KCF Grant Proposal for Drawshop Kingdom Reverse - Boosting on-chain activities in Klaytn Ecosystem

Klaytn Community Fund Grant Program Pilot
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1. Product Name

Drawshop Kingdom Reverse.

2. Product Description

Drawshop Kingdom Reverse is a DAO-based Metaverse with NFT, P2E game. In DKR World, you can create your own NFT draw-machines via Gacha Contract, enjoy Land Festivals along with other global users, or compete against other users through the strategic operation of your Land. Furthermore, you may create your own 2D dotted Art Galleries, which can be used to decorate your own Land!

DKR is currently being funded by Krust Universe, the global investment arm of Kakao. Our project is led by world-class game developers, game directors, and blockchain developers, from well-known companies such as Krafton and PATI games.

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Figure 1. History of DKR

Drawshop Kingdom Reverse (DKR) successfully delivered and maintained DKR Open Beta Test (OBT) until July 2023. Currently, DKR is one of the leading GameFi dApp in Klaytn Mainet preparing for her Official Release.

Moreover, we have already established partnerships with over 100 diverse projects and companies. In this year only, we have actively promoted DKR games and Klaytn in the Southeast Asian, South American, and Japanese markets by getting invited and selected for global events and exhibitions such as Korea Blockchain Week 2022 Jeju Stage Speaker, Klaytn Foundation Klayvie Vietnam 2023 Speaker, Tokyo Game Show 2023, Singapore SWITCH 2023, Thailand K-Expo 2023, and Korea Indie craft (Korea game show) 2023.

At the start of the project, all four of our NFT minting sales were sold out in a matter of minutes. Then, following the launch of the NFT-Fi service (first-of-a-kind in the industry) and listing on major global CEXs (Centralized Exchanges), we sequentially conducted alpha and open beta tests and outdoor advertisements in Southeast Asia, securing over 30,000 gamers.

With the upcoming successful launch of the official version, we are applying for KCF funds to achieve explosive user growth on the Klaytn network and an increase in on-chain transactions.

Furthermore, DKR received 423,575 Klay from the Klaytn Growth Fund (KGF) last year in July and demonstrated effective growth metrics.

https://drawshop.page.link/2022-kgf-report

For the details of the game features, please refer to our game Introduction Deck here :
https://drawshop.page.link/DKR_KCF_deck

3. Tokenomics

Joystick Token (Symbol: JOY) is the reward/governance token of Drawshop Kingdom Reverse(DKR). It is the main means of interacting in the game ecosystem.

During the gameplay, users can earn JOY and use it to trade and purchase various items/NFT in the marketplace and participate in the governance by proposing and voting on improvement proposals, UCC polls, and various world events.

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<Source: Drawshop Kingdom Reverse White Paper, An Overview of JOY Tokenomics>

Value Accrual

JOY is designed to capture a portion of Drawshop’s revenue, allowing its value to scale by the game’s growth. DKR distributes a portion of the game revenue to JOY stakers pro-rata to their stake, benefitting stakers as the game grows — stakers of JOY are incentivized to propose, discuss, and vote for proposals that further improve the game.

Utilities

The JOY token is used during the gameplay

  • NFT Minting fee: Fee required to mint machines and dolls into an NFT
  • Machines & Dolls upgrade fee: Fee required to upgrade machines and dolls to upper level
  • Create Avatar NFT fee: Fee required to create a new avatar from two original avatars
  • Festival participation fee: Fee required to participate in a Festival
  • NFT Gacha Contract fee: Fee required to utilize Gacha contracts

In addition to the above, JOY holders can participate in the game’s governance by staking their tokens on the governance pool.

  • Vote for World Festival Location:: JOY holders can choose where the Festival will be held. The World Land owners can earn rewards by voting on their land
  • UCC Polling: JOY holders can vote on which content will be added to the game.
  • DAO Governance: JOY holders can propose and vote for proposals to game improvements, DAO operations such as community fund usage, and future roadmaps.

JOY Tokenomics runs in a fixed total token supply of 1 billion.

The team has denounced the token minter role, and related contracts have been fully audited by CERTIK The tokenomics has also been legally opined to be non-security by legal professionals.

4. Grant Proposal

The DKR team hopes to receive a total of 1.0 million USD (7,112,375 Klay) in support from the Klaytn Community Fund.

