vKSP refers to the voting power of overall KLAYswap governance and participants must stake and acquire their own KSP to acquire vKSP. However, even if you stake the same quantity of KSP, the amount of vKSP acquired will vary depending on the length of the staking period. This means that long-term governance participants will get more voting power. We believe that it is only natural that long-term participants exercise strong decision-making rights for KLAYswap’s growth.
Voting power by staking period for 1 staked KSP
1–1. KSP Distribution
If you stake your own KSP, you can earn the voting power (vKSP) and receive additional KSP based on your governance contribution. The KSP mining distribution rate for eligible voters is set to an initial value of 20%, which can be changed through an overall governance vote. Of 73,440 KSP currently distributed daily, 29,376 KSPs will be distributed to vKSP holders, while the remaining 44,064 KSP will be distributed to pool liquidity providers.
1–2. KSP Staking Policy
You can apply for a staking contract for an integer quantity of KSP. You need to proceed with an Approve procedure for KSP for your first staking contract.(1st time only)
Voting rights (vKSP) obtained through each staking application will be based on KSP quantity and contract duration (4/8/12 months).
Staking rewards are distributed proportionally to the user’s share(%) of vKSP vs total vKSP, (i.e., your vKSP/ the total number of vKSP).
If several applications for different periods require renewal of previously acquired vKSP, reward efficiency “Boosting” may result in additional vKSP given to reflect the quantity of KSP staked and its corresponding contract period.
The final date and time of staking contract expiration will be processed in accordance with the following criteria: Case 1. Current time + New contract period (4/8/12 months) ≤ Existing contract end date and time → Existing contract expiration date and time is the final expiration date. Case 2. Current time + New contract period (4/8/12 months) > Existing Contract expiration date and time → Current time + new contract period date and time is the final end date
Cancellation is not possible before the end of the contract period.
Distributed KSP rewards can be freely claimed and received in wallets.
If the existing KSP balance changes due to additional KSP staking/unstaking, any accumulated KSP rewards will be automatically claimed and sent to your wallet.