We had the pleasure of hosting Sangmin Seo (Sam), Representative Director of Klaytn Foundation, for an informative AMA session on Klaytn’s 3Q 2022 Ecosystem Updates and the future direction of ecosystem support while taking live questions from our community. Read on for our recap.
Note: Some of the text has been edited for grammar and clarity.
Date & Time: Nov 3rd at 6 pm SGT / 7 pm KST
Platform: Twitter Spaces
Speaker: Sangmin Seo (Sam), Representative Director, Klaytn Foundation
Host: John Cho, Head of Growth, Klaytn Foundation
Part 1. Key Milestones and Direction of Klaytn Ecosystem
1–1) Current State of Klaytn 2.0 Key Activities
1–2) Summary of 2022 3Q Updates
Part 2. Q&A
2–1) Klaytn Ecosystem Projects
2–2) Kakao Leverage
2–3) Applications of KLAY
2–4) Ecosystem Support Activities
2–5) Klaytn Mainnet TVL
2–6) Klaytn Foundation
2–7) Investments Terms
Part 3. Appendix
3–1) Concepts of Grants vs. Investments
3–2) Private Contribution by Krust Universe CEO
3–3) Toward a Permissionless Klaytn Network Structure
Part 1. Key Milestones and Direction of Klaytn Ecosystem
John: We have Sangmin Seo (Sam), the Representative Director of the Klaytn Foundation, for today’s AMA session. For those who don’t know you, please introduce yourself.
Sam: Hello, I am Sam from Klaytn. As Klaytn Foundation’s Representative Director, I oversee the Foundation’s operations. Concurrently, I serve as the Chief Klaytn Officer of Krust Universe, leading mainnet development and network operations. I joined Klaytn at its early stage in June 2018 and started engaging in platform development at Ground X, so I have been with Klaytn for about 4.5 years. Starting from a technical background, I have also worked on various non-technical areas, building with colleagues and ecosystem partners.
At the beginning of my career, I spent most of my time diving into computer engineering. I was interested in parallel programming and high-performance computing, developing and building something fast. After building a supercomputer and researching supercomputer programming, I worked for a research center as a researcher. I then had an excellent opportunity to join Ground X and work for Klaytn.
John: You were in a hardcore domain and computer science field! What brought you to the Web3 world?
Sam: During the early phases of Bitcoin, around 2011, a colleague did Bitcoin mining with a supercomputer we were researching. That inspired me to learn about crypto. I was further drawn to Web3 around 2017, deeply getting into blockchain, and I decided to make it my job.
John: Thank you for the introduction, Sam. Then, we would like to move on to the next topic.
1–1) Current State of Klaytn 2.0 Key Activities: “The Metaverse Blockchain for All.”
John: First, could you briefly update us on the Klaytn team’s key initiatives, particularly in 3Q for Klaytn 2.0?
Sam: While working on Klaytn 2.0, the Klaytn team has rigorously thought about how to easily onboard DApps to Klaytn, which area Klaytn should focus on to secure competitiveness against other chains, and which direction Klaytn should take to become decentralized.
In terms of DApps onboarding, our goal was to achieve Ethereum equivalence as Ethereum is most widely used by DApp developers. This makes it possible for developers building on Klaytn to use the same dev environment/tools as Ethereum, allowing them to enjoy similar DApp development experiences. Likewise, we believe providing a developer-friendly environment could expedite developer onboarding. In parallel, we promoted the technical competitiveness of Klaytn at conferences, meetups, and hackathons as well as conducted numerous activities for developer onboarding and engagement.
The Klaytn team thinks the metaverse is a good fit for blockchain; hence we are focusing on this domain. Furthermore, as the Klaytn chain is suitable for the metaverse in terms of performance and user experience, we are aiming to become “The Metaverse Blockchain for All”. In collaboration with numerous metaverse projects and multiple gaming projects, we have conducted a wide range of business activities to help them develop games on Klaytn or onboard existing games to Klaytn. On the technical side, we have been working on a metaverse package, open-sourcing multiple elements of the blockchain ecosystem, and building a development environment to help game studios implement gaming ecosystems fast on Klaytn.