90% of the total fund shall be used for User Acquisition Marketing, whilst the remaining 10% shall be used for Smart Contract Fee Delegation purposes.

1. Marketing: 900,000 USD (1 Year Spending)

  • Performance Marketing (UA Marketing via Facebook, Twitter, Google Ads, etc.) - 70% (630,000 USD)
    • Target: Average CPA $5 or below for both PC (Web) and Mobile, Global (Considering uninstall rate 50%)

*Unit: USD
Market Target CPI (iOS) Daily Spending Target CPI (Android) Daily Spending

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<Source: DEVTODEV, Cost per Install (CPI) in Mobile Games>

  • We plan to acquire at least 90,000+ real users.
  • There will be an activation huddle criteria (Such as creating a wallet, Tutorial Clear, etc.) for the successful acquirement of a user. Therefore, our targeted CPA is reasonably set higher than the market average that only considers App (Game) installs.

2. 3rd party Platform Marketing (GameFi.org, Noctua Network, ISKRA, P2E ALL, DAPP Radar, etc.) - 20% (180,000 USD)

  • The DKR team plans to leverage various guilds/platforms, including GameFi.org (Vietnam), Noctua Network (SEA), ISKRA, and P2E All (Asia, SEA), as well as utilize strategies such as banner marketing on online portal sites.

  • In addition to Web3 guilds/platforms, there are plans to collaborate with Web2 gaming platforms for marketing efforts.

  • The estimated predictable CPA (Cost Per Acquisition) is estimated at $10 per user or less, with plans to secure over 20,000+ users.

  • In the event that suitable use cases are not found for the allocated funds among third-party platforms, any remaining budget will be entirely converted to an additional performance marketing budget.

3. Public Relation / Global Offline Expo / OOH Marketing - 10% (90,000 USD)

To enhance the credibility of the project, there are plans to carry out the following activities on a quarterly basis, in collaboration with the DKR team, the Klaytn Foundation, and partners:

  • Press Coverage: Engage in regular press coverage and media reporting, in coordination with the DKR team, the Klaytn Foundation, and partners, to strengthen the project’s reputation.

  • Offline Events: Organize and participate in offline events in partnership with the Klaytn Foundation. This will include events such as G-Star (South Korea), Tokyo Game Show (Japan), E3 (USA), and Gamescom (Germany).

  • Global Out-of-Home Marketing (OOH): Execute global out-of-home marketing campaigns, including advertisements on buses, subways, airports, and event venues, as well as booth displays, to promote the project.

These measures aim to bolster the project’s trustworthiness and credibility in the industry.

4. Fee Delegation and Smart Contract Usage Fee: 100,000 USD (Used over 2 years)

  • Certain functions of the smart contract have been developed to execute by receiving user signatures on the server. While Fee Delegation, a feature supported by Klaytn, was an option, it could only be utilized in Kaikas, which posed a significant drawback as it is not supported by wallets using the Web3 SDK like MetaMask. Due to this limitation, the approach of utilizing server-initiated transactions was adopted. As a result, the transaction fees incurred by transactions sent from the server are covered by the team.

  • With the expansion of the service through the second marketing phase and the influx of users, the project would face a considerable burden in terms of fees. Until substantial revenue is generated, the intention is to alleviate this burden by incorporating it as part of the Klaytn Community Fund.

Following the outlined approach, we will calculate the precise and efficient Cost Per Acquisition (CPA) for user acquisition. Based on this calculation, marketing efforts shall be executed accordingly. To ensure transparency, all marketing reports will be uploaded to the Klaytn Forum on a quarterly basis.

The allocation for Fee Delegation and Smart Contract Usage Fees will be entirely reverted back to the ecosystem as transaction fees. In other words, not a single KLAY will be wasted through inefficient methods like airdrops.

**We commit to achieving all quantitative KPIs, and if market conditions change or changes are required due to regulations, natural disasters, force majeure, etc., we will share these changes in advance and seek consent from Governance Council members before implementing them. In cases other than these exceptional circumstances, if the project cannot proceed as planned, we intend to return the remaining KCF funds.

For the breakdown of budget, please refer to:

5. Expected Impact

1. Increase Klaytn Users by 100,000
2. Daily Transaction Increment by 4,000,000 Tx
3. Increment in Klaytn Awareness over 80%

  • A series of surveys will target blockchain users or gamers from the countries that both Klaytn and DKR have collectively identified as their target and expansion markets. These survey results will be publicly shared on the Klaytn Forum.

