The Kasa Project: Tokenomics
One of the key things to understand when checking out a web3 project is the Tokenomics, which is crypto speak for the Economics of the project. Poorly designed tokenomics ultimately lead to project failure for the community, so we have been very careful to ensure that Kasa’s tokenomics are fair for all and enable the community to be a part of the project. In this article, we will look at the $KASA Token Distribution and the Bonding Curve, which are key parts of our Tokenomics design.
The total (max) supply of $KASA is 100,000,000 tokens and these are distributed as per the chart above. There are 6 distribution buckets and we describe these below. By having a max supply in place, we want to encourage value growth for the token based on its utility and true market capital, rather than hyperinflation. Today there are far too many projects that rely on hyperinflation, which causes millions, billions or trillions of additional tokens to be minted, thereby diluting the market cap for all holders. So many projects start off this way only to die out later (pump and dump). We are not following that model. Let’s look at the 6 different allocations of tokens.
The community for Kasa is our core, and so is heavily represented in our token distribution. By allocating 60% of all tokens to the community, the community holds the major stake and voice. This also allows for liquid and fair movement of tokens, reducing the risk of a single actor retaining, or dumping a large amount of tokens and crashing the price.
These tokens will be minted and released in stages, through our bonding and staking mechanisms. The very first $KASA tokens will be available soon for those who have signed up for the whitelist (register at https://kasa.finance) to allow fair access to all. Over time we will release more tokens so that more people can get involved.
Tokens from the community allocation will also be used to provide the staking rewards based on real returns from the treasury. By backing each released token by the returns from the treasury, we ensure that the value of $KASA stays strong and is not diluted like so many other staking projects out there.
Our team have contributed so much of their own time and resources, and many late nights and weekends to make this project a success! We want to reward our team and provide returns for their hard work, however, we are careful not to offer disproportionate token allocations. So we have allocated only 5% of the total $KASA tokens to be split between the team members and subject to a vesting period with stable releases over 2 years. During the project launch, the team will be given a small allocation of tokens to take part in the community with everyone else.
10% of the total pool of tokens has been allocated to marketing which is one of the most critical success factors in new projects. These tokens will be used to engage in marketing activities such as promotions, airdrops and other reward mechanisms to help our community grow! Many of these tokens will end up back in the hands of the community through this process. We also love to hear from Kasa citizens — so feel free to reach out with any ideas in this space!
At this stage, Kasa has not partnered with any VCs or other projects who would take a stake in Kasa. We have lofty plans for the Kasa community however, so we have allocated 10% of the tokens to allow forming future partnerships with groups or projects that would benefit the growth of the Kasa community and $KASA holders.
Another 10% of the $KASA tokens have been allocated to the Kasa reserve to be held for future initiatives and requirements. Examples of this could be to add more liquidity to the pools, to support the growth of sub-projects, or many other things. But these tokens will remain in a separate reserve wallet and not be used until one of these requirements is met. Its ultimate purpose is to keep the community moving forward!
Last, but certainly not least, the team at Kasa are very passionate about supporting charity groups around the world; whether that be providing shelter for the homeless, clean water access for those in need, or a wide range of other needs in the global community. The remaining 5% of $KASA tokens have been allocated to allow us to collectively give back and we look forward to hearing your suggestions on where help is needed the most!
The $KASA token will be launched soon via Bonding through our dApp (sign up for early access on our website: https://kasa.finance) Initially, both $SOL (Solana Network) and $USDC (Solana Network) will be available for bonding. Bonded assets are exchanged for $KASA tokens at the prevailing rate. The bonding rate will increase as demand increases (i.e. as more $KASA tokens go into circulation), according to the following curve:
Naturally, the earlier you Bond the lower the exchange rate. As part of our roadmap, $KASA will be listed on decentralized exchanges later to enable free trade and cross-chain exchange.
That was a detailed look at one aspect of our Tokenomics Model — The Token Distribution Plan. It’s not complex, but it is a strong model to make this work for the long term. There are a lot of great things coming in this project and we are glad you are on this journey with us! The launch of $KASA isn’t far away now, so make sure you check out our website and sign up for the whitelist, and follow us on Twitter for more info! Thanks for reading, Kasa Citizen!