KEX, KIRA’s Native Token

Overview

note

SEKAI uses a shared clock to define the inflation rate of KEX, rather than relying on block time. This means that the amount of block rewards given out can fluctuate depending on network latency, block proposer timeouts, and other factors. This design choice was made to prevent Consensus nodes from attacking the network by speeding up the block speed in order to increase KEX inflation, while simultaneously rejecting incoming transactions. While this approach may seem unfair at first glance, it ensures that over the long term, everyone participating in the network will receive their fair share of rewards on average.

The inflation rate of the native asset KEX is determined by governance. Inflation is used to attract activity and participation on the network, as well as to provide security through incentivizing stakeholders to hold valuable assets. The Token Aliases Registrar module also allows the governance to define the distribution of incentives in order to maintain the relevance of KEX. This ensures that the native asset remains an attractive and desirable token for users and stakeholders to hold and use. By incentivizing participation and holding, the network is able to maintain a high level of security and value.

Governance can configure KEX’s inflation rate with the following network properties:

• inflation_rate - KEX inflation percentage
  • Default: TBD
  • Minimum: 0
  • Maximum: 50
• inflation_period - Period of time in seconds over which current KEX supply is inflated by inflation_rate
  • Default: 31557600 (=1 year)
  • Minimum: 2629800
  • Maximum: 31557600

Example over a period of 3600 seconds: For a starting KEX token supply at $\small{T1}$ of 300500000, an inflation_rate of 15%, and an inflation_period of 31557600 seconds, all delegators staking their coins from $\small {T2-T1 = 3600}$ seconds would cumulatively qualify to claim $\small{ \dfrac{300500000 \times 0.15}{31557600} \times 3600 \approx 5142}$ KEX at $\small{T2}$.

Kex Economics

Metrics	Details
Initial token supply	300 000 000
Current circulating supply	Real-time circulating supply available here: circ.kira.network
Maximum token supply	None. Can be capped by governance.
Token inflation	18% annual rate by default.
Token allocation & distribution schedule	All relevant information are available here.
Minimum stake for consensus node	No minimum
Active set minimum	No minimum