Why does an on-chain DID need a deposit?
An on-chain DID requires a lot of storage power as a DID can hold many different keys and endpoints in order to facilitate its functions. 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 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.