Lastly, for decentralization, the Governance Council (GC) has been evolving toward a decentralized structure by diversifying and increasing its members. In addition to a broader GC membership, we aim to structurally separate validators and the GC to become a more decentralized network and encourage participation from the two groups. Particularly in the short term, we seek to build a permissionless validator structure, allowing those qualified to become a validator of the Klaytn network.
To recap, the Klaytn team’s efforts for Klaytn 2.0 centered around closing gaps in our development environment and ecosystem against other chains as quickly as possible. For Klaytn 1.0, we took a gradual approach to growth, while Klaytn 2.0 involves a rapid growth approach that addresses shortcomings quickly.
John: Why is it necessary to expand the ecosystem, and what’s the direction?
Sam: With regards to the Klaytn ecosystem, before providing active ecosystem support, our ecosystem had challenges onboarding DApp projects due to insufficient infrastructure. Even earlier this year, there were very few infrastructure projects available for blockchain developers, which resulted in significant dependence on particular projects. The lack of new feature development, performance enhancement, and failure responses of existing infrastructure resulted in frequent complaints from developers. Insufficient ecosystem development infrastructure limited the organic growth of new DApp projects, posing a barrier to the rapid growth of key DApp domains such as gaming, NFT, and DeFi.
In response, the Klaytn team strove to promptly address these problems through ecosystem support activities, and the direction was to grow the size and quality of our infrastructure. In other words, we sought to reinforce the underlying ecosystem infrastructure such as block explorers, wallets, bridges, and oracles, as well as enhance compatibility with Ethereum’s development tools, thereby improving our development infrastructure. This year’s myriad of initiatives have been aligned in this direction, which was also shared earlier with a Medium post on Klaytn ecosystem projects [KR] in July.
John: Right. As you said, various activities were carried out to expand the infrastructure. This week, the Klaytn team published a series of 3Q updates on its official Medium. Could you briefly summarize them?
1–2) Summary of 2022 3Q Updates
Sam: Ok. Let me share the key 3Q updates for Klaytn. As I cannot go over every detail in the interest of time, you can check out Klaytn’s Medium posts or Twitter feeds for further details achieved by the Klaytn team and our ecosystem participants.
First, for core development, we released the Magma hardfork v1.9.0: applying a dynamic gas fee mechanism to the network. Under the dynamic gas fee policy, gas fees fluctuate according to network congestion: the busier the network, the higher the gas fees.
As for the Governance Council (GC), NFT Bank, Jump Crypto, Thrust, 1inch Network, KrossLab, and Sygnum Bank joined the GC in 3Q, with SwapScanner and QuantStamp recently joining as well. Conversely, some left the GC – mostly because they cannot afford to contribute to the GC or further drive ecosystem growth rather than having specific issues with Klaytn. Of course, those who leave the GC are welcome to rejoin if they are willing to participate and further contribute to advancing Klaytn’s ecosystem.
John: Indeed. Speaking of the GC, it seems to have advanced considerably since 2019. Given a rapidly changing industrial landscape, the GC seems well structured toward our ‘Crypto-first’ strategy. Regarding this, the community seems keen to know particularly about the direction of KIR/KGF grant funding and investments. However, as they have different characteristics, further explanation is necessary. On a side note, I bet the audience would have many questions, and anything that sounds unclear due to technical issues and needs further explanation will be covered with an AMA recap post on Medium.
Sam: First of all, for those who might be confused about KIR and KGF, let me talk about the standard to distinguish the two. The Klaytn Improvement Reserve (KIR) funds the development of public infrastructure and services that contribute to Klaytn’s blockchain ecosystem, with each proposal for the fund being reviewed and approved by the GC through a vote. In contrast, the Klaytn Growth Fund (KGF) is designed to fund projects required for the growth of the Klaytn ecosystem in diverse aspects, including development and marketing, even if they are not purely or largely public projects. Currently, the Klaytn team assesses projects given the direction of Klaytn’s growth and makes funding decisions. You can learn more about the KGF approval process from the Medium post, 3Q22 KGF/KIR Funds Update.
