Klever network uses a dual-token system, KLV is the main utility token of KleverChain, while KFI is the blockchain’s
governance token. KLV is used to carry out the key functions on the platform:

Token Utilities:

Staking: Users can lock up KLV to contribute to the security of the Klever Network and earn staking rewards.

Gas token: Each transaction processed by the network requires a small fee to be paid. Please note that there are different types of fees on for different actions on the network, you can review the details here.

The Klever Blockchain uses a consensus mechanism that combines Proof of Stake (PoS), Masternodes, and Practical Byzantine Fault Tolerance (PBFT). PBFT is a consensus algorithm designed to withstand system failures, including situations where network components may fail and display arbitrary behaviors (Byzantine faults). The protocol consists of three phases:

1. Pre-Prepare: The primary node verifies the requests and generates pre-prepare messages. These messages are then broadcast to all Replica nodes. On receiving the messages, the Replica nodes verify their legitimacy and broadcast a corresponding prepare message.
2. Prepare: During this phase, nodes gather prepare messages. Once a node collects 2f+1 prepare messages (where ‘f’ is the maximum number of faulty nodes the system can tolerate), it announces its readiness for block submission and starts to broadcast commit messages.
3. Commit: Nodes gather commit messages. After a node collects 2f+1 commit messages, it processes the cached requests and makes corresponding changes to the system state.

By combining these mechanisms, the Klever Blockchain aims to create a decentralized, secure, and efficient network. The PoS and Masternode mechanisms ensure that validators have a vested interest in the network’s integrity, while PBFT provides a robust method for achieving consensus even in the face of potential faults or malicious activity.

To earn a yield on your KLV, you can either lend them out to custodial providers, run your own validator or delegate your tokens to validators of your choice. 

To stake your tokens, you should ensure you have your KLV on your Klever app and then follow the steps below:

Step 1: Open the Klever app

Step 2: Press the ‘Staking’ button on the home screen

Step 3: Select KLV and choose the wallet you want to stake from

Step 4: Press the purple staking button, enter the amount of KLV you want to stake and click ‘Confirm‘

Please note that once you have staked your tokens, they will now go into a ‘Bucket’. You still need delegate it to a specific validator from this point onwards. Please follow the steps below to do that:

Step 1: Open the Klever app and press the ‘Staking’ button on the home screen

Step 2: Choose the wallet you are staking from and scroll to the bottom of the page and click ‘Manage Buckets’

Step 3: Select the bucket you want to delegate to a validator

Step 4: Select the validator you would like to stake with

Once you have staked your KLV, there are a few things you need to consider going forward:

• Firstly, once you have staked KLV you still need to delegate it to a specific validator. Your staked KLV will be in something called ‘Buckets’, from the same page that you staked from you will now need to choose a validator.
• To ensure that you are getting the best return on your staked assets, you should periodically review your validator’s performance and commission rate. If you notice that your validator has raised their commission or has been jailed for misbehaviour on the chain, you may want to consider switching to a different validator. Regularly checking in on your validator can ensure that they provide good performance and reasonable commissions.
• Secondly, staking rewards are not automatically compounded. To maximize your rewards on Klever, it is recommended to claim and stake your rewards frequently. However, it is important to note that each transaction will incur gas fees, so you should optimize your strategy accordingly. By using our Klever staking calculator, you can calculate the optimal re-stake frequency to help you maximize your rewards and optimize your strategy based on the amount of KLV you have staked.

Klever network has a maximum supply of 10 billion tokens. 1,489,657,057 KLV was burnt, reducing the maximum supply to 8,510,342,943 KLV.

Initial Distribution Breakdown:
The initial distribution of KLV tokens is as follows:

• 34.5% is allocated to the initial supply
• 5.2% is allocated to legal services
• 14.4% is allocated to product development
• 14.4% is allocated to marketing
• 17.20% is allocated to the foundation
• 14.42% is allocated to the team

The Staking Rewards for KLV are generated by:

• Block Confirmation Rewards and Transaction Fees: Masternodes earn block confirmation rewards when transactions are confirmed by their blockchain nodes. The block reward flowback is set initially to 50% of fee paid by users. The additional 50% of fees will be burned to control inflation and maintain a healthy network interoperability. An additional amount of 15 KLV will be added to the block rewards. Both the fees and the block rewards will be distributed proportionally to the staked amount of each wallet. All staked amounts bound to masternodes (eligible or not) will participate in a rewards pool of 500,000 KLV daily, proportional to the staked amount of each wallet.

Please note that the total annual rewards are divided by all active stakers; hence, as the amount of staked tokens goes up, the reward rate goes down.