Table of Contents

1. Project Overview

2. 4Q24 Highlights

3. Major Updates and Partnerships
3-1. The Launch of the $KRO Token
3-2. Kroket: A reward app delivering a user-centric, mobile-friendly L2 environment
3-3. Securing strategic investments: Laying the foundation for network expansion and technological innovation

4. On-Chain Performance
4-1. Network Activity
4-2. Network Security
4-3. Development Activity

5. Closing Summary

1. Project Overview

Kroma is a rollup network utilizing the OP Stack and is part of Optimism’s Superchain initiative. Currently, it employs a hybrid structure that combines the Optimistic rollup model with zkEVM’s Fault Proof functionality. Kroma plans to transition into a fully ZK rollup by leveraging its proprietary ZK backend library, Tachyon. 

Kroma aims to build a Web3 ecosystem that is accessible to both developers and users by utilizing ZK technology and Account Abstraction (AA). The platform emphasizes a mobile-friendly design and gamification to make Web3 services easy and enjoyable to use. Additionally, Kroma offers low transaction fees, Ethereum Virtual Machine (EVM) compatibility, and high security through Zero-Knowledge Proofs (ZKP), enhancing the network’s reliability.

While gaming is Kroma’s primary focus, the platform also supports various Web3 applications such as DeFi and NFTs. Kroma simplifies onboarding for consumer-facing apps. After becoming independent from WEMIX’s subsidiary last year, Kroma successfully secured significant investments and is actively expanding its ecosystem. Following the Token Generation Event (TGE) for its native token, $KRO, Kroma is leveraging the Asian market and the Superchain initiative to position itself as a global Layer 2 solution.

2. 4Q24 Highlights

The Launch of the $KRO Token

• $KRO tokenomics and distribution plans
• Holded $KRO airdrop and launched Kroma Guardian House (KGH) staking

Delivering a User-Centric, Mobile-Friendly L2 Environment

• Launched Kroma’s all-in-one super reward app “Kroket”
• Formed a partnership with Marina Protocol
• Announced major upgrades for the transition to ZK rollup: moving from zkEVM to zkDerivation and zkVM

Securing Strategic Investments

• Received 500,000 $OP from Optimism Governance as part of the Superchain initiative
• Announced investments from ZKcandy and JB Investment

3. Major Updates and Partnerships

3-1. The Launch of the $KRO Token

$KRO tokenomics and distribution plans

In October 2024, Kroma’s long-awaited native token, $KRO, was officially launched through the Token Generation Event (TGE). Initially, Kroma adopted a Zero-Start model, issuing tokens in line with network growth and rewarding contributors through an ecosystem fund. However, due to challenges such as insufficient rewards for early participants and concerns about long-term sustainability, the tokenomics model was revamped in May 2024. Under the new plan, all tokens were minted at the TGE, with the airdrop allocation increased to 17% and the integration of the WEMIX Community Fund and Airdrop Fund to strengthen ecosystem support. The total supply was also expanded from 50 million to 1 billion tokens.

According to the finalized tokenomics, 43% of the total 1 billion $KRO tokens are allocated to the ecosystem fund (Security Contributor Fund: 5%, Community Impact Fund: 13%, Partner Fund: 7%, Utility Fund: 18%). These funds will support network development, security, and community participation programs. Additionally, 15% and 25% are allocated to the core team and investors, respectively, with vesting schedules ensuring gradual unlocking. The Community Impact Fund is set to transition into a DAO for more transparent operations.

$KRO tokens are used for validator staking, governance participation, and gas fee payments, driving network activity. While initially managed by the foundation, the long-term plan involves transitioning to a DAO to establish a community-driven ecosystem. To enhance trust and minimize volatility from early token releases, the core team’s vesting period has been extended by five months. For more insights, check out Xangle’s “Kroma TGE - Where Vision Meets Reality.”

Holded $KRO airdrop and launched Kroma Guardian House (KGH) staking

https://blog.kroma.network/the-upcoming-kro-airdrop-eligibility-and-criteria-explained-2247910379e4

Kroma’s community airdrop is designed to distribute 17% of the total $KRO supply to early ecosystem contributors and participants, aiming to drive network activation. The first airdrop, conducted during the Token Generation Event (TGE), allocated approximately 49,150,177.42 $KRO, equivalent to 5% of the total supply—a reduction from the initially planned 7%. This adjustment was made to mitigate the risk of rapid sell-offs by speculative participants. Eligible recipients included builders, users, and community members with mainnet transaction records demonstrating early contributions. Future airdrops are expected to be more strategically aligned with Kroma’s ecosystem goals and user onboarding efforts, ensuring broader and more impactful participation.