One of the key KIR projects in 3Q is the Blockchain Research Center (BRC) Program, a consortium of the Korea Advanced Institute of Science and Technology (KAIST), the National University of Singapore (NUS), and other professors from prestigious universities across the globe. For this program, 7 global research teams applied, and the KAIST/NUS team was finally chosen after 3 rounds of evaluations. They plan to conduct substantial research on blockchain technology and non-technical areas for the next 4 years. Also, the BRC aims for open research so that anyone can suggest a new research topic aside from universities and research professors previously involved in initial proposals, and selected research projects will be carried out together with the BRC. However, due to numerous administrative tasks, the BRC is expected to be officially launched next year.
For its part, KGF has been used largely as a source of grants and investments. Grants are designed to support developer relation activities, marketing, and ecosystem expansion, while investments mainly refer to indirect investment funds to galvanize the ecosystem. The Klaytn team offered a total of 54 grants amounting to 13,713,799 KLAY in 3Q 2022 to help projects in the Klaytn ecosystem grow and promote Klaytn and projects to developers and users. And through KGF, 5 investments were made, totaling 28,955,140 KLAY, equivalent to $7.2 million.
John: Expanding and reinforcing the Klaytn ecosystem means having more developers and builders build quality infrastructure and services on Klaytn rather than other chains. Builders are considered core to the blockchain. Could you tell us about builder onboarding activities in 3Q?
Sam: Of course. Regarding DevRel activities, our no. 1 goal is to have more DApps and infrastructure on Klaytn. In that process, we focus on broadening the developer network and acquiring end users. Marketing activities by the Klaytn team encompass all of our activities to raise awareness of Klaytn and bring in builders and end users. In addition, the Klaytn Foundation selectively attends offline conferences and virtual events to introduce Klaytn. For instance, we attended Korea Blockchain Week and Token2049 in August and September, respectively.
To reinforce the ecosystem, Klaytn has been supporting numerous projects in gaming, DeFi, NFT, and infrastructure domains. For the gaming sector, grants were paid to introduce gaming projects on Klaytn to more users and onboard new projects to Klaytn. For the DeFi sector, grants were paid mainly for the initial bootstrapping of projects. Also, for leading NFT projects in the Klaytn ecosystem, grants were paid to support co-marketing activities to show the community their potential for continuous business expansion in Klaytn. Lastly, grants also contributed to improving infrastructure components, such as bridges, mobile wallets, data management gateway, and security systems.
As for investments, KGF was used to set up an Eco Fund in 3Q. For example, the Klaytn Eco Fund was established in 2Q 2022 by using KGF as a source of indirect investments to activate the Klaytn ecosystem: VCs with regional networks and expertise make strategic investments in the ecosystem. In particular, the gains from this fund will be used to burn KLAY.
John: Thanks for the explanation. Lastly, the Klaytn team announced the plan to strengthen communications with the community in May. Frankly speaking, this has yet to fully live up to expectations. So it would be great if you could share your plan or aspiration to further communicate and build trust with the community.
Sam: We couldn’t actively communicate with the community in 3Q, and such passive communication was likely to further spread wrong information or FUD recently. There could be various reasons we couldn’t actively communicate, but talking about it would sound like an excuse. So we deeply apologize for not being able to communicate properly in the past and will work harder to improve going forward.
The recent updates on our Medium channel, such as our Block Reward Adjustment Proposal to GC, Klaytn Foundation’s KLAY Buyback, Kakao Leverage TF, and Taking Klaytn’s NFT Ecosystem to the Masses were part of our continued efforts that have been long discussed and worked on, but which was not properly communicated in time. So from now on, we will communicate and share updates more often with the community.
