Table of Contents

1. Project Overview

2. TGE: Introducing Kroma’s $KRO Token

3. 3Q24 Highlights
3-1. Accelerating global expansion following separation from WEMADE
3-2. Successful Series A funding round with ICC Ventures, Presto, Spartan, and more
3-3. Building a developer- and user-friendly Web3 environment with ZK and AA technology
3-4. Expanding beyond gaming into the consumer sector with gamified experiences and reward systems 
3-5. Key On-Chain Performance in 3Q24

4. Closing Thoughts: Kroma's Vision for Mass Adoption as a Versatile Layer 2 Solution

1. Project Overview

Kroma is an Ethereum Layer 2 solution within the Superchain, a rollup network that utilizes the OP Stack. It currently features a hybrid structure that combines zkEVM’s Active Fault Proof capability with an Optimistic Rollup framework. Looking ahead, Kroma plans to transition fully to a ZK Rollup by integrating Tachyon, its proprietary ZK backend library. Kroma’s goal is to accelerate Web3 adoption through ZK technology and account abstraction (AA), creating a developer- and user-friendly experience. Its platform also emphasizes seamless onboarding via mobile-optimized and gamified Web3 interactions. Kroma offers low fees and EVM compatibility, enhancing network reliability with Zero-Knowledge Proofs (ZKP) for high security.

While primarily targeting the gaming sector, Kroma supports a range of Web3 applications, including DeFi and NFTs, and facilitates the onboarding of consumer apps. Initially focused on the Asian market, Kroma is now actively pursuing global ecosystem expansion. Originally launched as a subsidiary of WEMADE (WEMIX), Kroma has since separated from the company and secured significant investment. With the upcoming Token Generation Event (TGE) of its native token, $KRO, there is growing market anticipation.

2. TGE: Introducing Kroma’s $KRO Token

The much-anticipated TGE (Token Generation Event) for Kroma's $KRO tokenomics has finally been announced, eagerly awaited by many ecosystem participants. Kroma’s tokenomics is focused on ecosystem expansion, with various modifications and developments introduced over time to promote network growth and community participation. By incorporating community feedback and contributor input, Kroma adjusted the TGE schedule and reorganized the token distribution and utility structure.

In September 2023, Kroma introduced the "Zero-Start" model as its first tokenomics approach, linking $KRO issuance to network growth and designing a structure that rewards contributors through an ecosystem fund. However, this model raised concerns about long-term sustainability due to its small maximum supply and a structure that decreases issuance over time, making it difficult to adequately reward early participants. In May 2024, Kroma responded by abolishing the Zero-Start model and issuing the entire supply at the time of TGE. Additionally, the community airdrop allocation was increased to 17% to provide more direct rewards to the community and contributors, with a transparent fund structure. This approach, which secured the necessary resources upfront rather than issuing them gradually, reflects a strategic decision to support ecosystem building and user acquisition, given that this is Kroma's initial network launch. In the final revision in June 2024, Kroma expanded the total $KRO supply from 50 million to 1 billion, consolidating the WEMIX Community Fund and Airdrop Fund to allocate these resources specifically for ecosystem support.

Kroma has established a plan for token allocation by issuing a total supply of 1 billion $KRO tokens to support ecosystem growth. The largest portion, 43%, is allocated to the Ecosystem Fund, which will support various programs for network development, security, and community engagement. The Ecosystem Fund is further divided into the Security Contributor Fund (5%), Community Impact Fund (13%), Partner Fund (7%), and Utility Fund (18%) to sustain the ecosystem. Beyond the Ecosystem Fund, 15% is allocated to the core team, and 25% to investors, both with a vesting schedule. In the future, the Community Impact Fund is expected to be managed more transparently under a DAO structure.

