IOST)

• According to the foundation, IOST is scheduled for a network transition to a Layer 2 blockchain and a change in tokenomics in February. Members are advised to be cautious of increased price volatility of IOST.

• The existing IOST Layer 1 blockchain will continue to operate and is expected to be connected to the newly launched Layer 2 blockchain via a bridge.

[Notice on Network Transition and Tokenomics Change]

• On October 21, 2024, the IOST team announced a network transition and tokenomics change due to the launch of a new mainnet to build blockchain infrastructure combining PayFi and DePIN.

• Reference: [Initial Notice on IOST Network Transition](https://medium.com/iost/iost-monthly-report-september-2024-7ba73d872b83)

• Reference: [Summary of 1st AMA on IOST Network Transition](https://medium.com/iost/recap-iost-ama-with-co-ceo-blake-november-21-2024-a3f65d86547e)

• On November 24, 2024, the result of the first governance vote through the self-governance platform was processed as passed.

• Reference: [1st Governance Vote on IOST Network Transition](https://www.iostscan.com/govern/proposal/105)

• The IOST team decided to issue additional notices on the network transition and to conduct a second governance vote.

• Reference: [Structure Explanation on IOST Network Transition](https://medium.com/iost/iost-3-0-transforming-into-a-specialized-bnbchain-layer-2-for-next-gen-web3-payments-5aef7a22896c)

• Reference: [Tokenomics Change on IOST Network Transition](https://medium.com/iost/understanding-iosts-new-tokenomics-e3486e64d7d2)

• Reference: [Summary of 2nd AMA on IOST Network Transition](https://medium.com/iost/ama-recap-shaping-the-future-of-web3-iosts-rebrand-vision-innovation-and-community-driven-987f22d239a4)

• The second governance vote through the self-governance platform began on January 5, 2025, and the result on January 12, 2025, was processed as passed.

• Reference: [2nd Governance Vote on IOST Network Transition](https://www.iostscan.com/govern/proposal/rebranding)

• Based on the results of the second governance vote, the network transition and the accompanying tokenomics change passed governance, and a total of 21,320,000,000 IOST is expected to be additionally issued and used as follows with the launch of the Layer 2 blockchain.

| Category | Details |

|-------------------------------------------------|----------------------------------------------------------------------------------------------------------|

| PayPIN Node Reward (60%) | - Expected to be used to reward the validator network. - Lockup is expected to be released over 60 months. |

| Airdrops and Stakedrops (20%) | - Expected to be used for airdrops to existing IOST holders and ecosystem contributors, and to provide incentives for ecosystem development. - Lockup is expected to be released over 48 months. |

| PayFi Community Incentive (8%) | - Expected to be used for supporting PayFi application development, RWA, DePIN, funding for payment projects, etc. - Lockup is expected to be released over 36 months. |

| Community Developer Grant (5%) | - Expected to be used for supporting infrastructure development, security audits, etc. - Lockup is expected to be released over 36 months. |

| Nexus DAO (4%) | - Expected to be used as operating funds for Nexus DAO (governance body) to provide incentives for community governance, emergency funding, etc. - Lockup is expected to be released over 48 months. |

| Team (3%) | - Expected to be used for personnel rewards, etc. - Lockup is expected to be released over 36 months after a 12-month lockup. |

• Upbit plans to communicate closely with the IOST team to ensure the safe protection of your assets, and if there are any additional or changed matters, we will provide further guidance through this notice. DAXA member companies can take actions such as issuing investment warnings, designating items for trading caution, and terminating trading support to protect investors. DAXA member companies are reviewing the digital assets they support for trading and monitoring market conditions, and will continue to implement investor protection measures through prompt information provision and response in crisis situations requiring investor caution. Upbit will always do its best to ensure your safe trading. Thank you. ※ Virtual assets are high-risk products that can result in the loss of all or part of your investment.

*This information is automatically generated.