Kassandra DAO & Token
The Kassandra Protocol enables partnerships with quantitative investment funds, external data providers, and fund managers to create a diversified portfolio of investment products. As Kassandra plans to be a truly decentralized fund manager without centralized leadership, we rely on creating a decentralized autonomous organization using a set of smart contracts to carry and execute decisions.
By creating a member-owned DAO through a governance token we plan to drive economic value from the financial products to the token holders, incentivizing all members to manage and deploy new investment products that grow the Kassandra ecosystem, with the token holders being committed to actively participating in crucial aspects to the success of Kassandra.
Having a functional and fully decentralized organization is one of the most important features of Kassandra, making it unique are the people connected behind the scenes. In a way, forking smart contracts and creating a new project is not a difficult task, but Kassandra goes beyond that. With a well-structured team focused to develop, deploy and manage data-driven trading strategies through decentralized mechanisms, we are ready to build a new paradigm of trustless fund management.
To act as a tool to assess decentralized decisions, Kassandra will have $KACY as its protocol governance token, which will be the intermediate for:
- The approval and deployment of new code implementations and improvements;
- The approval of new Index Tokens and their management;
- Managing the rewards of the liquidity mining program;
- Setting and changing parameters related to staking pools or Index Tokens;
- Governing the DAO wallet and earnings from the financial products.
Any changes described above will necessarily need to be approved by a majority of the voting group, where $KACY could be staked to earn voting power.
The initial and maximum supply of the governance token is 10,000,000 $KACY, which will be distributed as follows:
- DAO & Rewards 46.5%: exclusive managed by DAO governance, which can be used to deploy capital to liquidity mining and staking rewards;
- Foundation Reserves 20%: for future capitalization, reserve, development bounties, 6 months of lockup plus 18 months of linear vesting;
- Seed Sales 5%: with 3 months of lockup plus 9 months of linear vesting;
- Private Sale 10%: subject to 3 months of locking period and released in linear vesting in the next 9 months;
- IDO 5%: in partnership with Penguin Finance, instantly released;
- ILO 1%: offered at the launch of the token, it will remain in a lock for 6 months with custody of the foundation;
- Team 12.5%: for founders and protocol development team, subject to 6 months of locking period and released in linear vesting in the next 18 months;
No other governance tokens will ever be created.
Governance and Staking
We relentlessly worked to design a governance and staking mechanism that could best represent and reward individuals that are fully committed to the future of Kassandra when participating in the governance process.
We chose to create our governance system around staking pools for the $KACY token that rewards the user with voting power, which will be used to vote on proposals to actively participate in the DAO. Those pools will have an optional parameter, named withdraw delay, which is the time the users will have to wait to remove the funds of the staking pool, counting from the moment after a withdraw from the staking is requested.
The withdrawal delay is a mechanism that rewards users that truly want to be involved with the Kassandra DAO decision process, that do not urge for liquidity when staking and have a long-term vision. More than that, this mechanism also drives $KACY market scarcity.
At the launch of Kassandra, the users can select from three options to receive voting power:
- $KACY without withdrawal delay: 1 voting power per $KACY in staking;
- $KACY with 15 days of withdrawal delay: 2 voting power per $KACY in staking;
- $KACY with 45 days of withdrawal delay: 3 voting power per $KACY in staking;
The voting power of tokens in the current withdrawal period is reduced to 1 voting power per $KACY.
All those staking options, with different withdrawal delays and voting power multipliers, are initial configurations for the start and bootstrap of Kassandra, but none of them are definitive. In the following moments after the launch of Kassandra the community can choose to change those parameters and pool options, in a way to better represent the interests of Kassandra.
For factual governance, proposals will have two voting options: favorable or against. For a proposal to be considered valid, it must accumulate 4% of the total voting power in the sum of the two voting options, otherwise, the proposal is rejected due to the lack of a representative choir. For a proposal to be approved, there must be more voting power in favor than against, otherwise, the proposal is rejected by majority decision.
To create a proposal that the community will vote on, the portfolio that issues the proposal must have more than 1% of the total voting power.
Liquidity Mining and Staking Rewards
To create a fully decentralized organization, with a well-distributed token, we chose to have a big part of the total supply (46.5%) slowly available through rewards for $KACY and Index Tokens stake, rewarding people that engage and help Kassandra in the early stages. At launch, we chose to reward three different staking options.
First, the staking of $KACY for governance porpuses in all the staking pool options. These staking rewards will reward users that plan to hold $KACY in the long term, achieving a good yield while keeping tokens locked outside the markets.
Second, we chose to reward users that stake our first Index Token, namely $aHYPE. With this, we encourage users to mint and stake the first Kassandra product, promoting the popularity and market growth of our first trading strategy while increasing the financial value managed by Kassandra.
Third and last, we will be rewarding those who provide liquidity for the $KACY token at Uniswap, through the stake of the UNI-V2 $KACY/ETH LP token.
At launch, we defined that for the first 3 months 400,000 $KACY will be released linearly at a rate of ~4,444 $KACY per day, with the distribution plans as follows:
- 1,111 $KACY day to the staking of the Index Token $aHYPE;
- 1,667 $KACY day to the staking of UNI-V2 $KACY/ETH LP token;
- 278 $KACY day to the staking of $KACY without withdrawal delay;
- 556 $KACY day to the staking of $KACY with 15 days of withdrawal delay;
- 833 $KACY day to the staking of $KACY with 45 days of withdrawal delay;
After the launch, all rewards distribution details will be fully governed by the DAO.
Sustaining a long and smooth distribution for the next years should help with token and voting distribution, giving tokens and more voting power to individuals that are involved with Kassandra, achieving a truly decentralized ecosystem.