Kroma’s community airdrop allocates 17% of the total $KRO supply to reward and activate early contributors and participants. This first airdrop will take place at the TGE, with approximately 5% of the total supply, or 49,150,177.42 $KRO, being distributed. The allocation has been lowered from the previously announced 7%, likely as a conservative measure to mitigate early "airdrop hunters" exiting after receiving tokens. This airdrop is based on Kroma’s first mainnet snapshot (September 30, 2023) and KCU contributor snapshot (October 22, 2024), including addresses actively participating as builders, users, and community contributors based on mainnet transaction records. This initiative aims to provide rewards to users who contributed early in the network and to encourage community growth. Further details on the first airdrop are available here. Future airdrops will align with Kroma’s ecosystem direction and are expected to be systematically conducted to support the effective onboarding of new users.

The $KRO token is primarily designed to activate and grow the Kroma Network ecosystem, with additional use cases in governance participation, validator staking, and gas fee payments. In the early stages, the foundation is expected to play a leading role; however, Kroma plans to gradually shift towards community-driven ecosystem management by introducing a DAO next year.

By reflecting community feedback, Kroma has established a favorable structure for initial bootstrapping by ensuring sufficient rewards for ecosystem contributors. In particular, the integration of the WEMIX Community Fund and Airdrop Fund, as well as the increased airdrop ratio, aims to provide direct rewards to early users and developers, maximizing community engagement and participation. The airdrop is designed as a quest within the Kroma ecosystem, allowing participants to experience rewards and enjoyment through real engagement. This approach is considered well-suited for the current market environment, where infrastructure development is advancing faster than killer dApps are emerging.

While this strategy could accelerate user and application onboarding by securing initial liquidity, there may be short-term selling pressure due to the substantial early-stage allocation. For Layer 2 tokens, the value often depends on ecosystem activation and the establishment of practical use cases. Kroma will need to leverage this token structure to develop diverse use cases, sustain community engagement, and achieve long-term ecosystem growth while stabilizing token value.

3. 3Q24 Highlights

3-1. Accelerating global expansion following separation from WEMADE

WEMADE acquired Lightscale in 2022 to launch the Ethereum Layer 2 blockchain, Kroma, signaling a major expansion in its blockchain initiatives. In July, however, WEMADE strategically shifted by selling a portion of its stake in Lightscale Holdings, relinquishing its status as the largest shareholder. This move was likely intended to minimize legal risks associated with Kroma's planned token issuance. While WEMADE is no longer the largest shareholder and has sold part of its stake, it has retained a portion of its shares, maintaining a collaborative relationship with Kroma, which primarily targets the Asian and gaming markets.

Kroma was designed from the outset as an independent project from WEMADE's WEMIX, and this share restructuring does not appear to significantly impact Kroma's direction or tokenomics. Lightscale remains focused on Kroma’s mainnet development and ecosystem growth, with a particular emphasis on advancing ZK technology and user-friendly features. Kroma plans to launch its native token, $KRO, through a Token Generation Event (TGE) on October 30, accompanied by an initial airdrop. Lightscale recently announced on its official blog that "The independence from WEMADE has enabled founders and management to attract diverse shareholders and partners, accelerating global business expansion." Kroma is gearing up for accelerated, independent growth within the global blockchain ecosystem, aiming for a significant breakthrough beyond the Korean market.

3-2. Successful Series A funding round with ICC Ventures, Presto, Spartan, and more

Source: Kroma

In September, Kroma announced the successful completion of a Series A funding round with participation from various global investors, including ICC Ventures, Presto Labs, Spartan Group, and Planetarium. This round is expected to have included WEMADE’s share divestment. Kroma’s consistent technical achievements and business direction in the Web3 gaming industry since its time as a WEMADE subsidiary, along with its potential to drive global expansion as a versatile Layer 2 solution based in the Asian market, appear to have been key factors for investors. Through this funding, Kroma has secured the resources needed to strengthen its technical capabilities and expand its global ecosystem. Going forward, Kroma plans to focus on improving the performance of its ZK-based chain, onboarding consumer apps, enhancing user experience through account abstraction, and developing mobile technologies. Market concerns had arisen regarding Kroma’s financial strength following WEMADE's rumored share divestment, but this successful funding is expected to alleviate those doubts, laying the foundation for Kroma’s growth as a global project.

