The launch of the $KFI token was an… interesting event. At least 3 coordinated groups found their way to the token early and descended upon the day-old community like a swarm of locusts. Understandable. Making money is mostly what crypto has become, but we don’t want to signal that Karma Finance tokens are anything more than utility tokens. That’s not what Karma is about.
Some Machiavellian measures were taken to make Karma Finance less attractive to such coordinated efforts from the start. It’s nice to smell coffee early in the morning, but give the good stuff some time to brew.
The measures had the intended effect, and the community that remains now are less focused on “me, me, me” and more focused on “we, you, and huh?”. Much better.
And now we can begin.
New Total Supply of 513,000 Tokens
The purpose of the $KFI token is to use it as a multiplier when minting $KARBS. You will eventually want more KFI supply, not less. Most people haven’t figured this out yet.
The current DeFi space is, in large part, determined by the structure of Yearn Finance. Lower supply is strongly desired by the Karma Finance community. So, the total supply will be reduced to a total of 513,000 and people will just mint with, for example, 3 tokens across multiple platforms instead of 3,000 tokens. The minting power will not change, however. This number is just psychological.
The supply of 3,729,677 $KARBS tokens will remain unchanged. Note that these will have event-driven deflation. People will automatically burn $KARBS when using them to claim ETH rewards in the protocol.
It’s the KFI workout plan.
Token and Liquidity Locks
Most of the token supply will be will be locked in 3 contracts.
- Community Reserve — 155,000 tokens
-85% locked for one year (131,750 tokens)
- Team Reserve — 155,000 tokens
-100% locked for one year (155,000 tokens)
- Development Reserve — 155,000 tokens
-85% locked for one year (131,750 tokens)
After 1 year, each wallet will see an additional 15% of supply unlocked every year for the following 7–8 years (longer for the team wallet).
Additionally, 100% of remaining liquidity will be locked for a period of one year within 3 days of the swap.
A token snapshot will be taken sometime around September 15, 2020. Thereafter, a new token will be created. You do not need to send your old tokens back. New tokens will be sent to the same address that holds the current tokens.
Those who have held their tokens longest will get theirs first. People who obtain tokens just before the snapshot will get theirs last. (After the snapshot, there should not be any old tokens available to obtain. Just keep them in your wallet in order to get the proper amount of new tokens.)
Thereafter, the Uniswap address will be updated.
Still Community-Driven, Sans Rewards
Karma Finance is a community-driven project. We began with 0 funding as a matter of design and principle. We do not need your funds, but the project cannot survive without your help.
Token rewards for helping the project will be cancelled. Feel free to help a good project if you’d like.
We will no longer rely on $KFI or $KARB donations to keep the project going but will rely on a more measurable metric in the form of a development fund.
The Development Fund is There to Develop
We have made our Github repos private until we are ready to launch and the broader crypto community can better understand what we are doing. Karma Finance is actually a child project of a much larger project that the founder is working on, called Consensus Finance. (Forking your own code to build on the same ideas isn’t bad, of course.)
KFI governance tokens are there to help support development of the Karma Finance protocol in addition to being used as a way to multiply your KARBS.
We wanted to make a DeFi product that was both easy-to-understand for the average person and attractive. Try explaining any of the other DeFi projects to your parents or even to your friends and see if they can understand how it works. Good luck.
DeFi can be easy with mass appeal. The concept is “karma” is easily-understood by nearly everyone. That’s where we come in.
First… A platform to use $KFI to mint $KARBS for someone to claim ETH rewards. ← you are here
Then… An additional platform to use $KFI to ….
The hardest thing for a developer to do is to make something simpler. Simple things become fundamental and widely used. We can put Karma Finance in the hands of millions by making DeFi easy.
So let’s get started.