Why does an DID need a deposit?
A DID requires a lot of storage power as a DID can hold many different keys and endpoints. All this data needs to be stored on the KILT blockchain for permanent accessibility. Using a formula based on these storage needs, the sum of around 2 KILT was calculated to meet this cost.
Rather than charging this as a fee, deposits are used instead to encourage users to delete DIDs they don’t need, and to deter spamming.