Introduction to KTON
KTON is essentially a derivative token of RING，which encourages long-term lock and commitment. RING staking participants can lock RING for 3–36 months and get KTON as rewards, compensating for the liquidity loss.
Token Specification
- Name: Darwinia Commitment Token
- Symbol: KTON
- Network: Ethereum
- Spec: ERC20
- Precision: 18
- Smart Contract Address（Ethereum）：0x9f284e1337a815fe77d2ff4ae46544645b20c5ff
Darwinia Mainnet（not available）
Spec: Native
Precision: 9
Smart Contract Address: /
The initial supply of KTON is 0, and it can only be obtained by locking RING. There is no other distribution channel. KTON can be traded and transferred.
Understand KTON
Darwinia has two tokens, RING and KTON, but they are not actually a peer relationship, but a primary-secondary relationship. RING is the native token, and KTON is the symbol of tokenized commitment.
On top of that, the initial supply of KTON is 0, and it can only be obtained by locking RING. There is no other distribution channel. KTON has no impact on the function of the Native Token RING.
That’s what distinguishes our token design from others but it is always misunderstood.
The reason for adopting dual-tokens design is based on our understanding of the current POS consensus system. Many traditional POS mechanisms are based on the design of a token age. The so-called token age is how long have you held the token, and then generates the proof of stake, but we believe that this is not the best practice. We believe that the best practice is the future commitment which means how long you promise to hold the token in the future.
KTON is designed based on this theory and KTON can also be bonded for staking.
What’s next?
KTON is a certificate of long-term commitment, which is regarded as long-term interest binding, so governance is one significant user case.
After the Darwinia cross-chain token bridge get launched, especially after the cross-chain function is available for other FTs or NFTs, these tokens need to be registered on the bridge to allow ordinary users to transfer the assets.
Projects and Dapps are expected to register with KTON(notice, regarding whether it needs to be renewed every year, not determined yet), and the paid KTON will be automatically burned by the contract.
The current design principle is mainly for distinguishing the positioning of RING and KTON.
Specific details may get revised.
How to staking?
In Darwinia Network, RING and KTON can both be bonded for staking, plus KTON is generated by locking RING when staking. Thus, the whole staking system is more complicated than the general staking, illustrated by the following diagram:
In the system, in order to more accurately identify the contribution ratio of RING and KTON to staking, we introduced the concept of POWER similar to the POW system to represent the contribution of RING and KTON to staking.
In the default setting, the amount of POWER contributed by RING and all KTON is the same, and the POWER of each user is calculated by the ratio of the tokens participating in staking to all staking tokens.
Getting back to the economic model, users who hold both RING and KTON can be bonded for staking and can get benefits. Once you start staking, you can get rewards and benefits. It will take 14 days for RING and KTON to be distributed to users’ account after ending the staking.
The sum of the total revenue of staking available to all users is the total annual inflation of the Darwinia Network. The total income generated by staking is initially distributed to all users who bonded RING KTON for staking in a ratio of 1:1.
In other words, if the initial number of KTON is small, staking participant who bonded can get relatively higher benefits.
How to get KTON?
Staking here at [Evolution Land] — [Gringgotts]: https://www.evolution.land/land/1/bank/save-ring
How to trade KTON?
Algorithm of Binding RING for KTON
Users can lock a certain amount of RING for a predefined period of time in exchange for KTON in return. Basically bind 10,000 RING for 12 months to get 1 KTON.
1–36 variable integer months(30days) as the locking period are allowed. See the following table of rewarded KTON amount according to locked period.
The Darwinia mainnet has not yet been launched, before the mainnet launch, users have been able to lock RING to obtain KTON in the blockchain game Evolution Land, so there will be a certain supply of KTONwhen the mainnet is launched. The earliest design to obtain KTON by locking the RING appeared in the Evolution Land Gringott.
For more information, , please refer to the Gringott KTON model: https://talk.darwinia.network/wiki
