Token Allocation

Kroma allocates 43% of the total KRO supply to the Ecosystem Fund, which supports various stages of development, marketing, security, community engagement, and ecosystem building. Additional allocations are made to the Community Airdrop, Core Team and Investors.

The figure below shows the overall allocation of KRO tokens:

Allocation	%	Description
Ecosystem Fund	43%	The Ecosystem Fund is a proactive program meant to accelerate development and growth. The fund will provide grants to projects in all stages and utilize funds for marketing purposes.
Community Airdrop	17%	Reward users and dApps for contributing ecosystem growth.
Core Team	15%	The core team who’ve been working tirelessly to bring Kroma Network to the masses.
Investors	25%	Initial financial and strategic investors that help the ecosystem grow faster at the initial stage.

Ecosystem Fund

The Ecosystem Fund is designed to foster development and growth within the Kroma Network. 43% of the total KRO supply is allocated to the Ecosystem Fund. Kroma will use this allocation to support projects at various stages and to fund marketing initiatives. This fund is divided into four main categories:

1. Security Contributor Fund (5%)

2. Community Impact Fund (13%)

3. Partner Fund (7%)

4. Utility Fund (18%)

Security Contributor Fund

An allocation of 5% will be dedicated to the Security Contributor Fund. Kroma will use these funds to incentivize the entities that help secure the chain. Activities that secure the chain include but are not limited to submitting checkpoint outputs, mediating disputes for asserters and challengers, and submitting validity proofs in the ZKR phase.

The Security Council plays a crucial role in Kroma’s upgrades and addressing any potential issues that may arise in dispute challenges, determining them through multi-signature agreements. Rewards for Security Council are also included in the Security Contributor Fund.

Community Impact Fund

The Community Impact Fund will be utilized to provide grants to early-stage dApps, with decisions made through the votes of KRO Stakers. Community Impact Fund represents a dynamic and transparent mechanism within Kroma, fostering innovation and growth. Through a carefully orchestrated cycle of selection, incentivization, voting, and reflection, Kroma will empower early-stage dApps by providing them with the necessary grants and support. By involving KRO Stakers in the decision-making process and maintaining a clear and accountable structure, the Community Impact Fund ensures that the Kroma ecosystem thrives, guided by the collective wisdom and investment of its community. Also, as long as a dApps follows procedures, it can be selected for grants consecutively, with no maximum limit.

Partner Fund

The Partner Fund is allocated for partnerships with Large-Scale dApps, referring to projects that have already found product market fit and are looking to expand to Kroma Network. Unlike the Community Impact Fund, the selection of dApps for the Partner Fund is made directly by the foundation without undergoing a separate community voting process. Moreover, the term of the grant is subject to a vesting period that includes cliffs. This structure ensures a committed partnership and aligns the interests of both parties over a longer term.

Utility Fund

The Utility Fund is dedicated to building the Kroma ecosystem, utilizing the necessary resources for Marketing, Bug Bounty, Liquidity Provisioning, and other essential functions. All utilized resources will be transparently disclosed, reflecting the commitment to openness and accountability of the foundation to the Kroma community.

Community Airdrop

An allocation of 17% of the total KRO supply will be dedicated to the community. Due to the nature of airdrops, the Kroma core team, in collaboration with professional third parties, will be responsible for determining airdrop metrics as fairly as possible.

The first Airdrop, which will take place at the Token Generation Event (TGE), will distribute around 5% of the total supply. The airdrop will target addresses that have:

• Actively contributed as a builder

• Actively contributed as an user

• Actively contributed as a community member

All transactions generated from the mainnet, including those generated before the TGE, will be considered.