Klaytn’s Proof-of-Contribution Incentive Program Pilot
The Klaytn Foundation is excited to announce the pilot phase of our new Proof-of-Contribution (PoC) program, to which we will be committing up to $100,000,000 worth of KLAY. Designed to encourage sustainable ecosystem growth, our new PoC program rewards users and builders of active DApps based on KLAY and stablecoin value locked, and total gas fee usage.
For this pilot phase, we will be opening applications for DeFi projects only, but the PoC program will be expanded to include NFT and gaming projects when launched in full.
- The Proof-of-Contribution program is designed to reward users and teams who contribute to the growth of the Klaytn network.
- The program will start as a pilot that rewards the growth of TVL on DeFi protocols.
- To qualify, the DeFi protocol must have a TVL of at least $50M.
- If selected, the DeFi protocol’s users and teams will receive up to 1.2% APR in KLAY rewards.
Interested DeFi protocol teams, please send in your application for our pilot round by 2 March 2022!
How it works
1. Apply for the PoC pilot program:
- The PoC pilot program will run for 3 months, starting early April 2022.
- The application deadline for the PoC pilot program is 2 March 2022.
- To qualify, your DeFi protocol must have a TVL of at least $50M, based on the average closing KLAY price for the last 30 days on coinmarketcap.com.
- Developers of qualifying DeFi protocols must submit their completed application at least 2 weeks before the start of each round.
- For this pilot phase, the Klaytn Foundation will select up to 5 applicants.
- If selected for the PoC pilot program, developers will receive two separate incentives: a TVL reward for redistribution to users and a gas fee reward for developers.
2. Receive the TVL reward:
- The TVL reward will be up to 1.2% APR of the month-on-month increase in your protocol’s 30-day average TVL (Applicable to both KLAY and/or stablecoin. The final APR will be decided between Klaytn Foundation and the selected DApp teams).
- Each month during the program, 50% of the TVL reward for that month will be vested immediately, with the remaining 50% vested 3 months later.
- If your project’s TVL falls below $50M during the vesting period, you will not receive any further TVL reward disbursements until your TVL reaches at least $50M again within the program duration.
3. Redistribute the TVL reward to your users:
- The TVL reward is meant as an incentive for your users, and must be re-distributed to them within a month of receiving each portion of the reward.
- In addition, PoC program participants must also add on a certain percentage of your protocol’s governance tokens as part of the reward distribution. The exact percentage will be decided through individual discussion with each participant.
- These rewards can be redistributed to users who contributed to TVL via airdrops, liquidity mining, or any other way you please.
4. Enjoy the gas fee reward:
- The gas fee reward will be up to 100% of the total gas fees paid by your DApp’s users. This will be paid out on a monthly basis for the duration of the 3-month program.
- This is meant to reward the builders of active DApps, and does not need to be distributed back to the users. Use it however you please!
Do note that the rewards criteria and calculation may be adjusted each round as we calibrate the PoC program.
How to apply
- Confirm that your project meets the $50M TVL requirement, and that its TVL is tracked on DeFi Llama.
- Configure a publicly verifiable, preferably multi-sig team wallet address for reward distribution.
- Complete this application form, specifying your project’s current KLAY VL and stablecoin VL, including your calculations.
We designed this new Proof-of-Contribution program to help to drive sustainable growth while rewarding active participants in the Klaytn ecosystem. If your DeFi protocol on Klaytn meets the qualifying criteria, be sure to send in your application for our pilot round!
If you have any questions about this new PoC program, please contact us at firstname.lastname@example.org.
Important note: The purpose of this incentive program is to support the Klaytn ecosystem. If it is reported that the PoC KLAY rewards are misused in a way that is harmful to the ecosystem, the Klaytn Foundation reserves the right to halt rewards to the protocols in question and notify the Klaytn community of the fact.