We are very excited to share with the community our plans to launch on Kusama, and while the support for that has been tremendous there were a few concerns around tokenomics.
The main two points continually raised by our community were:
- The swapping mechanism was deemed unfair, and there was consensus that it should be an airdrop to reward $KYL holders.
- Total supply, there was concern that adding another 1B to the same ecosystem might lead to dilution.
What we did
We have always said that our community is the most important aspect of our project, we sat down, listened, and took notes. In less than 24 hours we have adapted. We hope this shows how much we care and value our community. We will always remain vigilant to incorporate their feedback as soon as possible which is in-line with our DAO in practice model
Thank you to all the contributors who gave us some amazing ideas; our community spoke and we listened!
The swapping mechanism has been scrapped — we will now airdrop $KYL holders with $PCHU. Also, the total supply has been reduced to 100m. i.e. 10% of the supply of $KYL.
The new tokenomics can be found below:
- 30% parachain crowdloan fund
- 10% PLO Reserve (Used for future auctions)
- 9% Community rewards
- 5% Lock drop rewards
- 6% Holders reward
- 20% Marketing fund. (Used for promotions and educational content)
- 10% Liquidity fund (Liquidity for KSM swaps)
- 10% developer fund. (Used for infrastructure costs and validator rewards)
Lock Drop Rewards
Total lock drop rewards amounts to 5%.
- 0.5% $PCHU will airdrop to $KYL holders who lock their $KYL per month. This will last 10 months.
Total rewards 6%
- 1% $PCHU will airdrop to $KYL holders immediately and the remaining tokens will be distributed each month (0.5% per month).
Snapshot details will be shared shortly after winning our slot, so stay tuned.
Based on holder rewards of 6%, 6m / 173m equates to 0.034 $PCHU per KYL.
The values will of course be different for lock drop rewards as its 5% instead of 6%
To clarify, the team will only be using the remaining funds to further reward the community holders and increase adoption via education/tutorials/marketing initiatives.
One thing that we have learned is that we need to add the governance functionality to allow the $KYL holders to propose and vote, and therefore have a more valid feedback loop moving forward for these types of initiatives as we iteratively move toward a DAO. We will focus on adding this functionality as soon as Pichiu is launched. This also applies to the other team funds.
One Last Thing
Pichiu network is about rewarding our community, the vast majority of the funds will be used for the community and pushing adoption.
In addition, we have also taken the decision to exclude private/seed investors from the rewards. All rewards will only be given to addresses who have bought Kylin from the whitelisted launch and after.
About Kylin Network
Kylin Network aims to build a cross-chain platform powering the data economy on Polkadot. It will be the data infrastructure for the future DeFi and Web 3.0 powered by Polkadot. Kylin Network will provide valid, reliable, secure, cost-effective, and easily-coordinated data sources and data analytics.