Klaytn is a public blockchain platform launched by Ground X. Released in 2019, Klaytn is the dominant blockchain in Korea, having secured the Central Bank Digital Currency (CBDC) project with the Bank of Korea. Klaytn is also integrated with KakaoTalk via its crypto wallet Klip. ^[7][8]

Overview

Klaytn is a Byzantine fault tolerance consensus-based public blockchain developed by internet giant Kakao Corporation. Klaytn launched its mainnet, Cypress, on Jun 27, 2019. It is also the blockchain platform for the Central Bank Digital Currency (CBDC) project with the Bank of Korea, by way of private blockchain deployment.^[9]

Tokenomics

KLAY is the native currency of Klaytn and can be used for transaction fee payment, KLAY staking, as a medium for exchange, etc. Initially, 10 billion tokens were issued and additional KLAY are issued through subsequent new block creations. ^[10]

Funding Structure

Klaytn’s funding structure runs continuously with Klaytn network’s block generation. With every new block, newly issued KLAY and the sum of transaction fees used in the block (collectively called “block reward”) are aggregated and distributed to the following three destination accounts in accordance to the predetermined ratio:

• Klaytn Governance Council Reward: 34%

• Klaytn Growth Fund (KGF): 54%

• Klaytn Improvement Reserve (KIR): 12%

Klaytn Governance Council

Klaytn Governance Council is the collective group of Core Cell Operators (CCOs). Council members are responsible for maintaining Core Cells (CCs), which makes the Council an essential body in the Klaytn ecosystem responsible for providing the underlying infrastructure. To secure its reliability, the early members of the Governance Council were be limited to trusted organizations. To become a Council member, the candidate must undergo a qualification review by the Klaytn Governance Process and must stake at least 5 million KLAY. The Klaytn Governance Council Reward is a structure for incentivizing Council members to continue to provide a stable foundation for the Klaytn ecosystem.

Klaytn Growth Fund

The Klaytn Growth Fund (KGF) provides grants and invests in various organizations and individuals that contribute to the Klaytn economy. During its initial phase, digital asset applications and infrastructures will be some of its focus areas. To operate the KGF, various programs for promoting the adoption of Klaytn in the digital asset industry may be included. It will be constantly financed through a certain percentage of the block rewards.

Klaytn Improvement Reserve

The Klaytn Improvement Reserve (KIR) is created for investment and research on the Klaytn ecosystem. KIR proposals can be created by any participant in Klaytn’s ecosystem. Once a spending proposal has passed, KLAY will be distributed periodically, from a predetermined total amount, based on the project’s level of progress. This process may change based on the project size but is planned to be processed monthly.^[11][3]