John: That made me think that my communications team should work harder as well. I think this would be the last question in the first section for Sam. Please tell us about the Klaytn team’s plan for the remainder of 4Q.
Sam: Given the challenging market condition in 4Q, we plan to look back at what we have done so far and examine ongoing projects to ponder the future direction and growth of Klaytn rather than supporting or executing new projects. In particular, for the rest of 4Q, we have decided to offer almost no new grants or investments. Rather, we will concentrate more on increasing demand for KLAY and strengthening Klaytn’s tokenomics to create a virtuous cycle of synergy, further advancing Klaytn and raising the value of KLAY.
Thank you for listening to my long talk, and now I would like to take questions from the community.
Part 2. Q&A
2–1) Klaytn Ecosystem Projects
Q. I am hoping that OG projects that led the Klaytn NFT boom at the beginning could be largely funded this time and put under the spotlight. However, many remain for over a year, and numerous holders have expectations. Raising KLAY value requires massive transactions, and I think we should not let traditional and distinctive NFT projects leave Klaytn anymore. What are the support measures to boost the value of the Klaytn ecosystem?
A. The Klaytn team has endeavored to support as many projects as possible, not all. There are limitations in providing such support to every team in the ecosystem. Despite all that, our support has been concentrated on co-marketing and AMAs. As we have decided to take belt-tightening measures, such as pausing new spending in 4Q, we need to think more carefully.
The Klaytn team well recognizes the positive impact of Klaytn-based OG NFT projects. For them, we provide support beyond financial assistance, such as integration efforts with highly accessible and renowned data dashboards in the crypto scene. Meanwhile, Ground X is collaborating with multiple NFT projects and establishing an NFT alliance, GRID.
2–2) Kakao Leverage
Q. One of the reasons many holders get to know and hold KLAY is due to its background, “Kakao.” Then, which could be linked to Web2 services and combined with Kakao services? Many people are looking forward to it, but nothing seems to have materialized yet.
A. In fact, we are seeking collaboration with Kakao in many aspects, which may need to be more visible, as you said. For instance, KakaoPay’s issuance of private certificates is recorded through Klaytn, and there was a now-defunct Kakao reward point program, Kakao CON. Also, the only crypto wallet integrated into KakaoTalk, Klip is another leading example.
Indeed, I cannot give you an exact answer to the question, “Where can we see a touchpoint in our daily lives?” but we are well aware of this point and are exploring ways to use NFTs in KakaoTalk. And this overall direction has been shared along with the recent update on establishing Kakao Leverage TF. But, of course, we have yet to achieve momentum as fast as expected by holders. But we will try to do better by focusing on what I have said.
Also, recently Xangle Research mentioned the surge of Klaytn transaction fees by KakaoPay (KR), which was related to KakaoPay’s issuance of private certificates. Now, lots of transactions are being generated from Kakao.
2–3) Applications of KLAY
Q. Many people are keen to know about the plan to burn 5 billion KLAY. Could you share more about it?
A. In summary, we haven’t yet set the detailed burn schedule because we think finding other KLAY applications for the active Klaytn ecosystem or using the reserves for partners could be a good option. For this, we are in discussion with a wide range of big global/local partners, which can contribute to expanding the Klaytn ecosystem in the long run. But if we think burning uncirculated KLAY creates a much larger value than partner-generated demand for KLAY, we will burn the entire amount in question. Therefore, we seek your understanding that we cannot specify a particular timeline considering ongoing discussions with partners.
Q. Have you assessed the most used applications of KLAY?
A. The Klaytn team views the DeFi, NFT, and gaming sectors as key application areas from which most projects originate. However, a DeFi or NFT is more like infrastructure, so we focus on upper-level applications such as onboarding gaming projects to Klaytn.
2–4) Ecosystem Support Activities
Q. It is known that there has been a continuous outflow from the Klaytn team’s fund, which sometimes becomes a source for FUD. Could you clarify this?
