Guidelines for KAIA Reward Criteria

We would like to inform you about the reward criteria for on-chain contributors who participated in the recent mainnet merge proposal ‘FGP-23.’ We have actively incorporated community feedback to finalize the new reward distribution criteria, and please refer to the details below. (Previous reward criteria: NEW TOKENOMICS’ Finschia Contributor Rewards)

Reward Volume and Target

• Rewards: Total of 80 million KAIA (fund source: Kaia Ecosystem Fund; KEF)
• Target: All FNSA holders who staked FNSA and participated in the merge proposal (FGP-23) governance vote

Reward Criteria Based on Community Feedback

The initial reward payout criteria were initially based on “80 million PDT (now KAIA) * (My staked volume / Total staked volume).” After considering community feedback, we refined the reward policy to provide more benefits to long-term contributors to the Kaia ecosystem. This change ensures fair rewards and enhances the sustainability of the Kaia ecosystem.

1. Empowering genuine contributors: The community suggested enhancing token value by focusing on those who truly contribute to the ecosystem with dedication and effort.
2. Rewarding long-term contributors: The community suggested recognizing long-term on-chain contributors to the Kaia ecosystem for their significant support. Since the introduction of FNSA staking, we have been acknowledging and rewarding individuals based on their contributions.
3. Encouraging continuous on-chain contributors: The community suggested that more rewards should be allocated to those who continue to contribute on-chain even after the Kaia ecosystem merge, acknowledging their consistent participation and dedication. Additionally, measures were suggested to prevent users from participating in the vote and then leaving the Kaia ecosystem. In response, we have adjusted the rewards: 40 million PDT (now KAIA) allocated for voting participation rewards, and the remaining 40 million PDT allocated for long-term contribution rewards.

▸ As-Is

Distribute 80 million KAIA based on the proportion of staked KAIA

80 million KAIA at the conclusion of the FGP-23 vote* (My staked volume / Total staked volume)

▸ To-Be

(1) Distribute 40 million KAIA based on the proportion of staked KAIA

40 million KAIA at the conclusion of the FGP-23 vote * (My staked volume / Total staked volume)

(2) Distribute up to 40 million KAIA

Payout based on on-chain contributions (for long-term holders and potential Kaia contributors)

• Reward assessment period: Before the merge proposal vote — end of Kaia Portal Mission Epoch 1 (approx. 3 months after the issuance of the KAIA token)
• Payout: Distributed over 6 months, starting 1 month after the end of the reward assessment (rewards unlocked monthly at 15% — 15% — 15% — 15% — 20% — 20%)

(2–1) 10 million KAIA

Higher weight to long-term FNSA stakers

• Reward assessment period: 2023.04.15 — end of FNSA inflation
• Reward payout: Distributed over 6 months, starting 1 month after the end of the reward assessment

(2–2) Up to 30 million KAIA

Payout proportionally based on contributions earned through participation in the Kaia Portal Mission

• Reward assessment period: End of Kaia Portal Mission Epoch 1 (approx. 3 months after the issuance of the KAIA token)

Note: If you do not participate in the Kaia Portal Mission (2–2), you will be excluded from claiming the 10 million KAIA rewards program (2–1).

By respecting suggestions from the community, we have further defined the reward distribution policy to provide more benefits to users who genuinely contribute to the Kaia ecosystem. We will continue to actively reflect the community’s voices, maintain a fair and transparent reward system, and work towards the activation and stability of the Kaia ecosystem. We also plan to introduce Kaia guidelines related to on-chain services and the Kaia Portal for swapping FNSA to KAIA tokens shortly, so please stay tuned for updates.