DKR Transaction History

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<Source: Drawshop Kingdom Reverse Team, DKR OBT Transactions >

Based on the historical data and our estimation, as game contents and users increase, Tx/Wallet/Day (TPWPD) increases dramatically. This ultimately means that these transactions shall contribute drastically to the Klaytn Ecosystem.

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<Source: Despread, Japan Web3 Bible Part 2>

Based on the metrics disclosed by Klaytn Square and other institutions, the aggregated daily average on-chain transactions for the entire Klaytn network is approximately 499,158. The calculated Transactions Per Wallet Per Day (TPWPD) is 20.56 for each address.

During the DKR Open Beta period, considering users who have completed wallet integration, the TPWPD generated by all contracts is around 34.5. This is approximately 70.5% higher than the overall Klaytn network’s average.

Interpreting these differences in metrics, it can be deduced that DKR games are inducing a higher level of user interaction and on-chain transactions compared to other dApps within the Klaytn ecosystem on average.

Furthermore, as the official release of DKR approaches, additional content (Free-to-Earn, guild systems, NFT renting, NFT breeding, etc.) is being prepared. These developments are expected to generate more TPWPD than during the Open Beta phase.

Expected impact on Klaytn On-Chain Tx upon Achieving KCF Milestones

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The table above represents the expected figures calculated through simple predictions for the achievement of the final goal. While achieving the ultimate goal is very challenging, we believe that with the funds received from KCF and marketing efforts, along with the inclusion of organic viral growth metrics, the mission is obviously feasible. Various efforts will be made in every possible way to achieve the goal.

Simply through achieving KCF milestones alone, it is possible to predict an increase of over 3 times in the overall daily activity of the existing Klaytn chain. Sorely through single dApp.

For the global survey, you plan to enable blockchain gamers to participate directly in surveys through various guilds and platforms. The goal is to gather a sample size of 5,000 participants through at least 10 guilds/platforms.

The reason DKR can achieve these goals, unlike other existing dApps, is due to the integration of features such as SSO login, DKR Connect (proprietary login wallet), ABC Wallet(Ahnlab Blockchain Company), Face Wallet(HAECHI Labs), ISKRA Wallet, Neopin wallet, etc. These features help lower entry barriers to Web 3.0 games like DKR. These hurdles are further lowered by supporting Free to Earn functionality and NFT rental features, which ease users’ transition to the game. Hence, we can expect a relatively higher conversion of users into the game. Additionally, our official release of DKR Game will come in mobile App. Most of the marketing budget will be spent on mobile platform. This enables us to target much larger audience with higher accessibility to DKR Game.

6. Milestones

Our milestones promised for usage of the fund, and the results are as follows.

Key Points

  1. User Acquisition
  2. Transaction Increment
  3. Increase in Global Awareness

  • M1. 6-month

    • Achieve Daily Active Wallet 10,000 Wallets
    • Achieve Daily Average On-Chain Transaction 150,000 tx

  • M2. 1-yr

    • Achieve Daily Active Wallet 50,000 Wallets
    • Achieve Daily Average On-Chain Transaction 1,000,000 tx

7. Team Information

Company info: Nolatency Limited

Core Team info

  • Tailer

    • Tailer’s background experience includes game development from Krafton, other game publishers, and several other Web/App service development companies. In more recent years, he developed a Blockchain test-net, and led several projects as CTO. In the Drawshop Kingdom Reverse project, Tailer sits as the Project’s General Director.

  • Jade

    • Jade has worked as a Developer for Krafton, PATI Games, and many other game development companies for the last 11+ years. Specific to his experience in PATI Games, he was one of the initial members of the game “I Love Coffee,” which brought huge success. He believes that the DKR project is where he can showcase all of his know-how and insights from his experience. In this project, he works as Lead Game Developer.

  • Sky

    • Sky worked as Tech Sales and Product Manager in an IT Tech company for 8 years that has grown from a startup with a monthly revenue of $10k to a current global MNC with a net worth of several billion dollars. During his time in the IT company, he was mesmerized by blockchain technology and decided to join the DKR project out of a strong will to build experience in DeFi and P2E games. In the DKR project, SKY takes the role of Community and Partnership Manager. He believes that the DKR project will be the perfection of all P2E games where both DeFi and gaming aspects are fully incorporated into a single game, and therefore, undoubtedly successful.