A. First, we announced the plan to pause all new expenditures until the end of 2022. And regarding the suspicion that there has been an outflow to exchanges aside from fund expenditure, it is transactions at the project level that transfer KLAY to exchanges, not the Klaytn Foundation.
Q. When will investments be resumed from 1Q next year?
A. We plan to do so but will keep market conditions in mind. And even though we committed to investments, if recipients fail to meet enhanced criteria at the point of resuming, we will take bold action, such as not paying for grants/investments or canceling them.
Q. There were some issues in projects which were given a shout-out or grant by the Klaytn team. Regarding this, what are the investment decision-making processes and/or criteria?
A. When we initially review and decide to support a project, we base our decisions on its potential to contribute to Klaytn’s ecosystem. However, in retrospect, the decisions seem to have had an issue. Therefore, we are having a retrospective to prevent the recurrence of such issues and set a strict process and decision-making criteria. Also, we are considering measures such as suspending or returning payments to projects that have failed to generate a good outcome.
Q. Speaking of some of the DeFi/NFT projects which were recognized or given investment by the Klaytn team but ended up with a failure, has the person in charge been held accountable, and is there a plan to recruit talent to identify good projects?
A. As mentioned earlier, we are reflecting deeply on the poor results of grant funding and investments. Please note that such decisions are not made solely by one person. Regarding accountability, we do retrospectives and reflections at the team level, including the person in charge, to complement the process and set the bar high. Going forward, the Klaytn team will conduct an exhaustive pre/post-analysis on KGF grantee projects or investment deals to reflect the lessons learned from previous grant funding into the approval criteria.
Q. Recently, KlayCity decided to migrate to another chain. The 3Q 22 KFG Funds Update on Medium indicated grant payments in KLAY to KlayCity on August 17. Wasn’t there any clause to keep them on the Klaytn chain at the time of contracting?
A. In fact, potential migration was not considered at the time of grant funding. Moving forward, we will take preventive measures such as returning or reclaiming payments in case of migration.
2–5) Klaytn Mainnet TVL
Q. Recently, Klaytn saw a sharp drop in TVL. Could you share the direction on how to increase TVL?
A. Above all, the drop in TVL results from combining the value of various tokens related to calculating the TVL of DeFi projects. The recent decrease in KLAY price was a significant factor as well. Therefore, to raise the TVL, there should be a large inflow of value-generating projects to Klaytn, and we are specifically focusing on onboarding blockchain games.
In addition, as a protocol-level effort to induce a higher TVL, we led an initiative with GC members through discussions to unstake their staking collateral to increase APR. As a result, staking APR increased by 3% across the Klaytn ecosystem. Please stay tuned for further updates.
Q. For a higher TVL, it seems necessary to find an additional touch point to have a plan tailored to Web3 by staying away from the existing DeFi approach. Have you ever considered this?
A. The Klaytn team is focusing on the GameFi sector to expand touch points, as you mentioned. We are looking at relevant protocols and various services integrated with DeFi components. Also, diverse web services with integrated DeFi components are on the table. As such, we have been continuously building money legos from the beginning of this year.
2–6) Klaytn Foundation
Q. Are you planning to seek a consensus from the market before using the KGF and reserves? Also, would it be possible to disclose the Foundation’s transactions in advance?
A. First, I am afraid to say that I cannot guarantee that prior disclosure is 100% possible due to internal administrative issues. Most payment or volume transfer takes place according to a contract. But we will have a thorough discussion to make it more transparent.
In terms of direction, we are advancing decision-making processes to make governance members decision-makers, but we will look from a market consensus perspective to allow the voices of our community to be heard.
Q. Seemingly, some projects in the Klaytn ecosystem are considering multi-chains or migrating to other chains. What do you think, and is there a countermeasure?
A. From the view of a project, expanding to multi-chains can be a valid option to enlarge the market/user base. Of course, it is very regrettable to see projects leaving Klaytn to other chains, but the team cannot force projects to make certain strategic decisions. Nevertheless, Klaytn, as a public Layer 1, always welcomes projects which come back when necessary after moving to another chain. In the meantime, Klaytn will be making great advancements. For instance, Klaytn is Korea’s only Layer 1, and our strength lies in having many onboarded Korean users. As such, we will complement and reinforce efforts to become a chain that retains projects or keeps them coming back.
