KAON Token Restructuring and Treasury Formation Proposal
Proposal ID: KIP-001
Date: Feb 4, 2025
Executive Summary
This proposal presents a restructuring plan to rejuvenate the KAON ecosystem through the following core actions:
- Immediate Token Burn of 500M tokens from currently unlocked supplies
- Market Making Allocation of ~349M tokens to ensure sustainable liquidity
- Structured Burn Program with 70% of future unlocks dedicated to burning
- Migration from AKRO to a new KAON token on Ethereum with a built-in deflation mechanism
- Establishing a Community-Governed Treasury with 15% of unlocks, plus 15% for events and ecosystem growth
By implementing a clear burn schedule, improving token utility, and allocating resources for sustainable growth, I aim to reinforce market confidence, increase user engagement, and position KAON for long-term viability.
Background
The KAON ecosystem stands at a pivotal moment of transformation and growth. With an engaged community and strong technological foundation, it’s positioned for significant improvements that will enhance the ecosystem’s strength and sustainability. My analysis has identified several key opportunities:
- Liquidity Enhancement: Opportunity to implement professional market-making and deep liquidity pools through strategic token allocation
- Supply Optimization: Potential to create a more efficient token economy through structured burning and precise vesting schedules
- Community Empowerment: Ability to strengthen community governance and participation through transparent treasury management
- Technological Advancement: Readiness to upgrade the infrastructure with next-generation features and scalability improvements
To capitalize on these opportunities, I introduce a comprehensive strategy that combines:
- Strategic Token Management: A structured approach to token burns and market-making allocation that optimizes supply dynamics
- Ecosystem Evolution: Migration to the enhanced KAON token, featuring built-in deflation mechanisms and improved utility
- Community-Centric Governance: Implementation of a transparent, KPI-driven treasury system that ensures sustainable funding for development, marketing, and community initiatives
- Professional Market Making: Dedicated allocation of ~349M tokens to ensure robust liquidity and market stability
This initiative represents a natural evolution of the ecosystem, building upon existing strengths while implementing proven tokenomic principles to drive sustainable growth.
1. Token Burn Strategy
A. Immediate Burn of Unlocked Tokens
To restore market confidence and reduce total supply immediately, I propose burning 500M tokens from currently unlocked supplies. Based on the latest wallet information:
- Wallet #4 ([0x73d348e3…804d66]):
- Burn Amount: 450,000,000 tokens (100% of unlocked balance)
- Wallet #5 ([0xedb2e5c8…87491]):
- Burn Amount: 50,000,000 tokens (20% of unlocked balance)
This immediate burn will:
- Visibly reduce the total and circulation supply
- Signal renewed commitment to deflation and ecosystem health
- Set the stage for subsequent structured burns
B. Market Making Allocation
To ensure sustainable liquidity, ~349M tokens will be allocated for market making:
- Wallet #1: 126,448,893 tokens
- Wallet #3: 22,302,874 tokens
- Wallet #5: 200,000,000 tokens
C. Structured Burn Program (2025-2028)
Future token unlocks will follow a structured allocation model:
- 70% of each unlock: Burned
- 15% of each unlock: Treasury
- 15% of each unlock: Events and Ecosystem
Detailed Token Allocation & Schedule
Current Wallet Allocations
| Wallet / Address | Category | Total Allocated | Currently Releasable | Proposed Immediate Burn | Proposed for MM | Remaining Locked | Vesting End | Daily Unlock |
|---|---|---|---|---|---|---|---|---|
| 0x5755f61C…fe68 | Foundation + Team (Linear) | 4,497,629,689 | 126,448,893 | 0 | 126,448,893 | 4,371,180,796 | July 2, 2028 | ~3,491,444/day (after start) |
| 0x07dCF91…3D49 | Ecosystem (Linear) | 1,500,000,000 | 0 | 0 | 0 | 1,500,000,000 | July 2, 2028 | ~1.23M/day (est. start 2025) |
| 0x7Ac714C…06Fb | Ecosystem + Team (Linear) | 793,699,356 | 22,302,874 | 0 | 22,302,874 | 771,396,482 | July 2, 2028 | ~600–650k/day (after start) |
| 0x73d348e…4d66 | Dev (Fully Unlocked) | 450,000,000 | 450,000,000 | 450,000,000 | 0 | 0 | – | N/A |
| 0xedb2e5c…7491 | Dev (Fully Unlocked) | 250,000,000 | 250,000,000 | 50,000,000 | 200,000,000 | 0 | – | N/A |
| Totals | 7,491,329,045 | 848,751,767 | 500,000,000 | 348,751,767 | 6,642,577,278 | – | ~4M daily until Jul 2025, after 5.23M until Jul 2028 |
Half-Yearly Unlock and Distribution Schedule
| Period | Approx. Unlocked (B) | Burn (70%) (B) | Treasury (15%) (B) | Events (15%) (B) | (Treasury + Events) (B) | Cumulative Circulation (B) |
|---|---|---|---|---|---|---|
| Starting | — | — | — | — | — | 7.86 |
| H1 2025 | 0.64 | 0.448 | 0.096 | 0.096 | 0.192 | 8.052 |
| H2 2025 | 1.01 | 0.707 | 0.152 | 0.152 | 0.304 | 8.356 |
| H1 2026 | 0.994 | 0.696 | 0.149 | 0.149 | 0.298 | 8.654 |
| H2 2026 | 1.01 | 0.707 | 0.152 | 0.152 | 0.304 | 8.958 |
| H1 2027 | 0.994 | 0.696 | 0.149 | 0.149 | 0.298 | 9.256 |
| H2 2027 | 1.01 | 0.707 | 0.152 | 0.152 | 0.304 | 9.560 |
| H1 2028 | 1.016 | 0.711 | 0.1524 | 0.1524 | 0.3048 | 9.865 |
| H2 2028 | 6.674 | 4.672 | 1.0024 | 1.0024 | 2.0048 | ~10.0 |
2. Token Migration: AKRO → KAON
Technical Specifications
- Token Name: KAON
- Blockchain: Ethereum
- Deflation Mechanism:
- A portion of fees (e.g., protocol fees, subscription fees) is burned to reduce total supply over time.