In conjunction with the airdrop, Kroma launched the Kroma Guardian House (KGH) staking service, enabling users to stake $KRO and KGH NFTs to earn rewards. Built on a Delegated Proof of Stake (DPoS) mechanism, KGH simplifies participation in network security and governance for general users. By staking tokens or NFTs, users can select validators and enhance network stability. Notably, KGH offers tangible benefits such as $KRO rewards for NFT holders, broadening the scope of network security contributions beyond professional validators. This initiative fosters a decentralized security model that strengthens the network while providing economic incentives for participants, benefiting both contributors and the ecosystem as a whole.

3-2. Kroket: A reward app delivering a user-centric, mobile-friendly L2 environment

Introducing Kroma’s all-in-one super reward app, “Kroket”

Kroma recently announced the launch of “Kroket,” an all-in-one super reward app designed to facilitate seamless Web3 onboarding for Web2 users through a mobile-friendly interface. Kroket rewards users with points for completing simple quizzes, mini-games, and engaging missions. These points can be exchanged for digital assets like $KRO and $OP, as well as real-world rewards such as coupons and vouchers. To drive initial user acquisition, Kroma leveraged a 500,000 $OP grant from Optimism Governance for Kroket’s reward events. A pre-registration campaign successfully attracted over 25,000 participants, highlighting strong interest and engagement.

The Kroket launch is a strategic move to expand the Kroma Rollup ecosystem. In the relatively small Web3 market, platforms with significant user bases are highly valued. A critical factor for dApps choosing a mainnet or rollup is the size of the ecosystem’s user base. To address this, the Kroma Foundation aims to establish Kroket as a successful reward app to attract users. Leveraging Korea’s proven reward service market, exemplified by apps like Cashwalk, Kroma initially focused Kroket domestically before planning its global expansion.

Kroket simplifies user onboarding with Kroma ID-based automatic wallet generation, allowing users to engage without prior knowledge of crypto wallets or gas fees. Simple KYC verification enables data-driven marketing and partnerships. While Kroket currently offers basic quizzes and missions, future plans include introducing gamified services like "Kropet," where users can nurture virtual pets for rewards, as well as interactive content and educational resources to sustain user engagement. Starting with Korea’s established Web2 reward app market, which boasts over 10 million users, Kroma aims to expand globally.

Partnership with Marina Protocol

Kroma announced a partnership with Marina Protocol, a Learn&Earn-based Web2 reward platform. Starting with Kroket’s pre-registration campaign, the collaboration will extend to ongoing user reward events post-launch. This campaign offers a total of 40,000 $OP and 1,000 USDT in rewards, promoting user engagement with Kroma’s ecosystem and strengthening community activity. As user acquisition remains a core challenge, Kroma plans to expand its collaboration with Marina Protocol to further boost Kroket’s user base.

Major upgrades for transition to ZK rollups: From zkEVM to zkDerivation and zkVM

Kroma is advancing its ZK rollup technology by addressing the maintenance complexity and technical limitations of existing zkEVM solutions. Utilizing its open-source zk-SNARK library, Tachyon, Kroma is developing an enhanced ZK Fault Proof system. Written in C++ and GPU-compatible, Tachyon significantly reduces proof generation time and optimizes cost efficiency. Recent integrations, such as ICICLE technology, have achieved 8–10x faster computations for MSM and FFT operations on GPUs, offering over fourfold performance improvements compared to CPU-based methods.

To strengthen its ZK Fault Proof System and accelerate the transition to ZK Rollups, Kroma is preparing two major updates: a shift from zkEVM to zkDerivation and zkVM. These upgrades aim to enhance security, simplify auditing processes, and deliver high efficiency at lower costs compared to Optimism’s Fault Dispute Game. By reducing the maintenance burden of EVM updates and verifying the accuracy of sequencer-published data, these updates will improve the network’s reliability and security. This technical advancement positions Kroma to build a universal zkVM environment suitable for diverse Web3 use cases.

The first update, transitioning from zkEVM to zkDerivation, adds a layer of verification by ensuring transactions are correctly submitted by the sequencer, in addition to verifying transaction execution. This strengthens data integrity and establishes a foundation for securely validating L2 block validity on-chain. By encrypting transaction sources and data within a chain, Kroma achieves greater trustworthiness.

