Tokenomics $KACY

Kassandra Foundation
7 min readFeb 27, 2024

Make $KACY Great Again!

The moment has finally come for us to unveil the eagerly awaited plan to enhance Kassandra, aligning with the expectations of the new crypto era.

Throughout the bear market, our focus has been on continuously improving our platform — identifying bugs, introducing features of interest to investors and managers alike, and responding to the valued feedback of our esteemed community. As the landscape shifts, the Kassandra team recognizes the importance of sharing concrete plans for the year ahead.

Today, we delve into the recent transformations at Kassandra, outline our vision for the future, and introduce the updated tokenomics for $KACY.

Following the update to our Tokenomics, we’d like to first present the redesigned logos for $KACY and the Kassandra platform. The refresh introduces a subtle yet highly appreciated change, focusing on a crucial aspect of design that’s vital for brand representation: scalability.

Our logo has been optimized to maintain its distinctiveness even when scaled down to 30% of its original size, ensuring it remains recognizable in various contexts without compromising its defining features. By refining the line thickness, we’ve enhanced the logo’s compatibility with the Kassandra brand name, achieving consistency with the imagotype.

Regarding the distinction between the $KACY symbol and that of the Kassandra platform, the former is depicted as fully filled, distinguishing it clearly from the latter.

Here’s a version of the new logos optimized to PS2

This differentiation echoes the familiar distinction in the crypto community between Bitcoin (the currency) and the bitcoin network (the protocol), where one signifies the circulating currency and the other the underlying protocol. For $KACY and the Kassandra protocol, this delineation fosters a symbiotic relationship, highlighting the mutualistic interaction between the currency and the protocol.

We’re convinced the KACY token will serve as a catalyst for the Kassandra platform, breaking through the influencer bubble and attracting a wider audience. Our vision sees the KACY token gaining from fees generated on the Kassandra platform, as well as interactions with other successful portfolios.

To realize this vision, we’ve laid out a two-pronged strategy. The first step focuses on drawing new managers to the platform. The second aims to reconnect with Kassandra’s roots, embracing a more ‘DEGEN’ approach!

Popping the influencer bubble!

The first influencer success story comes from Cyril and his pools. The ‘Share and Earn’ feature has shown its worth in drawing both investors and influencers, especially when amplified by incentives in the form of $KACY rewards.

Highlighting Cyril’s achievements to other influencers and managers, and demonstrating the potential profits and advantages they can offer to crypto communities, will encourage their start on the platform.

Like Cyril, all newcomers will be met with open arms and receive extensive support from the Foundation, including KACY rewards and active promotion by our marketing team.

Consider this akin to customer acquisition: there’s always an acquisition cost.

Going back to the roots and being more Degen!

We’re initiating a Proof of Concept (POC) with 3 pools, each featuring a 5% $KACY allocation and adopting Cyril’s fee structure: 2% on deposits, with 1% directed towards Share and Earn.

This strategy aims to generate buying pressure for $KACY as the pools gain traction. Moreover, if the market trends upward, $KACY stands to gain significantly, given its 95% exposure to the liquidity of other tokens.

Community feedback has frequently highlighted the importance of $KACY token liquidity — a critical aspect we’re addressing. Our ‘Balancer Manager Pools’ on the Kassandra platform function similarly to Uniswap’s liquidity providers, allowing us to leverage this to the KACY token’s advantage, offering portfolios with superior rewards through market exposure.

The three portfolios will span across different risk tiers: ‘High Risk’, ‘Medium Risk’, and ‘Low Risk’, each aligned with coins of higher and lower market caps.

Typically, coins with a higher market cap boast greater liquidity, whereas those with lower market caps, though less liquid, offer the potential for significant gains. We’re setting up one portfolio for each category across each of our chains.

We need to explore new avenues for profitability on the Kassandra platform!

Currently, the Kassandra platform isn’t generating significant revenue, with our sole income stemming from a modest annual fee of 0.5% on managed Total Value Locked (TVL). This amounts to roughly $29 a month from the $70,000 deposited on the platform.

To address this, our plan is to initiate discussions in the forum and conduct governance voting to introduce a 0.5% withdrawal fee from the pools. While it’s a small step, it represents honest work towards maintaining the protocol. This proposal will be subject to a DAO vote.

However, merely implementing this withdrawal fee won’t suffice. For the platform to truly thrive, we need to broaden its user base, which we believe can be achieved by popping the influencer bubble and attracting more investors to our featured pools.

