Tokenomics
$KSKD Token Overview
$KSKD is Kaskad's native utility and governance token. It has a fixed supply of 1,000,000,000 (1 billion) tokens, minted at deployment with no inflation mechanism. No additional tokens can ever be created — this is enforced at the contract level.
$KSKD is not an equity token, a revenue-sharing instrument, or a security. It confers no ownership rights, no claim on treasury funds, no profit distribution, and no revenue entitlement.
Token Functions
$KSKD serves three protocol functions:
Governance Medium
Holders who stake $KSKD and maintain an active liquidity position can participate in bounded governance — voting on parameter adjustments within predefined ranges.
Incentive Access Key
Staking $KSKD and participating in governance can unlock additional incentive tiers for active suppliers and borrowers. The token is a prerequisite for enhanced reward eligibility, not a source of passive yield.
Coordination Tool
$KSKD aligns long-term participants around protocol health. The staking and voting mechanisms reward sustained engagement over speculation.
Token Distribution
| Allocation | % | Tokens | Purpose |
|---|---|---|---|
| Activity Incentives | 39% | 390,000,000 | Epoch-based rewards for suppliers and borrowers |
| Community & Ecosystem (Phase 1) | 20% | 200,000,000 | Community development, no insider access |
| Ecosystem Liquidity (DEX) | 10% | 100,000,000 | DEX liquidity provisioning |
| Team | 12.5% | 125,000,000 | Core team compensation (multi-year vesting) |
| Ecosystem Liquidity (Listings) | 8% | 80,000,000 | Exchange listings and market-making |
| Community & Ecosystem (Phase 2) | 3.26% | 32,600,000 | Continued community development |
| Advisors | 3% | 30,000,000 | Advisory services (performance-based vesting) |
| Institutional Participation Program | 3% | 30,000,000 | LP incentives for institutional liquidity providers |
| Commitment Incentives | 1.24% | 12,400,000 | Early commitment rewards |
Protocol Support + Community = 84.5% of total supply.
Team + Advisors = 15.5% of total supply.
Vesting Schedules
| Allocation | TGE Unlock | Cliff | Linear Vesting |
|---|---|---|---|
| Community Round 1 | 10% | 6 months | 18 months |
| Public Round 2 | 20% | 3 months | 12 months |
| Team | 0% | 9 months | 36 months |
| Advisors | 5% | 6 months | 21 months (performance-based) |
Team tokens have the longest vesting period (36 months with a 9-month cliff and zero TGE unlock), ensuring long-term alignment with protocol health.
Emission Schedule
The 39% activity incentive allocation (390M tokens) is released over a 35-month emission curve across four phases:
| Phase | Period | Rate | Monthly Emission |
|---|---|---|---|
| Phase 1 | Months 0–6 | 0.33%/month | ~3,300,000 tokens |
| Phase 2 | Months 6–12 | 0.66%/month | ~6,600,000 tokens |
| Phase 3 | Months 12–18 | 1.00%/month | ~10,000,000 tokens |
| Phase 4 | Months 18–35 | 1.59%/month | ~15,900,000 tokens |
The emission curve is designed to scale with protocol maturity — starting conservatively during the bootstrapping phase and increasing as the protocol reaches critical mass. Emissions that go undistributed (due to low utilization or unclaimed rewards) are not forced into circulation; they return to the DAO Treasury.
Supply Adjustment Mechanism
Kaskad includes a governance-directed supply calibration mechanism. This is not a buyback program and does not involve burning tokens. Instead, it allows governance to redirect undistributed emissions or treasury allocations to stabilize token supply dynamics.
The mechanism operates within a bounded range: adjustments are capped at 5% of the 30-day average protocol activity. This prevents any single governance action from creating outsized market impact.
Token Holder Rights
To be explicit about what $KSKD does and does not grant:
$KSKD holders have:
- Governance participation rights (if staking + active liquidity position)
- Incentive eligibility (if meeting activity thresholds)
- Protocol coordination influence
$KSKD holders do NOT have:
- Any claim on treasury funds
- Any revenue entitlement
- Any profit distribution rights
- Any equity or ownership in POW Incentives S.A. or any other entity