  • For more team info : https://whitepaper.drawshop.io/team

8. Official Links

9. Summary

While there are several P2E Projects and other GameFi Projects in the Klaytn Chain, it is undeniable that Klaytn lacks dApps that contribute significantly to the ecosystem by generating large amounts of on-chain transactions. Of course, there are a handful of successful projects with a significant pool of users, but these dApps’ actual contributions to the Klaytn Ecosystem (via on-chain transactions) appear relatively small, considering their size.

The DKR project is a blockchain game dApp that originated on the Klaytn chain. We aim to leverage the high TPS and fast speed of the Klaytn chain to contribute optimally to the blockchain ecosystem and provide higher-performance dApps to the Klaytn Ecosystem.

We also have experience accumulated through blockchain marketing supported by the existing KGF initiative.

Additionally, we have been sharing this marketing experience with teams and companies that have utilized Klaytn, which we believe has significantly impacted the Klaytn dApp ecosystem.

Through detailed reports, as provided in the attachment, we deem that there is ample justification to support DKR through the Klaytn Community Fund (KCF).

We kindly request a thorough and positive review not only for the continuation and rapid growth of the DKR project, but also to enhance the vibrancy of the Klaytn ecosystem and its global recognition.

As for the final phrase:
Ethereum / Polygon - The Sandbox
Solana - STEPN

And Klaytn - DKR
We will prosper Klaytn once again.

6 Likes
2

Thank you for writing this specified plans for using Klaytn Community Fund.

As a holder, I have some questions and feedbacks for this proposal.

  1. 900,000 USD marketing fee
    I believe most of us understand that marketing fee and development fee in the process of launching a game is the most consuming factors on the budget. However, what the holders and community want to know is whether money spent through KCF could achieve that goal. Of course CPI index is important on measuring effectiveness of marketing, but I believe there are other feathers such as retention rate, ARPPU or others that are important measuring these indexes.

Adding up on this index-related question, 900,000 USD seems too much even if DKR team could reach up to this level.

  1. I believe 3rd category (Public Relation/ Global Offline Expo / OOH Marketing) could be more specified on the budget like this;

Offline event:
G-STAR

  • Event venue (10,000 USD)
  • NFT or FT airdrop (5,000 USD)
  • etc
  1. Regarding the transactions
    All institutions have their own different mechanism of counting transactions or related data. Even if we say that Despread’s source is correct, how could we get into conclusion of TPWPD generated by all contract from DKR 70.5% higher than overall Klaytn network’s average? I believe there needs to be some informations or data backing this clause.

Other than that, not only transaction count is only important but with transaction volume. Useless transactions(like bots) at the network cannot be seen as a contribution without significant reason.

  1. Lastly, not simply by integrating many wallets does not seem to make difference of DKR from other Dapps. WalletConnect is integrated with 300+ wallets, but integrating WalletConnect does not make the app that has integrated its solution any different from others. There needs to be specific plans on how to lower the lines of users being prohibited from entering Web3 games. *Especially with this amount of budgets in this market situation.

I have just wrote this briefly so please understand if there is anything that feels out of place, feel free to comment here

3 Likes
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Klaytn’s hope. I think there’s nothing better than DKR in performing so far

2 Likes
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Thank you PaperH for your questions and interest!

Here are our answers to your question.

Firstly, to answer to your doubt on whether DKR can really achieve those goals :

The open beta (OBT) was released for testing purposes such as bug fixes and testing the tokenomics logic.
Only a “small-scale marketing” (close to none) was conducted to attract initial game users, so there are limitations to the metrics available so far.
Especially with the upcoming official launch of the DKR game, we have included several updates from the OBT, which has been highly appreciated by our users during the OBT season. We hope that everyone could review the overall record, including the fun and completeness of the game, the cyclic structure of the tokenomics, sustainable development capabilities, and the team members’ history, all of which were part of the activities with Klaytn.

Furthermore, up until the beta service version, it was released solely on PC Web (Unity WebGL), resulting in a significant number of users from South Korea, where PC usage of the Klaytn chain is high. Therefore, we may not yet have a successful metrics.
(Frankly, if this project were in a situation where there were already successful metrics to definitively answer this question, I don’t think KCF’s support is particularly necessary.)
Please focus on the growth potential of DKR, considering its introduction, community inclusiveness and response, evaluation criteria, and various attached reference sources.

