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Overview

KIRA’s economics are designed to ensure that its applications have access to the necessary infrastructure required to run, as well as the liquid capital required to boost economic activity. This is accomplished through a system of incentive engineering that rewards users, developers, executors, and verifiers.

Central to KIRA's economic architecture are several key mechanisms: the native token (KEX), which facilitates transactions and governance; Multi-Bonded Proof of Stake, a system that enables a diverse range of crypto assets to be staked; the Initial Liquidity Offering (ILO) for seamless dApp integration and liquidity provision, and a suite of economic policies tailored to incentivize participation and foster sustainable growth. These components work synergistically to ensure that KIRA's economy is robust, flexible, and adaptive to the needs of its users and the broader blockchain ecosystem.

  • Multi-Bonded Proof of Stake (MBPoS): MBPoS is a staking mechanism in SEKAI aimed at enforcing the network's Sybil resistance. It differentiates from typical Proof-of-Stake models by permitting the use of a diverse range of digital assets as staking collateral. This includes but is not limited to, native assets of the KIRA network, non-native assets originating from other blockchain networks such as BTC and ETH, NFTs, RWAs, LP tokens, and stablecoins, all subject to approval via governance proposals. Multi-asset staking increases the security of the network in the scenario where tokens originating from foreign networks add incentives for consensus participants to misbehave. Additionally, MBPoS natively issues liquid staking derivatives (LSD) for all staked assets boosting economic activity and access to assets for all KIRA L2 applications.
  • Initial Liquidity Offering (ILO): The ILO on KIRA is a strategic mechanism aimed at ensuring sufficient liquidity for decentralized applications (dApps) by engaging developers, users, verifiers, and executors in a unified effort towards the dApp's success. Through a governance proposal process, stakeholders commit KIRA's native token, KEX, to support the dApp, leading to the creation of a liquidity pool based on a Uniswap-style AMM and the issuance of LP tokens. This process is designed to align incentives, facilitate token economics with configurable parameters like token issuance, and maintain dApp operability through a collateral threshold and incentive structures for validators and liquidity providers, thereby fostering a supportive ecosystem for dApp development and launch.