KILT launched in September 2021 with three main uses for the KILT Coin – on-chain functions, payment, and staking. Further utilities will be added as the network matures. A summary is given below; for more details see the Token Economy paper here.
- KILT Coins can be locked for voting in on-chain governance. Locking KILT for longer periods enables conviction voting and increases voting power
- Transaction fees are needed for anchoring credentials, DIDs, CTypes, and trust hierarchies on the KILT blockchain
- Deposits encourage users to delete DIDs they no longer need, removing unnecessary data and defending against spamming
- Claimers can pay Attesters for digital revocable credentials
- Attesters pay transaction fees to anchor credentials on the KILT blockchain
- Rewards facilitate chain maintenance by incentivizing collators, who hold the data of the KILT blockchain, collect transactions and build blocks
- Rewards incentivize delegators to back reliable collators with their stake, increasing trust in the system
In the third year of the network (measured in block time), it is anticipated that other KILT functions will be in place that will provide new utilities for KILT Coins.