[KGP-3] Reduction of Klaytn Block Reward

In consideration of the current market situation, additional minting size compared to other blockchain protocols, Klaytn team suggests the reduction of Klaytn Block Reward as follows.

Current policy on Klaytn Block Reward:

  • 9.6 KLAY is minted per block

  • Minted KLAY is allocated to GC (34%), KGF (54%), and KIR (12%)

Proposed policy on Klaytn Block Reward:

  • 6.4 KLAY is minted per block

  • Minted KLAY is allocated to GC (50%), KGF (40%), and KIR (10%)

  • There would be no change in KLAY allocated to GCs in compensation for the block generation

Justification

  1. Ensure sustainability of the Klaytn tokenomics
  • For the sustainable growth of Klaytn, supply of KLAY should be reduced, and demand for KLAY should be increased with the amount of KLAY burned. The value of KLAY plays the crucial role in the security of the mainnet and the prosperity of its ecosystem.

  • On the other hand, as a result of the negative situation in the global economy and the crypto market and the increased circulation of KLAY in the Klaytn ecosystem, KLAY price is experiencing a dramatic decrease. We need to respond to the situation by adjusting the amount of minted KLAY

  1. Reduce minted KLAY relative to the market circulation
  • Considering the actual demand for KLAY from the market, burned amount, and needs of KLAY for the growth of the ecosystem, supply of KLAY should be reduced to โ…” of the current block reward.

  • If we adopt the proposed policy, the amount of minted KLAY relative to the market circulation of KLAY will be reduced from 10 percent to 6.48 percent, which is lower than the average of top 20 protocols (8.6%). In terms of total supply, the rate goes down to 2% from 3% due to the proposed policy.

  • This is our first effort to adjust the supply in line with the actual market situation. In the future, the policy can be again adjusted in accordance with growth of Klaytn, changes in the market situation, and introduction of a new consensus mechanism.

6 Likes

I agree this proposal. The effectiveness of reducing the quantity of issuance being added is debatable, though.

The organization and dissemination of the KIR/existing KGFโ€™s state (including historical context) and future course appear to be more crucial than the current proposal. I believe it would be beneficial if you could provide a summary of KIR/KGF status/plan that various stakeholders, including communities and companies on Klaytn, could understand.

It seems vital to think about the direction KIR and KGF should be implemented to help the ecosystem expand rather than changing the amount of KIR/KGF reserve.

The community has recently voiced a variety of perspectives, but it appears that the crucial factor is not the sum of KLAY paid but rather if the paid KLAY is returned to the environment to increase its worth. If the foundtaion are unable to respond right away, it would be wonderful if you could share the procedure along with this recommendation.

It seems so hard to handle as pretty challenging things.
I appreciate all of your effort.


๋ณธ ๊ฑด์— ๋Œ€ํ•˜์—ฌ ์ฐฌ์„ฑํ•ฉ๋‹ˆ๋‹ค. ๋‹ค๋งŒ ํ˜„์žฌ ์ถ”๊ฐ€ ๋˜๋Š” ๋ฐœํ–‰๋Ÿ‰์„ ๊ฐ์†Œํ•˜๋Š”๊ฒƒ์ด ํšจ๊ณผ์ ์ธ์ง€๋Š” ์กฐ๊ธˆ ์˜๋ฌธ์ด๋“ญ๋‹ˆ๋‹ค.

ํ˜„ ์ œ์•ˆ ๋‚ด์šฉ๋ณด๋‹ค, KIR/KGF์˜ ํ˜„ํ™ฉ(์ด์ „ ๋‚ด์—ญ ํฌํ•จ)๊ณผ ์•ž์œผ๋กœ์˜ ๋ฐฉํ–ฅ์„ฑ์„ ์ •๋ฆฌํ•˜๊ณ  ์ „ํŒŒํ•˜๋Š”๊ฒŒ ๋” ์ค‘์š”ํ•˜๋‹ค๊ณ  ๋ณด์—ฌ์ง‘๋‹ˆ๋‹ค. ์ปค๋ฎค๋‹ˆํ‹ฐ, ์‚ฌ์—…์ž๋“ฑ ์—ฌ๋Ÿฌ ์ดํ•ด๊ด€๊ณ„์ž๊ฐ€ ๋‚ฉ๋“ํ• ์ˆ˜ ์žˆ๋Š” ์•ˆ์„ ์ •๋ฆฌํ•ด์ฃผ์‹œ๋ฉด ์ข‹์„ ๊ฒƒ ๊ฐ™์Šต๋‹ˆ๋‹ค.

