[KGP-24] 1Q24 Klaytn treasury plan

1. Summary

Klaytn Foundation is proposing its regular budget plan to the Governance Council for approval. The table above is the comprehensive KLAY distribution plan, explaining the proposed expenditures. Given ongoing challenges such as malicious bridge asset exploits, the first quarter’s budget may be adjusted based on changing circumstances, with updates communicated through the governance forum.

Similar to last year’s 3Q23 budget plan, we’ve proactively included visible expenditures for the next quarter within this quarter’s plan to ensure stable operations during the first half. We anticipate that the presented budget will cover most expenditures over more than half a year. Therefore, it will result in a significantly lower budget for 2Q24.

Looking back at the previous year, Klaytn treasury’s total expenditure was around 80 million KLAY. Considering annual inflation of 100,000,000 KLAY to KCF and KFF, expenditures of Klaytn Foundation have been cautiously managed to stay under the supply.

2. Adding a new KCF category

Klaytn Foundation also seeks approval for an additional agenda during the 1Q regular deliberation. Currently, our expenditure at KCF covers various aspects, such as ecosystem service and infrastructure grants, developer community grants, gas fee programs, and liquidity provisions. In order to further stabilize the Klaytn ecosystem, we are proposing the inclusion of ‘Critical Network Infrastructure’ starting from the first quarter.

The Critical Network Infrastructure entails the expenses related to essential infrastructure for the development and maintenance of the Klaytn Network. For instance, the budgets allocated for ‘Infrastructure Costs for Klaytn Network Operations & Developments (1H24)’ in this quarter will be utilized to cover AWS and GCP costs for 1) mainnet and testnet operations, 2) development resources, and 3) Kaikas maintenance. Of course, the exact cost and the payment result will be disclosed transparently.

3. Monthly GC meeting & Voting Schedule

On January 17th, during the monthly Governance Council meeting, Klaytn Foundation will present the budget plan details. Your attendance and open discussion are highly encouraged.

Also, within 7 days of the governance proposal forum posting, this proposal will be moved to Klaytn Square for on-chain voting.

4. KCF / KFF budget details (Assumed KLAY price of $0.18)

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