Additionally, regarding retention, in the official version, there are numerous features that ensure daily engagement through Free-to-earn functions (earning JOY through PvP victories, achieving JOY through scenario mode, earning JOY by watching ads, earning JOY by daily attendance, etc.). If DKR can generate hype in the market as KCF and emphasize both fun and completeness, it can boost retention to higher levels more easily compared to Web2 games that rely solely on entertainment.

Separately, metrics related to ARPU or ARPPU are not the objectives or achievements through KCF. ARPPU pertains to the developer’s revenue and isn’t directly related to the parallel growth with Klaytn. It’s considered a metric that DKR’s team needs to address and improve on its own after the official release to increase revenue.

Regarding the question on 900,000 USD being too large :

We want to emphasize that the proposed $900,000 USD from our team is by no means a substantial amount. The targeted countries include various Southeast Asian nations, Japan, and many more. Even for major game studios (or indie game studios) for Web2.0 Games(whose marketing is relatively easier than Web3.0), marketing expense upon official game launch in single country, often may exceed over 1 million USD. Additionally, Klaytn’s global recognition is relatively moderate, so we believe that if we fail to generate hype within the first 3 months after launch, it could become challenging to engage users within the DKR and Klaytn ecosystems.

Even with just the beta version that has already been developed, DKR’s game contents were proven large. Within the broader game categories of the Metaverse (World Land) and single-player growth mode (Local Land), there are numerous contents that users have experienced and played. Even the 1v1 battle system, PvP, was played by over 304,172 times during the beta period. With over 10 consulting chapters, a system where multiple users can form Merchant Guilds (guilds) to compete, and a high level of optimization on the web platform, DKR’s technical expertise and achievements have been recognized by external evaluations and patent acquisitions within the industry. It’s understood that there’s no risk-free investment.

However, for a project like ours, which has maintained its growth potential and delivered results diligently and honestly for the past 2 years, staying committed to Klaytn, we sincerely hope for comprehensive support to empower the DKR project to soar alongside Klaytn. Your unwavering support would be greatly appreciated.

Next, to elaborate more on PR/OOH/Offline Expo, etc.

Participated in:
(2022)
KBW 2022 - Jeju Stage Speaker
(2023)

  • GM Vietnam Klay Vie - Speaker
  • Selected in the Top 50 for 2023 SNIP Korea Indiecraft
  • Invited and participated in 2023 SNIP Korea Indiecraft IndieFesta with booth promotion
  • Invited and participated in the 2023 K-Contents-Related Industry Business Networking event organized by KOCCA in the game section

Upcoming participation:

  • Invited and participating in the 2023 SNIP GXG2023 for the indie game section and hosting exhibition
  • Selected for the indie game section and hosting exhibition at the 2023 Seoul Economic Promotion Agency Tokyo Game Show
  • Selected for the blockchain section and hosting exhibition at the 2023 Ministry of SMEs and Startups Singapore SWITCH event
  • Selected for the game section and hosting exhibition at the 2023 KOCCA Thailand K-Expo B2B/B2C sessions
  • Planning to attend the 2023 Games on AWS event in the gaming company sector

Your question seeked expenditure summary for each of above (and future) events.
For this, we will create detailed plan each quarter on Klaytn Community forum for transparency, once we get confirmed with this proposal. (This is particularly because of the fact that there is no guarantee that the event will be hosted in the future - other than what was above)

In addition to the mentioned events, there are plans to participate in blockchain events like GDC and KBW towards the end of this year and next year. As the target isn’t limited to South Korea, it seems that G-Star participation might not happen immediately.

Furthermore, we believe it’s a positive direction to collaborate with Klaytn for offline events, not just for DKR. Organizing events jointly could lead to growth opportunities. For instance, the previous Klay Vie event in Vietnam was attended through an invitation from the Klaytn Foundation. we are discussing this aspect informally with foundation staff as well, as we believe hosting or participating in events together can contribute to mutual growth.

Regarding your question on transactions :

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We would like to refer back to the table you shared in the original text to provide an answer. The statistics are based on the actual aggregated transactions during the OBT period that you provided. In DKR, there are various types of content, and as multiple contracts operate for each content, we were unable to provide all the contracts separately. Therefore, we summarized the data into a single table.

I’ve shared some key contract addresses, and based on these, you can use scopes to verify the actual transaction history.