3-3. Building a developer- and user-friendly Web3 environment with ZK and AA technology

Kroma’s zero-knowledge (ZK) technology

Kroma recently announced through its official Medium channel that it has joined the Optimism Superchain, accelerating its efforts to create a developer- and user-friendly Web3 environment. The Superchain is a network of Layer 2 (L2) chains built on Optimism’s open-source OP Stack. Through this integration, Kroma can leverage a range of open-source technology stacks, including security and communication layers, enabling smooth interaction with other L2 chains in the Superchain. This is expected to enhance Kroma’s ecosystem by facilitating easy asset and user transfers across networks, supporting ecosystem expansion. Notably, Kroma's contributions to the Permissionless ZK Fault Proof System and Native Account Abstraction on the OP Stack were recognized with funding from Optimism’s Retro Funding Round 5.

To address the complexity and limitations of maintaining zkEVM circuits, Kroma is focused on developing an advanced ZK Fault Proof system based on zkVM. Transitioning to zkVM removes the need for circuit maintenance that zkEVM requires due to EVM updates, allowing Kroma to process transactions based on batch data posted by the sequencer, which enhances security and reliability. As part of this transition, Kroma is leveraging its in-house Tachyon library to replace the zkTrie structure based on zkEVM with a complete ZK rollup system that combines zkVM with Tachyon.

The Tachyon library is a universal zk-SNARK open-source library developed by Kroma. Written in C++ and GPU-compatible, it dramatically reduces proof generation times and improves cost efficiency. Designed to facilitate the easy implementation of various proof systems, Tachyon serves as the core backend supporting Kroma’s shift to zkVM. Recently, Kroma integrated ICICLE technology into Tachyon, boosting MSM and FFT operations on GPUs by up to 8–10 times and delivering over four times the performance of CPU-based systems. This enhancement will further improve the efficiency and scalability of ZK proof generation, enabling Kroma to refine its Fault Proof system and build a versatile zkVM environment for diverse Web3 use cases.

Account Abstraction for improved user experience

Native Account Abstraction (Native AA) is an AA technology designed to embed entry points directly within the protocol, removing the need for smart contracts. Unlike ERC-4337-based AA, which relies on off-chain components, Native AA is integrated within the protocol itself, providing a more cost-effective and streamlined implementation. This approach enables users to engage with Web3 in familiar ways, such as paying gas fees via a Paymaster or using social logins, enhancing accessibility across the ecosystem. Kroma plans to optimize and deploy this Native AA technology specifically within the OP Stack and Superchain environments.

In July 2024, Kroma introduced ‘Pioneer Alpha’, a public developer Devnet aimed at testing and refining Native AA functionalities. Pioneer Alpha integrates standards such as RIP-7560, RIP-7711, and RIP-7712, providing developers with an environment to assess Native AA's efficiency. Early tests on Pioneer Alpha have demonstrated gas cost savings and improved user experience, which are expected to support Kroma's full protocol integration. This open-source network allows participants to provide feedback, thereby contributing to performance improvements across the Superchain and OP Stack.

Kroma is also leveraging Native AA to establish user-friendly smart wallets and mobile apps. Products like Kroma ID (smart wallet) and the KCU Mobile App (Kroket) integrate Native AA's low gas costs and simplified account management, allowing Web2 users to onboard without incurring additional gas fees. Through this approach, Kroma aims to facilitate a smooth transition from Web2 to Web3, focusing on a mobile experience that encourages a wider user base to engage with the ecosystem.

3-4. Expanding beyond gaming into the consumer sector with gamified experiences and reward systems

Kroma aims to build a blockchain network accessible to everyday users, distinguishing itself from other Layer 2 solutions and mainnets that primarily target crypto natives or “degens.” With this goal in mind, Kroma is starting with easy-to-access games and expanding into reward-based consumer services. As of 2024, the Kroma network hosts 117 projects, including 42 games. Among them, Masala Express—which has surpassed 10 million downloads on Google Play—has gained notable popularity. Additionally, large-scale games like Night Crows, the hit title from WEMIX, are part of Kroma's pipeline, accelerating the network’s journey toward mass adoption.