Despite some projects leaving, we have new projects onboarding to Klaytn. Recently, CryptoBank (CBANK) carried out mainnet migration to Klaytn. We hope the market and our community consider both perspectives. Global projects occasionally undergo chain migration or expansion, but in the Korean market, the media sheds light on chain migration in particular, which makes it more prevalent.
Q. What do you think is the proper KLAY price to expand the Klaytn ecosystem? Is there any phased roadmap to reach the target price, if any?
A. It is difficult to make a definite statement on the proper KLAY price now and in the future. However, we are looking for numerous ways to create a huge demand for KLAY to boost its value. Burning KLAY and broadening applications could be a part of it. In the end, we seek to create numerous touchpoints for actual services and expand the ecosystem, not using KLAY merely as a means of transaction.
Q. As it is difficult for the Klaytn Foundation to comment on prices, there is an understanding that the value of KLAY is not considered important. What are the team’s internal thoughts on KLAY value?
A. This takes top priority. Numerous holders and builders are interested in this, and the Klaytn team recognizes this.
Q. The Klaytn Foundation is a non-profit organization and recently announced the completion of KLAY buyback. Could you share how the buyback was funded and the decision-making process the Foundation went through?
A. The Klaytn Foundation, as a non-profit organization, is solely dedicated to expanding the Klaytn ecosystem. As for the Foundation’s buyback, the Klaytn project was funded in the early phase of the Foundation. Such an investment fund was in our possession and then used for the buyback. All sources of capital are being used entirely to operate the Foundation and vitalize the ecosystem.
Q. There was a case where a KGF grantee caused collateral damage to users through hard rug pulls and hijacking. Aside from the ecosystem expansion, does the Klaytn Foundation have any damage relief plan or support plan in all good conscience for the victims?
A. Frankly speaking, it is difficult to offer financial support to victims. However, we will focus more on improving the ecosystem to prevent anything like this from happening again. For instance, we will make sure to implement measures such as security enhancement, transparent disclosure of information, better training to sift out scam projects, and other measures for market and ecosystem participants to make better-informed decisions.
For instance, a new GC joiner, Quantstamp, is a leader in web3 security and will conduct security audits on the Klaytn blockchain and multiple Klaytn-based applications.
2–7) Investment Terms
Q. Are pre-approved deals funded in fiat or KLAY?
A. Terms are set based on USD more commonly, and payments are made in KLAY equivalent to USD. We are doing this because of the price volatility according to the market conditions. We will reflect on holders’ feedback on this and explore further improvements.
Q. Providing a quantity of KLAY in dollar terms seems to imply that an investee can immediately cash out KLAY. Could you further explain this?
A. There is a vesting period set in the general contract terms for Klaytn’s funding, making it difficult for projects to cash out instantly. Furthermore, not all teams liquidate funds. Many projects hold KLAY for a long time, with confidence in the Klaytn ecosystem’s potential, or make diverse application attempts.
Q. There have been rumors from time to time that former Kakao or Krust employees or executives had set up Krust and divided up KLAY internally. Could you explain or clarify this?
A. The community seems to have a misunderstanding that Klaytn team members liquidated a large volume of KLAY in their possession. In fact, Klaytn team members are the most loyal holders. Thus, I can tell you that those rumors are a misconception and are untrue. Presumably, such FUD came from distortions about how a team that spun off from the Krust Incubation Program is funded.
Q. Speaking of the latest WEMIX situation, is the actual KLAY circulating amount the same as the circulation plan submitted to exchanges?
A. It is likely to be subject to change as the declared amount is based on forecasts at the point of listing. However, the minting and circulating amount are updated in real-time on the CoinMarketCap via API, and this can also be tracked in real-time via websites, including Xangle, which exactly corresponds to the chain data.