0xA035F4c2Db000EE4eBD2bA06366B1977E7e4Ed6D (NFT-Fi)
0x6119F654Fd0f9B70c1C1c0875a045CB0650D2E13 (JOY Earn)
0x9A918d794D32226fAf833d6483036af5F687Db25 (Festival Vote)
0x0BD5f0698Af6Fa5d4696C122F44653e9B5d071F1 (Land-Fi)
0x84539beE87Dc041eb2e921543e5E60D1BFEA3C7C (Gacha & Shop)

When you review the scopes, you’ll see that “meaningless transactions” cannot occur within DKR’s contracts. Users acquire JOY tokens through the game or obtain in-game items and NFTs by spending JOY. They can also use JOY to lock up sJOY and participate in voting for Festival locations, similar to Curve.fi. All of these actions involve receiving or spending value, as that’s the only functionality present in the contracts.

This can be verified through the contract code, and if contract code review is required during the proposal evaluation process, we can provide it under NDA.

For the last question regarding “Wallets” :

I’d like to clarify on the confusion on what we meant by integrating multiple wallets.
Our goal is not simply to integrate multiple wallets, but to create a different approach compared to DApps that require the use of wallets like Kaikas or Metamask from the start.
Unlike those, our game aims to provide a seamless experience, enabling users to easily enjoy the game without the need to initially create a wallet. We achieve this through Single Sign-On (SSO) and even Guest Login, eliminating wallet-related hurdles and making the experience as straightforward as traditional games. This sets our concept apart from Wallet Connect.

We’ve already developed all these aspects to break down the initial entry barriers that many DApps overlook. For instance, users who use SSO or Guest Login will only have to interact with the blockchain when they proceed further in the game, like acquiring JOY tokens. At that point, we’ve structured the User Experience (UX) flow so that the easiest-to-integrate wallet system is used. Face Wallet, for example, supports Unity through its SDK, allowing seamless integration without the hassle of app switching, making it convenient for users to create a wallet without dealing with seed phrases. This exceptional UX flow is designed to enable Web2 users to smoothly embrace the P2E experience of DKR without discomfort. We consider Face Wallet just one example, and we’ll continuously seek to enhance UX for users with more features and structures, striving for continuous improvement.

The integration of various wallets, as you rightly mentioned, isn’t solely for users who are new to DApps but also for blockchain users who are familiar with using wallets. As every user has their preferred wallet, catering to these users is crucial, just like addressing users who are new to blockchain. Each user’s choice of wallet matters, and we’re committed to integrating the wallets that hold a significant user base, thereby lowering the entry barrier and preventing user attrition.

Furthermore, team has sufficient development capability, and the issues you mentioned have already been addressed to some extent. This is not something that will be resolved through the Fund, but rather through the technical expertise of the DKR team, so a separate grant is not needed.

Lastly, DKR is already very close (matter of weeks) to official release. Therefore, additional development funds are not necessary.

The fact that DKR is an interesting game, as confirmed thoroughly through community reactions, evaluations from the DKR team, partners, and the South Korean government, both domestically and internationally. Additionally, through the establishment of foundations and hotlines, we have been engaging in continuous on-chain activities through regular communication every week. Even during the OBT period, we can proudly say that we are a skilled team that has been working with users to improve various issues.

If we were to receive the grant proposed in this KCF in full, team has full confidence that DKR can become the second Axie within the Klaytn chain, taking its place and glory.

Hope above answered your questions and doubt, and do feel free to ask any other questions or doubts to this thread, we’d love to answer as much as possible!

Thank you.

6

Requiring a total of 7,112,375 KLAY is unnecessarily high. In particular, I saw an article saying that 90% of this grant will be used for marketing to increase DKR users, and this article is not appropriate for a grant request.

I would like you to write about how you will contribute to the KLAY ecosystem.

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Hi @Creder-Itcen . Thanks for your comment.

This proposal is quite lengthy, perhaps you must’ve missed it!

Your comments are pretty well explained under the section 5. Expected Impact, particularly this table.
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Lastly, as previous comment, the KCF amount is never too large, considering the quality and the quantity of users that we are aiming to onboard. (Please refer to our previous reply too! )

As far as how we understand, Current Klaytn Ecosystem is very short of both Users (Active Wallets) and Active On-Chain Transactions (which in-turn contributes to Klay Burning Mechanism). What we are aiming for this KCF is to use this fund efficiently to increase active users in Klaytn ecosystem. This will eventually lead increase in gas fee burn via burning mechansim based on the increased transaction.

