1. Summary
Klaytn Foundation is submitting a request to the Governance Council for approval of its 2Q fund expenditure plan. The table above presents the Foundation’s KLAY distribution plan for this quarter.
KLAY expenditures in the form of various expenses underwent a rigorous screening process and were budgeted for necessary expenses only. This aligns with the foundation’s philosophy of minimizing KLAY circulation. We are confident that the ecosystem selling pressure will be appropriately managed, as actual payments will be made flexibly in accordance with the KLAY circulation policy.
2. Background
KGP-6 proposal has eliminated the previous differentiation between Klaytn Growth Fund and Klaytn Improvement Reserve, and instead restructured them into the Klaytn Community Fund and Klaytn Foundation Fund, with an enhanced pre-approval function by the GC.
This proposal marks the first instance of addressing the Foundation budget since the establishment of the on-chain voting system, Klaytn Square. It specifically seeks the approval of the GC for expenses to be incurred in the remaining 2Q, until June.
3. Assumptions and prerequisites
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For each item, there are some cases where the spending plan is based on the amount of money (USD, KRW, etc.) and some cases where the spending plan is based on the number of KLAY. In cases where the spending plan is based on monetary units, the quantity of KLAY spent will fluctuate according to changes in KLAY price during the quarter.
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The current budget assumes a KLAY price of $0.18 and a KRW/USD exchange rate of 1,330.
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Even after budget approval, we plan to defer some spendings if the market situation does not meet the criteria of KLAY circulation policy. This approach is necessary to avoid potential selling pressure on CEX and to manage the impact of these expenses on the market.
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On the other hand, we aim to complete disbursements for projects that are not directly sold in the market through node staking and lock-ups by June. These projects will receive timely allocations as per our plan.
4. KCF / KFF budget details
5. Execution
Items within KCF will undergo the GC approval process individually before being utilized. For instance, 1 million KLAY designated for integrating the Klaytn Network this quarter will only be spent after providing a detailed report on how the KLAY will be used and the recipient involved.
Regarding the KFF, approved projects will be promptly initiated to ensure uninterrupted foundation operations. We will openly disclose all implementation details and seek input from the GC and the community.
6. Voting Schedule
A week after governance proposal forum posting, this proposal will be moved to Klaytn Square for on-chain voting