To facilitate seamless user onboarding, Kroma is running the Kroma Creative Universe (KCU) campaign. This gamified initiative allows users to set up on-chain profiles, equip rare items, and earn high scores to unlock future rewards. This campaign reflects Kroma’s philosophy that fun and engagement are essential to attracting users. Furthermore, Kroma’s Guardian House (KGH) introduces a unique way for users to participate in network security and governance. By holding NFTs, users can select validators and stake their NFTs to enhance the network’s stability. In return, NFT holders are rewarded with $KRO tokens. This structure decentralizes network security, previously restricted to professional validators, by enabling users to invest capital (through NFT purchases) and receive rewards ($KRO) in return. Through KGH, Kroma hopes to pursue decentralization with meaningful user participation.

Additionally, Kroma plans to develop its mobile products using Account Abstraction (AA) technology, making it easier for Web2 users to engage naturally with Web3 services. Kroma’s broad portfolio of business and technology partnerships will further support the ecosystem’s growth, and the team intends to leverage a grant program to onboard promising projects and developers. While many advisory or grant programs in the industry have been criticized for short-term outcomes, the Kroma team is aware of these challenges and is committed to building sustainable services. Kroma’s ultimate goal is to drive blockchain adoption by bridging Web2 and Web3, targeting not just Web3 enthusiasts but the broader mainstream audience. The project aspires to create a turning point in the mass adoption of blockchain technology.

3-5. Key On-Chain Performance in 3Q24

In Q3, Kroma achieved an all-time high in daily transactions, continuing its strong growth. Specifically, on September 13, the network recorded over 1.13 million transactions, showing a marked increase in network activity. This growth is attributed to ecosystem campaigns, such as Kroma Creative Universe (KCU) quests, and anticipation around airdrops, which are believed to have encouraged user participation and contributed to the increase in transaction volume.

There was also a significant rise in the average number of daily active addresses, reflecting an expansion in user engagement. In particular, the daily average of active addresses in Q3 grew approximately 93 times compared to Q2, and the cumulative wallet count increased by 709.33%, highlighting robust growth. This suggests that airdrops and various ecosystem campaigns served as economic incentives, positively impacting user onboarding.

While Kroma's ecosystem showed explosive growth in daily transactions and active wallet numbers, much of this increase can be attributed to quest programs driven by airdrop anticipation. For sustainable growth and user retention, it will be necessary to develop services that encourage continuous network participation beyond airdrops, create a sustainable incentive structure, and establish a long-term ecosystem strategy to enhance the user experience.

4. Closing Thoughts: Kroma's Vision for Mass Adoption as a Versatile Layer 2 Solution

Kroma aims to be a general-purpose Layer 2 solution that is easily accessible for both users and developers. By leveraging ZK and AA technologies, Kroma seeks to lower entry barriers to the Web3 space and achieve mass adoption. The strategy of offering enjoyable and rewarding experiences through gamified activities and a reward system is noteworthy, as it enhances Web3 accessibility and drives a range of on-chain activities. Programs like Kroma Creative Universe (KCU) and the Kroma Guardian House (KGH) NFT staking have allowed users with limited on-chain experience to join the Web3 ecosystem naturally, driving rapid growth in transaction and wallet numbers and significantly boosting network engagement and community contribution.

Kroma’s tokenomics design encourages sustained participation in the ecosystem, focusing on achieving mass adoption. The $KRO token, launched through TGE, is expected to play a key role by providing long-term and sustainable rewards for ecosystem participants while strengthening network liquidity. Following its recent separation from Wemade, Kroma is pursuing partnerships for global expansion beyond Asia and has joined the OP Stack Superchain ecosystem to enhance liquidity among users and capital within the rollup ecosystem.

Rather than relying solely on short-term events or partnership effects, it will be crucial to build a sustainable ecosystem by providing mobile-friendly environments, such as smart wallets, and by establishing an incentive structure that fosters active user participation. Many chains have lost momentum after TGE and airdrops, and Kroma must address these challenges to avoid similar issues. It remains to be seen whether these strategies will enable Kroma to achieve global mass adoption and establish itself as a competitive Layer 2 platform in the blockchain ecosystem.