KSP TOKENOMICS

KSP is a reward given to ecosystem participants and serves as a strong incentive to secure more liquidity in the klay swap protocol. It provides meaningful liquidity-based transactions and more financial opportunities through token economy structures that enable efficient distribution and value maximization of limited KSP resources.‌​

KSP mining quantity

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The total daily mining quantity of KSP is 86,400 KSP, which is distributed excluding the developer commission for the first two years, and halving is applied every two years. Please refer to KSP Allocation for detailed mining plans.‌

​​Items	Quantities
Distribution by block	1 KSP
Developer commission (15%)	0.15 KSP
KSP mining per day​	86,400 KSP
​	*** Commission excluded: 73,440 KSP

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KSP inflation distribution ratio

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KSP inflation is distributed to single, pair (existing/plus), and KSP stakers who are the key contributors to the KLAYswap ecosystem. Distribution ratios can be adjusted through governance voting.‌

Initial (Pre-Halving)

Distribution target	Distribution ratio by block(%)	Distribution per block	Daily distribution (86,400 blocks)
Single depositors	5%	0.05 KSP	4,320 KSP
Pair depositors(Existing, Plus)	45%	0.45 KSP	38,880 KSP
KSP staking	50%	0.5 KSP	43,200 KSP
Total	100%	1KSP	86,400 KSP
​	* **Except commision	0.85 KSP	73,440 KSP

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Currently (First Halving Applied)

Distribution target	Distribution ratio by block(%)	Distribution per block	Daily distribution (86,400 blocks)
Single depositors	3%	0.015 KSP	1,296 KSP
Pair depositors(Existing, Plus)	35%	0.175 KSP	16,120 KSP
KSP staking	62%	0.31 KSP	26,784 KSP
Total	100%	0.5KSP	43,200 KSP

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Value maximization through KSP deflation

The KLAYswap protocol has a flexible token economy structure that can maximize the value of KSP by controlling KSP distribution through a deflation model. This not only offers high level of APR for liquidity providers such as pool depositors and KSP stakers, but also builds a more robust and sustainable ecosystem where the scarcity value of KSP gradually increases as more users participate.‌

The effect of reducing distribution through halving

The halving of each two-year cycle slows down KSP inflation by reducing the number of KSPs distributed per block. Please check for KSP Allocation for detailed inflation plans.

pageKSP Allocation

The effect of reducing distribution through Buyback & Burn

• KSP incineration using bi-back funds: 50% of transaction fees generated from all pools are raised as KSP buy-back funds and used for KSP incineration.

• Incineration of KSP pool registration fee: A certain amount of KSP is used to create new pairs in KLAYswap, and the cost gets incinerated.