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

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

​‌

KSP inflation distribution ratio

‌‌

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

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

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.

KSP 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.

Last updated