Therefore, total of 7,112,375 KLAY is never be too large, considering the massive impact it will create (+fulfilling Klaytn’s needs).

Thank you.

8

Can you estimate the massive impact that 7,112,375 KLAY will have in numbers?

1 Like
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As we just updated, KF will not express endorsement on any proposals during the KCF Grant pilot period based on the experience of the case of the proposal from the Kingdom Studios. Instead, KF will facilitate our GC members to provide their inputs to the proposals.

This time, we believe Wemix @WM_DennisPark and MBX @MARBLEX can provide their inputs to the proposal.

10

Hi @Creder-Itcen

Based on our estimation :
Milestone completion will create at least 75k+ Unique Daily Active Wallets,
create 1.5+Million genuine transactions (which in-turn burns 2,250+ Klays everyday)

Should we pass the Milestone, and receive full amount of the Grant,
We should be able to further expand the goal to the ultimate level,
where we will create at least 125k daily active wallets that creates at least 4.5M+ onchain transactions daily. (Burning at least 6,750Klays per day)

Obviously, above estimation was done is very subjective to market condition. However, we did our best to summarize the impact as conservative as possible, and intend to create even better performance if situation allows.

Thank you.

11

Dear DKR team, thanks for the submission!

Recently we announced that we need to create KLAY value creation with the ecosystem partners during KSL 2023.

It seems like 900K USD worth of KLAY will be used for marketing. But the expected result is to burn 6,750 KLAY (worth of 880 USD) per day, which requires 1,022 days (about 2.8 years) to match the number. Is there any other way to contribute more on that?

We are discussing other ecosystem partners like Ozys, Superwalk, KNS, Orakl team, etc. As an example, the Superwalk team recently sold their 1st anniversary NFTs using only KLAY. I think DKR team also can contribute similar way.

Thanks.

12

Hi @Colin_Kim thanks for your question.

Of various purpose and goal of this grant, one is increasing on-chain transactions within Klaytn ecosystem, but another includes massively increasing “active wallets” and “active users”.
As users onboard DKR, they will create and trade using JOY tokens or KLAY, and thereby setting new passageways to participate in other projects within Klaytn network.
We believe that burning Klay for sustainability is important, but creating real traffic within Klaytn is also a crucial mission for Klaytn (and purpose of the KCF). We are working to capture all these missions.

Furthermore, DKR has already minted thousands of NFTs using KLAY, and we do plan to do next minting rounds via KLAY and JOY. However, what we all should agree is that such event is one-off and only triggers short term tx contribution and no more. Any KLAY attained through such minting sales will eventually end up getting liquidated to the market.

If you genuinely believe that such event is really contributing to the ecosystem, we are already doing it, and we have plans to do more.
But our team do not genuinely believe that such event is NOT a ideal way of contributing to the ecosystem. It just happened because there was some matching needs from minters and mintee.

Lastly, we understand that KLAY’s worth does not come from burning alone. The true worth comes from people actually using the network and thereby the growth of the ecosystem.

As the ecosystem grow with growth of active user pool, the team believe that it will truly bring the incremental value to KLAY.

Thank you

13

Thanks for the answer, @Jay_Hwang1 !

I agree that one time tx burst does not help Klaytn ecosystem growth in a long term. But also generating enough transaction is not sufficient in terms of value perspective, comparing $900K vs $880 daily (ultimate goal).

Can you consider another mechanism to contribute KLAY burn rather than generating transactions?

14

Hi @Colin_Kim

I would like to highlight that our action via KCF will bring multiple incremental value to Klaytn Ecosystem (such as new active wallets, etc.) By the time we reach our ultimate goal - KLAY price will be higher, and that means daily burning amount shall be obviously higher than $880.

But, keeping above aside, increasing KLAY burning is just a side impact of our proposal, which we had to bring in for previous question, but it was never a main goal.
We are not proposing to spend 900k to burn 880dollars per day.
But rather, our proposal is centered around to spending it wisely to onboard more real unique users into Klaytn Ecosystem whom may further expand their activities to the rest of other Klaytn’s dApps.

If you are really considering on a mechanism that increasing value of KLAY by only burning Klay tokens, I can only say that the easiest way is to transfer all KLAYs in KCF Reserve to 0x0 right now.

