Tokenomics
Overview
The LOP token is the native cryptocurrency of the Kilopi ecosystem, with a carefully designed tokenomics model that emphasizes deflation, utility, and community governance. The tokenomics of LOP are structured to ensure long-term sustainability, reward active participation, and create a deflationary supply that could increase the token's value over time. This document provides a detailed overview of LOP token distribution, supply mechanisms, and the economic principles that drive the Kilopi project.
Initial Token Supply and Distribution
The LOP token began with an initial supply of 50 billion tokens, which has been significantly reduced through strategic token burns. The distribution of the initial supply was designed to ensure that the Kilopi ecosystem could grow sustainably while rewarding early contributors and supporting future developments.
Initial Distribution Breakdown:
Community Allocation: A significant portion of the initial supply was allocated to the community, including early supporters, staking rewards, and incentives for ecosystem participation.
Development Fund: A portion of the tokens was reserved for the ongoing development of the Kilopi project, including funding for new decentralized applications (dApps), infrastructure, and partnerships.
Liquidity Provision: A specific allocation was designated for liquidity pools on decentralized exchanges to ensure the LOP token remains liquid and tradable.
Marketing and Ecosystem Growth: Tokens were allocated to support marketing efforts, ecosystem growth, and partnerships, driving the adoption of LOP tokens and the Kilopi ecosystem.
Team Allocation: There is no tokens was allocated to the founding team. Team is also considered as the community of the project and needs to develop/promote to earn LOP tokens.
Deflationary Model
One of the key features of LOP tokenomics is its deflationary model. The supply of LOP tokens decreases over time through a combination of community-driven token burns, weekly burns, and transaction-based burns within the ecosystem's dApps. This deflationary mechanism is designed to create scarcity, which can drive up the value of the remaining tokens.
Deflationary Mechanisms:
Community-Driven Burns:
First Burn: 45 billion tokens were burned following a community decision, reducing the initial supply to 5 billion tokens.
Second Burn: 1 billion tokens were burned out of the remaining 5 billion, further reducing the supply.
Weekly Burns:
2.5 million LOP tokens are burned every week as part of an ongoing effort to reduce the total supply.
dApp Transaction Burns:
Every transaction within Kilopi’s decentralized applications burns a small amount of LOP tokens. This applies to activities like staking, trading, and voting, ensuring that every interaction within the ecosystem contributes to the deflationary model.
Token Utility
The utility of LOP tokens is central to their value within the Kilopi ecosystem. LOP tokens are used across a wide range of decentralized applications, each of which adds to the token's demand and functionality.
Core Utilities of LOP Tokens:
Staking: LOP tokens can be staked in various dApps, such as the Collector application, to earn rewards and support the ecosystem’s security.
Governance: LOP token holders can participate in governance through the Kilopi D.A.O, voting on proposals and influencing the direction of the project.
Transactions: LOP tokens are used for transactions within the Kilopi dApps, including trading, liquidity provision, and in-game purchases within the Masters of Management game.
Incentives and Rewards: Active participants in the Kilopi ecosystem are rewarded with LOP tokens for their contributions, such as creating content, promoting the project, or building new applications.
Burn Mechanism: As part of the deflationary model, a portion of LOP tokens is burned with every transaction, reducing the total supply and supporting the token's value.
Circulating Supply and Liquidity
The circulating supply percentage of LOP tokens continues to increase due to the ongoing deflationary mechanisms. This reduction in supply is designed to create scarcity, which can drive up the token's value over time.
Circulating Supply Breakdown:
Current Circulating Supply: Following the initial burns and ongoing weekly burns, the circulating supply percentage of LOP tokens is now much higher than the original start.
Supply Reduction Through Burns: The continuous token burns ensure that the maximum supply decreases over time, adding value to the remaining tokens in circulation.
Liquidity Management:
Exchanges: LOP tokens are available on decentralized/centralized exchanges like those on Harmony Chain, Binance Smart Chain, and Solana. Liquidity pools are established on these platforms to ensure that LOP tokens remain accessible for trading.
Liquidity Provision Incentives: Users who provide liquidity to LOP token pairs on decentralized exchanges may receive rewards in the form of LOP tokens, further incentivizing liquidity provision.
Vesting and Lock-Up Periods
To ensure that the distribution of LOP tokens remains fair and aligned with the long-term goals of the Kilopi project, vesting schedules and lock-up periods are in place for certain token allocations.
Key Vesting and Lock-Up Details:
Staking Rewards: Users who stake LOP tokens may have lock-up periods during which their tokens are locked in the staking contract. These lock-up periods vary depending on the staking option chosen.
Development Fund: Tokens allocated to the development fund are released gradually to ensure that resources are available for ongoing and future development efforts.
Marketing Fund: Tokens allocated to the marketing fund are released gradually to ensure that resources are available for ongoing and future development efforts.
Governance and Community Involvement
Governance is a core aspect of LOP tokenomics, with token holders having a direct influence on the project's development and direction through the Kilopi D.A.O.
Governance Mechanisms:
Proposal Creation: LOP token holders can create proposals related to governance, development, or other strategic decisions within the Kilopi ecosystem.
Voting: Each LOP token represents a vote, allowing holders to weigh in on key decisions. Voting results are recorded on the blockchain, ensuring transparency.
Community-Led Initiatives: The Kilopi community plays an active role in proposing and implementing new initiatives, with LOP tokens serving as the primary currency for governance activities.
Future Developments and Sustainability
The Kilopi team is committed to maintaining the sustainability of the LOP token through ongoing development and strategic initiatives.
Future Developments:
Expansion of dApps: The Kilopi ecosystem will continue to expand with new decentralized applications that utilize LOP tokens, increasing demand and utility.
Cross-Chain Integrations: Kilopi aims to integrate LOP tokens with additional blockchains, enhancing accessibility and broadening the token’s user base.
Enhanced Tokenomics: The team will continuously assess and improve the tokenomics of LOP to ensure that it remains sustainable and aligned with the project’s long-term goals.
Conclusion
The LOP tokenomics are designed to create a deflationary, utility-driven cryptocurrency that supports the growth and sustainability of the Kilopi ecosystem. Through strategic burns, broad utility, and active community involvement, the LOP token is positioned to play a central role in the future of decentralized technology. As the Kilopi project continues to evolve, the tokenomics of LOP will remain a key factor in driving its success and delivering value to its community.
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