Part 3. Appendix
Aside from Q&As covered at the AMA session, we would like to recap our 3Q updates with a summary of the key information below. Starting with 3Q updates, the Klaytn team will continue to transparently share quarterly funding results. Also, we aim to contribute to the further growth of the Klaytn ecosystem through strategic investments.
3–1) Concepts of KGF Grants vs. Investments
For those needing clarification about the concepts of KGF-funded grants and investments, we would like to share the criteria for the two types of actions undertaken by the Klaytn team.
- The Klaytn team’s ecosystem support activities funded by the KGF (Klaytn Growth Fund) consist of grants awarding and investments. Investment activities are divided into direct investments and indirect investments using the Klaytn Eco Fund.
- A grant agreement is similar to a product or service agreement. The agreement includes project deliverables (milestones) agreed by the contract, and the agreed quantity of KLAY is not paid until a project completes each milestone and responsibility during the committed period.
- As for investments, the outcome of an investment project is split and shared with the Foundation. So, investments are focused on project teams with large potential upsides, even if they are less geared toward public purposes. Gains from investments are returned to the Klaytn Foundation and used for reinvestment in the Klaytn ecosystem or KLAY buybacks. More specifically, gains from direct investments will be used for the Klaytn ecosystem, and gains from indirect investments via the Eco Fund will be used to burn KLAY.
What is the KGF (Klaytn Growth Fund)?
The Klaytn Growth Fund (KGF) is a fund designed to facilitate the growth of the Klaytn ecosystem. The KGF offers grants or invests in the growth of various partners contributing to the Klaytn ecosystem.
KGF Use Case 1 — Klaytn Eco Fund
The Klaytn Eco Fund was established for indirect investments to activate the Klaytn ecosystem by the Klaytn Foundation in 2Q 2022. VCs equipped with a regional network and expertise take responsibility as a GP and are making strategic investments for the ecosystem, aspiring for its expansion. In particular, the gains from this fund will be used to burn KLAY, which will bring about a deflationary effect on Klaytn’s tokenomics. The Klaytn Eco Fund consists of diverse sub-funds depending on the purpose. The first case is the Alphanonce Klaytn Growth Fund (AKGF). Alphanonce, with overall access to the global market, has been chosen as the first partner of this first fund set-up in early April 2022 and entrusted with investments. On behalf of the Klaytn Foundation, it invested in a total of 5 crypto projects for two quarters.
KGF Use Case 2 — Grant Program
The Klaytn Foundation is awarding grants focusing on blockchain gaming and entertainment sectors to secure KLAY applications and form a strong community. Furthermore, considering its technical aspects, the Foundation supports different teams for a wide array of projects, such as Klaytn-based infrastructure and bridges, as well as the implementation of development infrastructure.
3–2) Private Contribution by Krust Universe CEO
On October 27, 2022, Joshua, CEO of Krust Universe, addressed Klaytn’s community, mentioning that he is listening attentively to the concerns about the survival and expansion of the Klaytn ecosystem. He expressed his ambition to support growth towards a healthier Klaytn ecosystem and announced a plan to purchase KLAY each month out of his pocket, including using his annual salary. This decision was based on his personal intention and confidence in devoting himself to expanding the ecosystem as a Klaytn ecosystem participant. He also shared his wallet address to purchase KLAY.
The Klaytn team submitted a Permissionless Klaytn Network Structure proposal to the Governance Council for a vote on November 4th to allow anyone to become a validator. If approved, nodes that satisfy particular conditions can participate in the consensus process and get corresponding rewards., This can help increase the engagement of ecosystem participants and advance further progress toward decentralization. As the value of assets staked in the network grows, it will cost more to attack the chain, thereby strengthening network security. Likewise, the Klaytn team will continuously seek to improve Klaytn’s consensus algorithm to allow the participation of more validators without compromising network performance.
Many thanks to Sam for taking time out of his busy schedule for our AMA! To find out more about Klaytn and join our growing global community, please follow these links below: