With the introduction of governance, the current KSP distribution rate by liquidity pool (set to the initial value) can be changed through voting by vKSP holders. How KSP mining pools are selected is based on the following policies:

20% of daily KSP distribution will be distributed to KSP staking participants. (Distribution rate may change through governance vote)

80% of daily KSP distribution is based on real-time liquidity pool voting. The KSP distribution rate by pool is calculated with the formula below (3).

KSP distribution rate of the pool = ((the number of vKSP voted on that pool)/ (the total number of voted vKSP) * 80

The pool’s calculated distribution rate of the pool is aggregated in integers between 1% and 100%. ex) If the calculation of the KSP distribution rate of Pool A is calculated as 12.34%, the actual KSP distribution rate of Pool A is 12%.

KSP is distributed to the top 20 pools (based on pool distribution rate); no KSP is distributed to pools with a distribution rate of less than 1%.* Voting power (vKSP) voted in pools not included in the top 20 will be applied to the top pool, and KSP will be distributed accordingly.

Pool distribution rates may change in real time with each voters’ votes.

The KSP distribution rate of KSP per pool is calculated to reflect the voting status in real time. (changes applied approximately every 1 minute)

*** Pool voting rate**= (vKSP quantity voted on the pool)/ (total voting quantity)********KSP distribution rate**= ((vKSP quantity voted on the pool)/ (total voting quantity) * 80)

A 1% KSP distribution rate applies only when the pool voting rate exceeds approximately 1.25%.