Token Utilities

KRO tokens are designed with three key utilities to grow and activate the Kroma's game-centric ecosystem:

• Participation in governance

• Validator staking

• Payment of gas fees

Participation in Governance

The initial operation of the Kroma Network is managed by the Kroma Foundation. Due to the nature of Layer 2, the network is initially operated in a centralized manner to manage the sequencer and rapidly upgrade the protocol. However, governance is being designed to incorporate the opinions of KRO holders in various areas, including sequencer operation, protocol upgrades, and the management of the community impact fund. In the future, KRO holders will have the opportunity to directly participate in the management of the community impact fund and enjoy additional rewards generated from it. A separate section on governance will cover this topic in more detail.

Validator Staking

Kroma is the first Layer 2 network to have a permissionless validator network. Currently, validators stake ETH and receive rewards in ETH for their validation work, but after the TGE, all rewards will be replaced with KRO. Additionally, regular users who cannot operate validators can stake their KRO with trusted validators, thereby enhancing network security and earning additional rewards.

Payment of Gas Fees

Currently, Kroma only accepts ETH as transaction fees. However, KRO tokens will also be accepted as transaction fees with a future protocol upgrade.