The second update involves moving from the Halo2-based zkEVM to the SP1 zkVM. While Halo2 required designing complex custom circuits, SP1 zkVM executes programs written in standard programming languages and generates ZK proofs based on them. This simplifies circuit design and verification processes, accelerating development and reducing audit costs. Already providing stable network verification services, SP1 zkVM is expected to elevate Kroma’s technical capabilities significantly. Although these updates represent a leap in Kroma’s ZK technology, resource allocation to the Kroket app launch and activation may slightly delay progress on ZK initiatives.

3-3. Securing strategic investments: Laying the foundation for network expansion and technological innovation

Superchain initiative: Received a 500K $OP grant from Optimism Governance

Kroma utilizes the open-source standard codebase of the Optimism Superchain (OP Stack) to strengthen interoperability with other Layer 2 networks by sharing security and communication layers. Its innovative contributions, such as the Permissionless ZK Fault Proof System and Native Account Abstraction technology, have been recognized through funding in Retro Funding Round 5. These achievements not only validate Kroma's technological prowess and vision but also highlight its role in expanding the Optimism ecosystem—traditionally centered on North America—into global markets. This underscores Kroma’s position as a key partner in the Asian market.

https://x.com/kroma_network/status/1852232079649706356

In addition, Kroma recently secured a grant of 500,000 $OP during Optimism Governance Cycle 29, further cementing its position within the Superchain initiative. The grant will be allocated to operating Kroket, Kroma’s platform that supports both the Kroma and Optimism networks. Through Kroket, Kroma plans to launch various campaigns across the Optimism and Superchain ecosystems, playing a pivotal role in expanding the Optimism community in Korea and the broader Asian market.

Announced investments from ZKcandy and JB Investment

Kroma has successfully attracted strategic investment from ZKcandy, a collaborative project between Southeast Asia’s largest game developer, iCandy Interactive, and Ethereum Layer 2 solution ZKsync. ZKcandy, leveraging iCandy Interactive’s extensive experience with over 650 employees and more than 400 developed mobile games, and ZKsync’s technological expertise, has achieved notable success, registering over 2.5 million wallets early on. This partnership offers Kroma a significant opportunity to expand its presence, partnerships, and technological capabilities in the Asian market.

Moreover, JB Investment, the venture capital arm of JB Financial Group—established by Jeonbuk Bank—has also announced a strategic investment in Kroma. With a diverse portfolio that includes digital asset B2B solution Wavebridge, Web3 metaverse game Carrieverse, and blockchain-based membership solution Vircle, JB Investment recognizes Kroma’s potential for driving Web3 innovation. The partnership aims to accelerate ecosystem growth by exploring blockchain financial products, including RWA (Real World Asset) and DeFi, as well as expanding NFT-based retail services. However, considering the current conditions of the domestic financial market, these initiatives are expected to unfold as part of a long-term roadmap.

4. On-Chain Performance

Despite a temporary decline in the active address count following the airdrop, the total number of accounts has already surpassed 2 million. This demonstrates a steady influx of new users into the network ecosystem. Notably, with the streamlined registration process enabled by Kroma ID(AA) functionality via Kroket, the number of Kroma accounts is expected to grow further in the near future.

The new transaction count showed a downward trend for a period following the airdrop. However, interactive applications like Kroket have the potential to encourage active user participation and stimulate activity within the Kroma ecosystem. It will be crucial to monitor future data to assess the success of these applications in reversing the trend.

Following the airdrop, the token’s price remained relatively stable throughout Q4, avoiding significant declines. Although the initial post-TGE price disappointed some community members, efforts by the core team to extend the vesting schedule by five months—thereby lengthening the lock-up period—along with the broader bullish momentum in major crypto markets such as Bitcoin and Ethereum, contributed positively. In a market where airdrop-induced price drops often dampen ecosystem participation, Kroma’s price recovery is a noteworthy development, signaling a degree of resilience.

5. Closing Summary

Overall, Kroma achieved two major milestones in Q4 2024: the token’s TGE and first airdrop event, and the launch of its rewards platform, Kroket. While some on-chain metrics experienced a slight dip in activity following the TGE, the rebound in token price is a positive outcome. More importantly, Kroma demonstrated agility by quickly introducing products designed to drive user onboarding and increase on-chain engagement. With its foundation in ZK and AA technologies, Kroma continues to stand out within the Optimism Superchain ecosystem. Its efforts to establish itself as a key player in the Asian market reflect its commitment to driving mass adoption and earning the trust of its community.