KLAY is the native digital asset that fuels and secures the Klaytn protocol. Klaytn was launched with 10 billion KLAY issued at genesis, and there are currently 2.6 billion KLAY coins in circulation. With every new block, 9.6 KLAY will be minted and the newly issued KLAY and the sum of transaction fees used in the block (collectively called the “block reward”) will be aggregated and distributed to the following three destination accounts in accordance to the predetermined ratio: * Klaytn Governance Council Reward: 34% * Klaytn Growth Fund (KGF): 54% * Klaytn Improvement Reserve (KIR): 12%

Klaytn supports EVM as one of the emerging standards for the metaverse and Web3, and will be adopting the EVM specification by: * Making Klaytn’s technical stack equivalent to the Ethereum stack from an interfacing and execution perspective * Building on top of existing Ethereum clients and interfacing libraries to inherit any improvements made to their open-source codebases * Enabling Ethereum Improvement Proposals (EIPs) and Klaytn Improvement Proposals (KIPs) to contribute to both ecosystems

Through a combination of the initially issued reserve KLAY and on-chain tokenomics that re-invest 66% of newly-minted KLAY, Klaytn has set aside a total of $1 billion to support ecosystem growth. The funds are distributed across a range of grant and reward programs such as: * The Klaytn Improvement Reserve (KIR) for infrastructure, tools and services that improve the quality of the Klaytn network * The Klaytn Growth Fund (KGF) for early-stage projects with high potential for creating positive impact on Klaytn * The Proof of Contribution (PoC) program to reward builders of smart contracts that contribute to the growth on on-chain activities on Klaytn