Tutorials, for User

How to check the status of the TreasuryRebalance (KIP-103)

#Blockchain #Governance Proposal #Treasury

With our upcoming Cypress KIP103 hardfork happening on 17 April, we’ve prepared a simple guide on how to check on the status of treasury rebalancing (KIP-103) which was proposed as part of KGP-6.

The KGP-6 proposal which was passed included:

  • An initial burn of 5.281B KLAY,
  • An allocation of 0.197B KLAY to GroundX, and
  • A rebalancing of the remaining Token Generation Reserve, KGF and KIR funds into 3 new funds – Klaytn Community Fund (KCF), Klaytn Foundation Fund (KFF) and Klaytn Value Creation Reserve (KVC).

The treasury rebalancing includes smart contract functions that are tamper-proof and verifiable by anyone at any time. The following steps below will show you how to query data on a Klaytn blockchain explorer. For the purpose of this tutorial, we will be sharing screenshots from Klaytnscope.

1. Viewing the contract

To begin, visit Klaytnscope or Klaytnfinder and click on Read Contract.

The contract address for KIP-103 is: 0xD5ad6D61Dd87EdabE2332607C328f5cc96aeCB95

On the blockchain explorer site, you will be able to see a list of data query functions like this:

2. Viewing information on old treasury fund wallets

To query the number of old treasury wallets, click on getRetiredCount.

The number “4” will show and this is the number of old treasury fund wallets that will be retired once the treasury rebalance occurs with the KIP103 hardfork.

To query the addresses for each of the old treasury wallets, click on Retirees and input a number. Since there are 4 wallets identified, you may input number 0-3.

Here is the list of the old treasury fund wallets that each number represents:

0 – Klaytn Reserve 1

  • Address: 0xAfD197d383453b08B7c1509BdB4B6afEe9F66578

1 – Klaytn Reserve 2

  • Address: 0x5678300aBc1F599D865C3525df851b3902C88266

2 – KGF

  • Address: 0x278e6332D69Eed782784d21802e3504a64A16456

3 – KIR

  • Address: 0x3d803A7375a8EE5996f52A8d6725637a89f5Bbf8

3. Viewing the information on the new treasury fund wallets and their balance 

To query the number of old treasury wallets, click on getNewbiesCount.

The number “3” will show and this is the number of new treasury fund wallets that will be assigned once the treasury rebalancing occurs with the KIP103 hardfork.

To query the addresses for each of the new treasury wallets and their balance, click on Newbies and input a number. Since there are 3 wallets identified, you may input number 0-2.

Here is the list of the new treasury fund wallets that each number represents:

0 – Klaytn Value Creation Fund (KVC)

  • Address: 0x4f04251064274252D27D4af55BC85b68B3adD992
  • Allocated Amount: 2,000,000,000 KLAY 

1 – Klaytn Foundation Fund (KFF)

  • Address: 0x85D82D811743b4B8F3c48F3e48A1664d1FfC2C10
  • Allocated Amount: 180,000,000 KLAY 

2 – Klaytn Community Fund (KCF)

  • Address: 0xdd4C8d805fC110369D3B148a6692F283ffBDCcd3
  • Allocated Amount: 270,000,000 KLAY 

4. Checking the status of rebalancing

To check on the current status of the treasury rebalancing, click on status.

There are 4 stages in rebalancing:

  • 0 – Initialized: The initial state of the contract.
  • 1 – Registered: Retirees and Newbies are registered in the blockchain. 
  • 2 – Approved: All retirees have been approved.
  • 3 – Finalized: The rebalance has been executed and finalized.

The status shows “2” which means that the retirees have been approved and that the rebalance will be executed once it reaches the reblanceBlockNumber.

5. Finding the rebalanceBlockNumber

rebalanceBlockNumber is the block when the rebalancing of the treasury occurs. You may query for the block number when the treasury rebalancing is executed and finalized. To do so, click on rebalanceBlockNumber.

The block where the treasury rebalancing will be executed is BlockNumber 119750400.

6. Calculating the expected burn amount

You can calculate the expected burn amount using this formula:

Burnt amount = sumOfRetiredBalance – (getTreasuryAmount + newbies’ balance).

You can get the total balance of the retired wallets by clicking on sumOfRetiredBalance and the total amount to be held by the new treasury wallets by clicking on getTreasuryAmount.

At the time of writing (31 March 2023), the expected burnt amount is ~5,291 Million KLAY. the amount is slightly larger than the burn amount indicated in KGP-6 due to the KGF/KIR block rewards distributed since then.

Do note that the sumOfRetiredBalance will keep increasing until the KIP103 hardfork occurs as block rewards are still being generated. However, rest assured that the additional block rewards generated will also be burnt during the treasury rebalancing. 

7. Verifying the TreasuryRebalance

Once the KIP103 hardfork occurs and the smart contract is executed, you may verify it on the blockchain explorer by clicking on memo. Klaytn node prints a log describing the result of treasury rebalancing at the execution time and the log will be updated on the KIP-103 contract as memo. Here is an example of what it will look like:

Under “retired”, you will see the list of addresses that have been retired (old treasury fund wallets) while under “newbie”, you will see the list of addresses that have been created (new treasury fund wallets). You can also verify the amount of KLAY that has been burnt under “burnt”.

If you have any other questions, feel free to join our Discord channel or Telegram group. 

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