What is Klaytn (KLAY)?
KLAY is the native coin of Klaytn, which is a leading public blockchain in South Korea. If you're interested in the current Klaytn price, you can find the KLAY price chart above.
The main focus of the blockchain is to provide a network for the mass adoption of the metaverse and the GameFi technologies. To accomplish this, the blockchain provides users with an end-to-end metaverse package that comes with everything you might need for the creation of a metaverse.
Talking about the creation of a metaverse, Klaytn supports the Ethereum Virtual Machine (EVM) as one of the developing standards for that. Thus, Klaytn makes its technological architecture similar to Ethereum's in terms of interface and execution.
Furthermore, to keep up with Ethereum's open-source codebase updates, Klaytn uses the existing Ethereum clients and interface libraries as a foundation. Lastly, it enables the contribution of Klaytn Improvement Proposals (KIPs) and Ethereum Improvement Proposals (EIPs).
Moving further, Klaytn employs the hub-and-spoke architecture, which is regarded as one of the best scalability solutions. It divides Klaytn into spokes, also known as service chains. Since the spokes can be stacked, they offer the scalability required for widespread adoption of the metaverse. Besides, the spokes can be modified to meet particular dApp requirements. This includes high throughput, unique node configurations, or personalized security settings.
Lastly, it should be noted that, with the help of the consensus algorithm known as Istanbul Byzantine Fault Tolerance (IBFT), transactions on the Klaytn network can be finished in less than one second. Additionally, this IBFT consensus algorithm provides the dependability and data consistency required for large-scale applications. It manages to do that by ensuring that data stored on the blockchain is accurate and cannot be reversed.
The Founder of Klaytn
Klaytn crypto project was launched by GroundX in 2019. GroundX is the blockchain subsidiary of leading South Korea's mobile platform, Kakao. While the asset was mildly volatile at first, its market activity became more intense in 2021. That year, the Klaytn price exceeded $1 for the first time and peaked at $3.31 in October.
The founder of GroundX is Jaesun Han. He has a degree in electrical engineering and computer sciences. Prior to founding GroundX, Han founded NexR, which was the first big data and cloud computing tech startup in Korea. Later, he was appointed board chairman of the Consortium of Cloud Computing Research and became the CTO of KT Clodware.
Besides that, he launched the Klaytn Foundation. It's a non-profit organization developed specifically for the growth of the Klaytn network. It works with Krust, a subsidiary of Kakao Corp., which invests in initiatives created on Klaytn and runs the Klaytn Growth Fund.
The Purpose of KLAY Coins
KLAY is the native coin of the Klaytn blockchain. The most up-to-date Klaytn price is available in the chart above. Essentially, Klaytn coins have three main functions, including network utilization, yield farming, and NFT minting.
Firstly, talking about network utilization, KLAY is used as a payment method for any transaction that occurs on the Klaytn Network. Besides, users can provide liquidity on the KLAYswap (the native DEX of Klaytn) by utilizing KLAY coins. This also allows them to earn other Klaytn-compatible tokens.
Secondly, in terms of yield farming, KLAY holders can also stake their tokens on KlayFi. It's a yield optimizer that provides a yield farming experience on KLAYswap.
Lastly, considering the process of NFT minting, any KLAY holder is given the opportunity to use their tokens to mint NFTs and sell them on secondary marketplaces which have partnered with Klaytn (e.g., OpenSea).
Tokenomics of KLAY
KLAY token is inflationary, which means that it doesn't have a limited supply and that more KLAY tokens can be issued whenever there is a demand. The inflationary structure may make the KLAY price more difficult to predict. The initial KLAY supply issued with the genesis block was 10 billion coins.
9.6 KLAY coins are created with each new block. 66% of the newly minted KLAY coins are re-invested. By employing such a technique, Klaytn set aside a total of $1 billion to encourage ecosystem growth. The funds are allocated across numerous incentive programs, including:
- The Klaytn Improvement Reserve (KIR) — a fund for facilities, equipment, and services aimed at enhancing the Klaytn network's performance.
- The Klaytn Growth Fund (KGF) — it deals with early-stage projects with a strong potential to have a beneficial influence on Klaytn.
- The Proof of Contribution (PoC) initiative — it rewards creators of smart contracts who help to increase Klaytn's on-chain activity.
If you intend to purchase Klaytn tokens, be aware that the KLAY price is subject to fluctuation. This occurs as a result of the volatility of the entire crypto market.
