Klaytn’s token economy is designed to encourage and incentivize the participants within the Klaytn ecosystem to spontaneously engage in economic activities by creating and exchanging values with one another. Such activities collectively build up an economy of circulating wealth that helps improve the stability of the Klaytn platform and also drives economic growth of the entire ecosystem.
In order to maintain the network and strengthen the economic growth at a greater scale, Klaytn compensates more diverse forms of contributions from a wider range of participants. In doing so, Klaytn rewards all economic entities in the Klaytn token economy that makes meaningful contributions via a transparent evaluation and incentive mechanism called Proof of Contribution (PoC).
Proof of Contribution aims to assess the contribution level of all economic entities and provide rewards that correspond to each entity’s level of contribution. Currently, PoC primarily focuses on two types of economic entities: service providers and end users.
To achieve mass adoption of blockchain technology, it is important to implement and leverage widely popular blockchain applications to create a solid foundation of end users who discover value from such applications. Our service providers play a key role in the Klaytn economy as entities on the supply side. They not only create a supply of services to satisfy end users but also serve as channels of new user acquisition and as anchors of user engagement. Acknowledging their contributions, Klaytn is designing PoC as an incentive mechanism for service providers to effortlessly join the Klaytn platform and enjoy sustained support as they continue to grow in our ecosystem.
Klaytn is currently reviewing the potential for enabling PoC an incentive mechanism for end users as well. Our end users are the fundamental driving force behind economic growth as the primary demand-side entities, creating valuable market signals by carefully selecting and using services and sharing reviews with each other. During the early operation period of the Klaytn platform, we will analyze the user behavior in order to formulate a method of quantitatively assessing a user’s contribution to the platform.
Further, Klaytn also operates the Klaytn Improvement Reserve (KIR) for sustainable ecosystem growth. As technology continues to improve and as the needs of users change over time, our platform must be able to quickly adapt to new circumstances that arise. To respond to such changes, we must undertake expenditures for three categories to maintain Klaytn ecosystem:
Engage in research and development, and support infrastructure.
Create a better development environment and enhance the developer experience.
Develop programs to encourage participation in the Klaytn ecosystem including community events, meetups, hackathons, etc.