# KSP TOKENOMICS

KSP is a reward given to ecosystem participants and serves as a strong incentive to secure more liquidity in the klay swap protocol. It provides meaningful liquidity-based transactions and more financial opportunities through token economy structures that enable efficient distribution and value maximization of limited KSP resources.‌​

### KSP mining quantity <a href="#ksp-1" id="ksp-1"></a>

‌

The total daily mining quantity of KSP is **43,200 KSP**, which is distributed excluding the developer commission for the first two years, and halving is applied every two years. Please refer to [KSP Allocation](/book-en/tokenomics/ksp/ksp-allocation.md) for detailed mining plans.‌

| ​**​Items**                | **Before halving**                     | **After halving** |
| -------------------------- | -------------------------------------- | ----------------- |
| Distribution by block      | 1 KSP                                  | **0.5 KSP**       |
| Developer commission (15%) | 0.15 KSP                               | **0 KSP**         |
| KSP mining per day​        | 86,400 KSP                             | **43,200 KSP**    |
| ​                          | \*\*\* Commission excluded: 73,440 KSP | **N/A**           |

​‌

### KSP inflation distribution ratio <a href="#ksp-2" id="ksp-2"></a>

‌‌

KSP inflation is distributed to the key contributors of the KLAYswap ecosystem: liquidity pool participants (single liquidity pool, V2 pool, V3 pool) and staking participants. You can check the KSP inflation distribution ratio at the link below, and the distribution ratio can be adjusted through governance voting.

> [**Check the KSP inflation distribution ratio**](https://klayswap.com/en/staking?request=status)

<figure><img src="/files/sK6GVcaIWp1BbLZFY9Ch" alt=""><figcaption></figcaption></figure>

‌

## &#x20;<a href="#ksp" id="ksp"></a>

## Value maximization through KSP deflation <a href="#ksp" id="ksp"></a>

The KLAYswap protocol has a flexible token economy structure that can maximize the value of KSP by controlling KSP distribution through a deflation model. This not only offers high level of APR for liquidity providers such as pool depositors and KSP stakers, but also builds a more robust and sustainable ecosystem where the scarcity value of KSP gradually increases as more users participate.‌

### The effect of reducing distribution through halving <a href="#undefined-1" id="undefined-1"></a>

The halving of each two-year cycle slows down KSP inflation by reducing the number of KSPs distributed per block. Please check for KSP Allocation for detailed inflation plans.

{% content-ref url="/pages/-MLH1Ow0KL72cyxzFkDv" %}
[KSP Allocation](/book-en/tokenomics/ksp/ksp-allocation.md)
{% endcontent-ref %}

### The effect of reducing distribution through Buyback & Burn <a href="#and" id="and"></a>

* KSP incineration using bi-back funds: 50% of transaction fees generated from all pools are raised as KSP buy-back funds and used for KSP incineration.&#x20;


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