Klaytn GC Members will help to increase Klaytn’s staking APR

Select members of the Klaytn Governance Council (GC) have banded together to help facilitate the growth of the Klaytn Ecosystem by reducing their Consensus Node (CN) staking collateral to the minimum required amount. This, in turn, will increase the overall Klaytn ecosystem staking annual percentage rate (APR). The GC members participating in this effort are Kakao, Kakao Pay, Kakao Entertainment and Ground X. 

Currently, 3.2 KLAY in block proposal rewards are distributed among the Governance Council Core Cell Operators (CCOs) for every block, totaling approximately 100 million KLAY annually. The distribution ratio is calculated according to the amount of KLAY staked with the CCO’s node. The following formula is used to calculate the final staking APR:

Staking APR GC reward / Total Staking Amount

Under this new initiative, participating GC members will unstake the majority of their collateral from their CCO nodes, minus the minimum required amount (5 million KLAY). The reduction of the participating GC members’ block proposal rewards will benefit the overall Klaytn ecosystem, including protocols and end users, through higher staking rewards and APRs.

The GC members participating in this initiative – Kakao, Kakao Pay, Kakao Entertainment, and Ground X – will not liquidate their unstaked KLAY and it will instead be leveraged to further facilitate the growth of Klaytn’s ecosystem. Various initiative directions are being explored and a viable option will be shared with the community once the members have reached consensus.