What is klaytn？

Klaytn is an open-source public chain owned by South Korean Internet giant Kakao for anyone who wants to build, work or play in the Metaverse. Klaytn has low latency, high TPS and immediate finality (Immediate finality.), which is the best blockchain for building games and realizing the Metaverse.

Klaytn is a highly optimized, BFT (Byzantine Fault Tolerant) based public chain designed to meet enterprise-level reliability. The main design goals are;

• Immediate finality.
• High TPS for real use cases.
• Reduce the cost of running blockchain applications.
• Lower the barriers to entry for end users.
• Simplify the industry's technology adoption process.

Native Token: KLAY

KLAY is Klaytn's main internal transferable cryptocurrency, used to pay transaction fees when creating or executing smart contracts or transferring KLAY.

KLAY is a necessary element to run the Klaytn distributed application platform. It is a form of payment by platform clients to consensus nodes that perform requested operations. In other words, KLAY is an incentive; it ensures that developers write high-quality applications (wasted code costs more) and that the network remains healthy.

Units of KLAY

Klaytn uses the following unit system for KLAY.

The peb is the smallest currency unit.

ston is an alias of Gpeb, introduced for convenience.

1 AKLAY is 10^18 peb.

Token Economic

Klaytn's token economy aims to create a sustainable funding structure to empower its ecosystem, growth plans and strategic investments. Many public blockchain projects have currency systems that specifically incentivize node operators (miners or block producers), focusing only on the technical aspects of network maintenance. However, such a design ignores the importance of incentivizing other types of participants who contribute to the growth of the network's token economy or invest in the long-term growth prospects. In contrast, Klaytn's token economy is designed to compensate for more diverse forms of contributions from a wider range of participants, and Klaytn's token economy is designed to compensate for more diverse forms of contributions from a wider range of participants, and Investment projects with a built-in funding structure to secure ongoing resources to drive future growth plans and strategically source more than just maintain their blockchain nodes.

Funding Structure

Klaytn's funding structure runs continuously as blocks are generated on the Klaytn network. For each new block, the newly issued KLAY and the sum of transaction fees used in the block (collectively referred to as the 'block reward') will be aggregated and distributed to the following three target accounts according to a predetermined ratio:

Klaytn Governance Committee reward: 50%

Klaytn Growth Fund (KGF): 40%

Klaytn Improvement Reserve (KIR): 10%

6.4 KLAY will be minted with each new block. This means that approximately 200 million KLAY will be minted per year, which is equivalent to 2% annual inflation compared to the 10 billion KLAY issued by Genesis (the annual inflation rate may change through the Klaytn governance process).

Why choose Klaytn

Compared with other public chains, what are the differences of Klaytn?

Klaytn is the trust layer of the Metaverse

Klaytn aims to be the foundational trust layer of the Metaverse, respecting the participation and contributions of all communities, empowering them and bringing them together in new worlds. The most important design principles are: to help pioneers easily build applications and organize communities in a scalable way. Based on this principle, Klaytn is designed to meet the following requirements:

High Performance

• Throughput (TPS) and finality
• The main chain should handle at least 4,000 TPS
• The main chain should guarantee the finality of instant transactions with a block generation time of one second.

Scalability

• Service chain is the default L2 solution of Klaytn 2.0, which is customizable and easy to deploy. Service chains can have their own governance and connect to the Klaytn main chain to anchor data or transfer assets.
• Enterprises or large networks often want to have their own dedicated execution environment. Through the service chain, they can maintain an independent high-performance execution environment, which is not affected by other blockchain applications.
• Other scalability solutions, such as sharding or rollup, will be available in the near future.

Low Cost

• End users should not incur any higher transaction fees beyond those required by legacy systems.
• Transaction fees should be stable, determined by the complexity of the transaction itself, not by surrounding factors.
• For a gas price of 250 stons, a 1 KLAY transfer would incur a fixed cost of 0.00525 KLAY. (21,000 Gas x (250 x 10^-9) = 0.00525 KLAY for KLAY transfers)

Ethereum Compatibility

• Development tools: Any tool that can run on Ethereum will run seamlessly in the Klaytn ecosystem. From the perspective of interface and execution, Klaytn's technology stack is comparable to the existing Ethereum stack. New tools created in the Klaytn ecosystem can be mutually adopted in the Ethereum ecosystem.
• EVM and API: By building on top of the existing Ethereum stack, any improvements made to the open-source codebase of the EVM and supporting libraries are inherited. Supporting such equivalent opcodes and stack logic in the Klaytn EVM environment will ensure that execution behavior is equivalent; and supporting a set of JSON-RPC APIs with equivalent endpoint payload syntax guarantees a full Ethereum interface, etc. Effectiveness.
• Core Development Contributions: Supporting Ethereum Equivalence best translates into mutual benefits for Klaytn and the Ethereum ecosystem. Most Ethereum Improvement Proposals (EIPs) can be migrated and adopted into the Klaytn core development agenda, and in turn, Klaytn Improvement Proposals can promote the development of Ethereum and the EVM. When the development community contributes to one ecosystem, they are actually contributing to two ecosystems.

Klaytn 2.0 is the next phase of Klaytn that will provide the performance, decentralization, scalability and interoperability required to drive the metaverse trust layer. Klaytn 2.0 marks Klaytn's shift to focus on the Metaverse, supporting Ethereum-equivalent and comprehensive Metaverses to facilitate the blockchain building experience.