4Q22 KGF/KIR Activity Report

TL;DR

• This article highlights the Klaytn Growth Fund (KGF) and the Klaytn Improvement Reserve (KIR) grants and payments in 4Q22
• 18 payments (15 grants, 1 investment, 2 others) totaling 12,598,416 KLAY

In November 2022, the Klaytn team disclosed the specifics of 3Q22 KGF/KIR payments and provided a comprehensive explanation of the KGF grant/investment review and approval process. 

As part of the team’s ongoing commitment to share quarterly updates in a transparent manner, the following information pertains to the 4Q22 KGF/KIR payments that were completed before the announcement of a temporary halt in ecosystem support, with the exception of the four cases mentioned in a notice dated November 2nd.

1. KGF Grants

4Q22 Grant Payments by Sector

As previously stated, the grant payments for 4Q22 are for agreements made in October prior to the decision to pause grant payments. The Klaytn Foundation has provided 15 grants with a total of 3,497,836 KLAY, which represents a 74.4% decrease compared to the payments made in 3Q22.

Overview of 4Q22 KGF Project Grantees

With this 4Q22 update, the Klaytn team wishes to provide the community with important information regarding grant payment size, date, and background. For the total list of 3Q and 4Q22 payments, please head here. 

The following are the details of key project grant recipients by sector for 4Q 2022:

• P2EALL (Game)
  • 207,086 KLAY equivalent to $40,000 paid on October 5 
  • The grant was used to support the development of a Klaytn-specific page and a marketing campaign for P2EALL, one of the largest blockchain information platforms in Korea.

• Pangea Swap (DeFi)
  • 215,435 KLAY equivalent to $40,000 paid on October 12 
  • The grant was paid following 3Q 2022 as an incentive to increase the liquidity of a Wormhole asset pool on Pangea Swap. 

• Doge Sound Club (NFT)
  • 107,718 KLAY equivalent to $20,000 paid on October 12 
  • The grant was provided to support marketing campaigns of a Klaytn NFT project, DSC, including the BMCS project and AYIAS metaverse building.  

• ZetaChain (Infrastructure)
  • 323,152 KLAY equivalent to $60,000 paid on October 12 
  • This grant was offered to support the integration of Klaytn on ZetaChain, a decentralized blockchain and smart contract platform built for omnichain interoperability. It has been successfully deployed to a testnet. 

2. KGF Investment

4Q22 Direct Investments 

In 4Q22, there was one investment funded by KGF, amounting to 5,000,000 KLAY. The recipient is 1inch, a global DEX aggregator which offers optimal transaction routes to DeFi users. This strong relationship with Klaytn is expected to increase utility for users and generate mid- and long-term returns on investment.  Also, 1inch is one of the most competitive partners for Klaytn’s global expansion.

3. Other KGF Payments

Other 4Q22 KGF Payments

Lastly, the following are KGF payments that do not fall under the categories of grants or investments:

Vested GC Sales (A single payment amounting to 4,000,000 KLAY)

This is the vested KLAY amount that was finally paid in November as agreed under a swap contract with Alameda, which was once a Governance Council member but is now disqualified. As previously mentioned, the Klaytn Foundation received all USDT stablecoins upon execution of the block deal, regardless of KLAY vesting.

Gas Fee Support (A single payment amounting to 100,580 KLAY)

With the aim of removing barriers to broader web3 adoption, the Klaytn team designed its gas fee support program to enable game developers to focus on growing their ecosystems. This payment was provided to support MARBLEX, a gaming partner which generated the highest number of active transactions on Klaytn in 4Q22.   

4. KIR Payments

4Q22 KIR Grants by Sector 

The Klaytn Governance Council offered 4 KIR grants totaling 4,317,979 KLAY.

Overview of 4Q22 KIR Project Grantees  

The following are the key details of 4Q22 KIR project grantees by sector, with accompanying links detailing the specifics of each project proposal. 

• Development
  • Klaytn Bug Bounty Program (13,151 KLAY equivalent to KRW 3,500,000)
    • 9th KIR approval 
    • Reward payment for 2 reported bugs 

• Infrastructure
  • Fantrie Public EN (265,434 KLAY equivalent to $50,000)
    • 13th KIR approval 
    • Operation of a publicly available end-point node

• Audit Fund
  • Haechi Labs Audit Fund (4,039,394 KLAY equivalent to $750,000)
    • 17th KIR approval 
    • Fund setup with a key auditing company to help audit Klaytn ecosystem projects

[4Q22 Klaytn Ecosystem Update]

The 4Q22 Klaytn ecosystem update covers key initiatives the Klaytn team undertook in 4Q 2022.