The Tokenomics Update — How much will we distribute and how?

Finally, we have reached the topic that you all have been eagerly awaiting.

First: how?

As we delve into the more intricate aspects of our strategy, we encounter the crucial task of setting incentives that encourage meaningful engagement within the platform. Our objectives are twofold:

  • To familiarize users with the platform and equip them with the knowledge to profit from it.
  • To enhance the liquidity of the KACY token.

Cyril has emerged as a pivotal figure in attracting users to the Kassandra platform. By incentivizing him to draw more participants to his pools and showcasing his success as a model for other managers and influencers, we believe we can replicate and amplify this success across the platform.

Our introduction of the three new pools aims to serve as a proof of concept to how we can indirectly boost the liquidity of the KACY token — reviving a strategy we have successfully implemented in the past. By allocating 5% liquidity to these pools and offering rewards to those who engage more with them, particularly those holding a 50% stake in KACY, we ensure more substantial incentives for participation.

How much $KACY will we distribute?

As we approach the 50-day mark leading up to the Bitcoin Halving, anticipation grows for a potential demand surge in cryptocurrencies and innovative solutions addressing market challenges. In light of this, the coming year stands as a pivotal moment for the Kassandra platform to achieve significant milestones and enhance its visibility.

Presently, we have a reserve of 2.8 million Kacy tokens available for distribution. This allocation translates to an average distribution of 350,000 Kacy tokens per quarter over the next two years.

What are we going to do?

Building on the recent proposal approval for Kacy distribution, which initially allocated 141K Kacy per quarter, we’re upping the ante. The next quarter will see an increase to 250K Kacy. Looking ahead, we anticipate this figure to potentially reach 500K Kacy per quarter as we onboard more partner managers and establish further collaborations with other protocols.

In this upcoming distribution of 250K Kacy, we’re allocating to ‘3 LPs with 50% Kacy’, ‘3 Concept Pools with 5% Kacy’, ‘3 Power Vote Pools’, and 2 of Cyril’s Pools. Cyril’s Pools, beneficiaries of the Manager Incentive Program, have already brought over 60 new users to Kassandra — an initiative aimed at incentivizing managers to utilize the platform and distribute KACY to those introducing new users.

Modifications to the pools where KACY is purchased

We’re refining our approach to Kacy acquisition, focusing on areas where liquidity is underutilized or lacks clarity in KACY acquisition pathways. Efforts are underway to establish partnerships with platforms such as TraderJoe to facilitate smoother Kacy transactions and bolster liquidity.

Additionally, we’re planning to enhance liquidity and rewards across the Avalanche, Polygon, and Arbitrum networks. Collaborating with partners boasting strong UI/UX and visibility on these networks will be instrumental in advancing our project.

If you’re interested in helping Kassandra to achieve this goal, contact us in the Discord Platform.

Tokenomics - the distribution

250k Kacy will be distributed as follows:

Avalanche rewards:
5k KACY for staking KACY without withdrawal delay
15k KACY for staking KACY with 15 days of withdrawal delay
50k KACY for staking KACY with 45 days of withdrawal delay
40k KACY for staking LP of KACY-AVAX
20k KACY for staking ‘Low Risk’ portfolio with 5% KACY

Polygon rewards:
40k KACY for staking LP of KACY-ETH
15k KACY for staking ‘Medium Risk’ portfolio with 5% KACY
8.5k KACY for staking KKF

Arbitrum rewards:
40k KACY for staking LP of KACY-ETH
10k KACY for staking ‘High Risk’ portfolio with 5% KACY
6.5k KACY for staking aKKF

Conclusion

These strategic updates and initiatives are designed to enhance the functionality and utility of both the Kassandra platform and the $KACY token, fostering a robust ecosystem for our users.

By focusing on user engagement, expanding our user base, and improving liquidity across various networks, we aim to strengthen the fundamental value proposition of our platform and token.

Our goal is not to speculate on or promote price increases, but rather to build a sustainable and thriving community-driven platform.

Let’s make Kassandra and $KACY not just great, but exceptional!

The Kassandra Team

About Kassandra

Kassandra is a decentralized autonomous organization (DAO) asset management platform that simplifies creating and investing in tokenized portfolios. It utilizes Balancer Labs Managed Pools and offers a unique approach compared to other asset management platforms.

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Kassandra Foundation

The decentralized autonomous organization that governs tokenized data-driven investment funds