Obviously, doing so will not ultimately create a long-lasting impact on KLAY price. When compare to real world, it is the same thing as banks disposing notes that has not been circulating in the market, to increase the value of the currency. (which is meaningless thing to do after some time.)

Therefore, what we are proposing to increase user pool for klaytn (via DKR Game) as a start, and thereby increasing the worth of KLAY via increasing usage of KLAY (and partly via token burn due to increased Tx)

15

If our proposed grant is too large, we will be happy to reduce the grant size and milestones by half.
(We can re-propose for the rest half, after achieving our milestone.)

I hope that other GCs can comment on our proposal with having above in mind.

CC. @WM_DennisPark @Shawn_WEMIX @MARBLEX Please share us your thoughts (since KF have tagged you :slight_smile: )

16

@Jay_Hwang1
In addition to Colin’s inputs, most of KF members expressed their concern about the size of proposed budget and its impact on KLAY price, which will also make negative effects on the success of DKR.

17

Hi @KlaytnGovernance0

Based on the feedback from KF and other GCs, we are more than happy to reduce the absolute grant size as mentioned in the previous comment.

Here is the summary of redueced proposal :

The DKR team hopes to receive a total of 300kUSD (2,425,737 Klay) in support from the Klaytn Community Fund.

90% of the total fund shall be used for User Acquisition Marketing, whilst the remaining 10% shall be used for Smart Contract Fee Delegation purposes.

1. Marketing: 270,000 USD (6 month Spending)
→ to be spent proportionally on Performance Marketing, Platform Marketing and OOH marketing.

2. Fee Delegation and Smart Contract Usage Fee: 30,000 USD (Used over 6 months)

Milestone
Our milestones promised for usage of the fund, and the results are as follows.

  • Achieve 15,000 Daily Active Wallets
  • Achieve Daily Average On-Chain Transaction 300,000 tx (thereby creating incremental KLAY Burn at least 450klay per day)

If smaller grant is possible, we are willing to work with the grant, create maximum impact and share the result transparently to the community.

Once milestones are achieved and we prove ourself making positive impacts to the Ecosystem, we can discuss more on the further grants in the future.

Thank you

18

KCF support is not the only method for marketing. The Klaytn Foundation will also be able to provide opportunities to connect with DAPPs that are active among global and domestic users within Klaytn. Even if you don’t receive KCF, there are DAPPs that are highly recognized. Additionally, there is no guarantee that simply marketing will have long-term effects. That too is likely to be temporary. Therefore, we believe that the sustainability of services and the attractiveness of DKR are essential capabilities.

19

Hi @SJ_ppp

KCF may not necessarily have to be used exclusively as a marketing fund, but conversely, there’s no reason it can’t be utilized as a marketing fund either. If KCF is considered a fund that should be used somewhere, we propose it with confidence that we can create impact more efficiently through this fund than anyone else.

Furthermore, DKR has already established cooperation with the majority of dApps existing on the Klaytn platform and has secured a significant portion of current Klaytn users. Our “marketing” proposal does not aim to acquire Klaytn users, but instead has a broader goal of bringing users from other chains and Web 2.0 into the Klaytn ecosystem through DKR.

We acknowledge that many dApps have already achieved success without KCF. DKR, at this point, is on the path to success, and we’ve demonstrated a lot of potential with the launch of the BETA service.
Therefore, our proposal is not based on the idea that we can’t succeed without KCF. We are prepared to launch the official version, and we’ve made this proposal because we want to boost our journey towards success through KCF and contribute to the growth of Klaytn.

The effects of marketing are likely to be long-term. Once again, we want to emphasize that our goal is to attract actively engaged users within the Klaytn ecosystem. In other words, we haven’t included meaningless wallet growth as a milestone. As mentioned in previous responses, Klaytn requires the influx of new users and holders, and we aim to address this via KCF.

20

In the past, the reserve was paid too excessively, and the current value of KLAY has decreased.

Because KCF ultimately delivers it to KLAY, it causes a lot of selling pressure. Therefore, there is a need to refrain from providing current KCF support.

Since the value of KLAY affects all BAPPs in the ecosystem, I believe that in the current situation, support should be considerably more stringent and avoided.

21

Hi @sj_p

We too find it unfortunate with the history.
We believe that your concern above should be addressed directly to KF, not to us.

If I share our view, KCF being made available as reserve for ecosystem growth, we are here to apply for and make best use of it. Otherwise, KF should entirely lock this reserve, or burn it entirely, because.

Thank you.