KIR/KGF ๋ฆฌ์ €๋ธŒ์˜ ์–‘์„ ์กฐ์ •ํ•˜๋Š”๊ฒŒ ์•„๋‹ˆ๋ผ, ์–ด๋–ค ๋ฐฉํ–ฅ์œผ๋กœ KIR, KGF๊ฐ€ ์ง‘ํ–‰๋˜์–ด์•ผ ์ƒํƒœ๊ณ„์˜ ํ™•์žฅ์— ๋„์›€์ด ๋ ์ง€ ๊ณ ๋ฏผ์ด๋˜์–ด์•ผํ•œ๋‹ค๊ณ  ๋ณด์—ฌ์ง‘๋‹ˆ๋‹ค.

๊ทผ๋ž˜ ์ปค๋ฎค๋‹ˆํ‹ฐ์—์„œ ์—ฌ๋Ÿฌ ์˜๊ฒฌ์„ ์ฃผ์‹œ๋‚˜, ํ•ต์‹ฌ์€ ์ง€๊ธ‰๋Ÿ‰์ด ์•„๋‹ˆ๋ผ ์ง€๊ธ‰๋œ ํด๋ ˆ์ด๊ฐ€ ์ƒํƒœ๊ณ„ ๊ฐ€์น˜ ํ™•์žฅ์œผ๋กœ ํ™˜์›๋˜์—ˆ๋Š”๊ฐ€๋กœ ๋ณด์—ฌ์ง‘๋‹ˆ๋‹ค. ๋‹น์žฅ ๋‹ต์„ ๋‚ด๋ฆฌ๊ธฐ ์–ด๋ ต๋‹ค๋ฉด, ์ด๋Ÿฐ ์ œ์•ˆ๊ณผ ๋งˆ์ฐฌ๊ฐ€์ง€๋กœ ๊ณผ์ •์„ ๊ณต์œ ํ•ด์ฃผ์…”๋„ ์ •๋ง ์ข‹์„ ๊ฒƒ ๊ฐ™์Šต๋‹ˆ๋‹ค.

๊ณ ์ƒ์ด ์ •๋ง ๋งŽ์œผ์‹ญ๋‹ˆ๋‹ค. ํ•ด๋‹น ๋ถ€๋ถ„์ด ๋งŽ์ด ์–ด๋ ค์šด ๊ฒƒ์œผ๋กœ ๋Š๊ปด์ง‘๋‹ˆ๋‹ค. ์ž˜ ํ•ด๊ฒฐ๋˜๊ธฐ๋ฅผ ๋ฐ”๋ผ๋Š” ๋งˆ์Œ์œผ๋กœ ์ ์–ด๋ณด์•˜์Šต๋‹ˆ๋‹ค.

7 Likes

I agree with that proposal.
It is certainly true that the issuance volume is higher than other chains, so I agree with the decrease. However, even if there is a decrease through this agenda, it is not a small amount to allocate 100 million for KIR/KGF. It is necessary to evaluate in more detail how much the ecosystem value has actually increased through KIR/KGF.
It is also advisable to re-evaluate the existing quantities invested in the project and consider adjusting the KIR/KGF pool.
Also, for active participation of the community, it would be good to quickly support the process or platform so that the community can give opinions step by step when reviewing KIR.

5 Likes

[Update]
The proposal was approved by the Klaytn Governance Council (GC) through the voting on 21-24 October 2022. Among the 36 GC Members, 26 Members voted, and 100 percent of the participants agreed on the proposal.

  • GC Members who voted: Jump-Everstake, Verichains/VNG, Alameda Research, Ground X, Krosslab, Maekyung Media Group, MakerDAO, NFT Bank, Kracker Labs, Hanwha Systems, AhnLab, Kakao Corp, Wemade, Korea Economic Daily, GS Retail, Gumi, LG Electronics, FSN, Hashkey, Kakao Games, Kakao Entertainment, NEOPLY, SK Networks, Sygnum, Thrust, POST VOYAGER (Cocone)

  • GC Members who did not vote: LX International (retired on 31 October 2022), Kakao Pay, Celltrion (retired on 31 October 2022), Kakao Space (retired on 31 October 2022), Pearl Abyss (retired on 31 October 2022), Everrich (retired on 31 October 2022), Netmarble, AQX, Binance, Hashed-Ozys

The schedule for the parameter update based on the GC decision is as follows:

  • Baobab
    • Deadline of on-chain voting by network operators: by 2022/10/27 04:19:04 KST (105235199)
    • Expected timing of update completion: 2022/11/03 04:19:05 KST (105840000)
  • Cypress
    • On-chain voting by network operators: 2022/10/30 23:26:20 ~ 2022/11/06 23:26:19 KST (105235200~105839999)
    • Expected timing of update completion: 2022/11/13 23:26:20 KST (106444800)
3 Likes

[Update]
The update of Baobab was completed as planned at the block height of 105840000 (2022/10/27 04:19:04 KST).

1 Like

[Update]
The update of Cypress was completed as planned at the block height of 106444800 (Nov 13, 2022 23:42:59 KST)