- Additional deflation triggers (e.g., on-protocol operations) may be introduced based on community governance.
Implementation Steps
- Deploy & Verify the KAON token contract (audit published).
- Immediate Burn of 500M tokens (as detailed above).
- Initiate the migration process, from AKRO to KAON on exchanges.
3. Community Treasury & Governance
Structure
- Treasury Allocation: 15% of each token unlock
- Events & Ecosystem: 15% of each token unlock
- Governance: A multi-signature wallet (4-of-7) + a 24-hour timelock on major transactions
Treasury Allocations
- Development & Operations
- Core development, infrastructure, operational costs
- KPI-based milestone releases
- Community & Marketing
- Community Growth: Grants, bounties, user incentives
- Marketing Campaigns: Exchange listings, brand promotion
- Ecosystem Expansion: Partnerships and new DApp incentives
4. Revised Airdrop Program
A. Active Community Airdrops
- Criteria: Governance participation, DApp usage, periodic tasks
- Distribution: Funded from the Events allocation (15% of unlocks)
- Goal: Encourage community activity and early adoption of new features
B. Large Holder Airdrops
- Criteria: Maintaining a ≥10M KAON balance during specific snapshot windows
- Frequency: Quarterly, aligned with treasury unlock events
- Purpose: Reward and retain larger stakeholders, stabilizing the market
5. Implementation Roadmap
Phase 1: Immediate Actions (Q1 2025)
- Smart Contract Deployment
- Launch KAON token contract
- Complete and publish security audit
- Initial Burns & Allocations
- Execute 500M token burn
- Allocate 349M tokens for market making
- Migration Setup
- Coordinate with exchanges
- Deploy migration infrastructure
Phase 2: Governance Setup (Q2 2025)
- Multi-sig Treasury
- Implement 4-of-7 scheme
- Deploy 24h timelock mechanism
- KPI Framework
- Establish measurement criteria
- Set initial milestones
Phase 3: Ongoing Operations (H2 2025 onwards)
- Regular Burns
- Execute 70% burns of each unlock
- Track progress toward 10B target
- Treasury Management
- Manage 15% treasury allocation
- Oversee 15% events allocation
- Community Programs
- Launch airdrops
- Implement engagement initiatives
6. Risk Mitigation & Success Metrics
Risk Mitigation
- Technical Security
- Multiple independent audits
- Gradual migration approach
- Operational Security
- Multi-sig governance
- Timelock mechanisms
- Market Stability
- Professional market making
- Structured burn schedule
Success Metrics
- Short-Term (1-3 months)
- Complete 500M token burn
- Establish market making operations
- Launch KAON token contract
- Medium-Term (3-6 months)
- Complete token migration
- Achieve target liquidity metrics
- Launch community programs
- Long-Term (6+ months)
- Meet half-yearly burn targets
- Maintain steady progression toward 10B supply
- Achieve sustained community engagement
Conclusion
This comprehensive proposal outlines a clear path forward for the KAON ecosystem. Through immediate action (500M token burn), strategic allocation (349M for market making), and structured future burns (70% of unlocks), I establish a transparent progression toward the 10B supply target by H2 2028. The balanced approach to treasury (15%) and events (15%) funding ensures sustainable development while maintaining community focus.
I invite the community to review and provide feedback on this proposal. Upon approval, I will immediately begin implementation, starting with the specified burns and market-making allocations.
Final Note: All burn transactions will be conducted transparently on-chain, with transaction hashes published for community verification. Regular updates on progress against the roadmap and KPIs will be shared through official channels.
Voting Period: February 12 - 15