🔮Governance & Tokenomics
A protocol governed through its native token.
KyotoSwap governance token introduction
Decentralised Exchanges have rapidly grown in popularity in a very short amount of time and are having to adapt rapidly to changes in regulation as well as avoiding centralisation risks through the ownership and management of the platform's smart contracts and treasury.
The Kyotoswap (KSWAP) Token is a tool used for the decentralisation of the protocol in order to become more autonomous and adaptable protocol. Initially, the development of utility is centralised to two entities KyotoLabs and the KyotoFoundation. This period of incubation is also publicly accessible and democratised by the KSWAP token in its Initial farm offering on the binance smart chain.
Initially starting its journey as a rewards token to liquidity providers building a treasury, the $KSWAP token will evolve into a fully fledged governance token with an overarching DAO comprised of the largest community stakeholders. The DAO and community utilising the treasury in order to grow value to the protocol, thus increasing the value to KSWAP. Token holders can already submit proposals to the community, Kyoto foundation and Kyotolabs.
Token emissions
The KSWAP token is emitted to liquidity providers, token stakers and the treasury dynamically based on the amount of liquidity provided. Due to this, the inflation of supply is handled through the protocol fees generated by the liquidity provided. Protocol fees are taken in different cryptocurrencies that make up the treasury. The treasury is then used to build value and support the KSWAP token.
The token emissions will never exceed the KSWAP maximum supply of 750,000,000 tokens.
Emission Rate example
Per block
Metric | Emission/block (KSWAP) | Emission/day (KSWAP) |
Emission | 40 (MAX) | 1,152,000 |
Burned | -28.8472 | -830,800 |
Effective Emission | <11.1528* | 321,200* |
The above figures are an example of emissions and will not represent emissions going into the unlocked supply of KSWAP; actual emissions are lower. This is due to the unique rewards mechanism built by KyotoLabs that adjusts rewards to the principal amount and not pool weight. This is beneficial for KSWAP holders as it means the amount of KSWAP unlocking is less and the tokenomic supply remains balanced.
Emission Supply Runway & Initial supply
The initial supply of KSWAP tokens estimated to be migrated from BSC to Kyoto mainnet is expected to be less than 3% of the total supply. KyotoSwap is currently live on the Binance Smart Chain and started its initial IFO in 2023 with farms currently live, earning liquidity providers fees. This leaves 97% of the 750,000,000 total supply to be allocated to build the protocol over a significant period of time in order to attract liquidity and to generate a treasury.
DAO & Deflation
The endpoint for any decentralised protocol is autonomy, utility and value creation for token holders and contributors. KyotoSwap is no different. As KyotoLabs and the Kyoto Foundation continue to build utility through product development, the protocol will progressively decentralise with the introduction of the KyotoSwap DAO.
The DAO will become the brain of the KSWAP treasury and allow KSWAP token holders to vote whilst being able to manage the treasury more effectively to continue to build value and revenues for the KyotoSwap platform. The KSWAP treasury will not focus primarily on removing token supply in the initial distribution phase, but rather keep it balanced by voting on farm emissions. In the initial growth phase, the treasury will keep its governance level in the protocol as high as possible to retain future value for the protocol.
Official Token Links
KSWAP Token Contract address (bsc) - https://bscscan.com/address/0x29ABc4D03D133D8Fd1F1C54318428353CE08727E
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🐦 Twitter - https://twitter.com/KyotoSwap
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