Tokenomics
KLEX Tokenomics
KLEX has a maximum total supply of 1,000,000,000 (1 billion) tokens.
However, if the burn and redeem mechanism is to be voted in by the community, the maximum total supply will likely be significantly less than that.
The breakdown of the token distribution is as follows:
All token rewards for LPs and Pool 2 on KLEX are subject to 6 week vest. Each week, 1/6 of those rewards unlock. This is the same for those that participated in pre-mining / lockdrop, unless otherwise noted.
25% given out as rewards for LPs
This will be released via a geometric decay function. The first "epoch" of 2 weeks will release 2.5% of the total supply. Each epoch, the emission will decrease by 10%.
10% to Pool 2 (KLEX/KLAY)
Geometric decay function. First epoch 1%, each epoch decreases emissions by 10%.
15% to Ve stakers
Released based on lock time and supply being locked. Formulas below.
5% for Early Incentives
Early Incentives include rewards for pre-mining and potentially a lockdrop to distribute the KLEX token at launch.
9% Treasury
Controlled by the protocol DAO in the future - initially, some of the treasury KLEX will be used for protocol owned KLEX/KLAY liquidity to seed the pool.
1% Community
Token rewards for early community members and small events to reward loyal Klex users
10% Krust/Klaytn - 6 month cliff, 24 months linear unlock
The protocol will receive KLAY investment, which will be used as liquidity rewards to further incentivize lending/borrowing and Pool 2.
12.5% Devs - 6 month cliff, 24 months linear unlock
7.5% Investors - 6 month cliff, 24 months linear unlock
5% Advisors - 6 month cliff, 24 months linear unlock
For bridges, liquidity partnerships, etc
Emission Formulas
Rewards for using the protocol
Where t = epoch, and 1 epoch = 2 weeks
Therefore, E(0) = emissions for first 2 weeks = 25,000,000 KLEX
Pool 2 rewards
Where t = epoch, and 1 epoch = 2 weeks
Therefore, E(0) = emissions for first 2 weeks = 10,000,000 KLEX
Ve rewards
The formula for Ve is not dependent on time. Instead, it is based on lock duration and, amount being locked, and how many tokens are remaining in the Ve reward pool.
With the following formulas, Ve stakers are guaranteed a specific amount of KLEX as their Ve rewards when they lock in, without having to worry about dilution.
If tokens remaining in reward pool is greater than 8% of the supply:
Where:
R(a,d) is the number of KLEX that the user will receive
a = amount of KLEX being staked
d = duration that the KLEX will be locked for
D = Maximum duration that KLEX can be locked for. This is a constant at 2 years.
Note that d/D is squared in order to attribute the importance of longer lock times in the early days of the protocol. The constant "3" is used to intentionally boost the rewards for this period.
2. If tokens remaining in reward pool is less than 8% of the supply:
Where:
R(a,d,r) is the number of Klex that the user will receive
a = amount of KLEX being staked
d = duration that the KLEX will be locked for
D = Maximum duration that KLEX can be locked for. This is a constant at 2 years. Since D is greater or equal to d, the final multiplier is less than or equal to 1.
S = The circulating supply of KLEX. Since S + a is greater or equal to a, the first multiplier is less than or equal to 1.
r = remaining rewards for the Ve rewards pool
Note that since all multipliers outside of r in the above formula are less than or equal to 1, the Ve reward pool will always have enough KLEX to pay out rewards.
It continues to incentivize people to lock earlier than later, and lock for longer. However, the lock duration has a slightly lower emphasis at this point (d/D is no longer squared).
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