Tokenomics
3. KNZX Token: The Backbone of Koinz Exchange Ecosystem
The KNZX token serves as the backbone of the Koinz Exchange ecosystem, enabling a wide range of functionalities, such as decentralized governance, platform utility, and incentivization programs. In this section, we will provide an overview of the token’s allocation, tokenomics, and its various roles within the Koinz Exchange ecosystem.
3.1 Token Allocation
A total of 1 billion KNZX tokens will be minted at genesis, with no increase thereafter. The token allocation is designed to be fair, transparent, and sustainable, acknowledging and rewarding early contributors, advisors, and the team behind the project. The allocation is as follows:
*Unsold tokens during the private sale, and public sale will be locked for 1 year. After that; the DAO members will decide what happens to these unsold tokens.
3.1.1 Use of Funds
Funds collected from private token sale and public token sale campaigns will be used as follow:
3.2. Tokenomics
To ensure the economic viability and sustainability of the project and incentivize long-term KNZX holding, Koinz will implement the following policies:
- Tokens allocated to the Team will be subject to 6 months cliff period, and 3 years linear vesting period after the public sale campaign is over
- Tokens allocated to Advisors, Early Contributors, Strategic Partners will be subject to 6 months cliff period, and 2 years linear vesting period after the public sale campaign is over
- Tokens allocated to Private sale will be subject to 6 months cliff period, and 3 months linear vesting period after the private sale campaign is over
- Tokens allocated to Community building, Airdrops, and Bounties will be subject to 6 months cliff period, and 3 months linear vesting period after the public sale campaign is over
- The DAO will counter inflationary pressures, stimulate ecosystem growth, and maintain platform stability.
- The DAO will have the power to devise and implement token burn schemes. If it does decide to do so, the DAO will take full responsibility for the buy and burn programs it implements and may or may not execute scheduled and unscheduled token burns at its discretion.
3.3. KNZX Functions
The KNZX token plays a crucial role in the Koinz Exchange ecosystem by enabling various functions, including governance, utility, and incentivization programs.
3.3.1. Governance
As a DAO governance token, KNZX empowers token holders to propose and vote on critical decisions regarding the Koinz platform. This may include listing new cryptocurrencies, appointing or dismissing supervisory and advisory board members, adjusting fees, and integrating new features.
3.3.2. Utility
KNZX can be used to pay for exchange fees at discounted rates, further incentivizing token vesting, stabilizing the platform, and contributing to its growth. The token will function as the local currency on the Koinz platform and will be convertible to fiat, like all other cryptocurrencies listed on the Koinz exchange.
3.3.3. Staking and Voting Power
KNZX token holders can stake their tokens for a predetermined period to increase their voting power in governance decisions. This rewards long-term commitment and strengthens the ecosystem by engaging dedicated community members in decision-making processes.
3.3.4. Tiered Membership Benefits
A tiered membership system based on KNZX holdings will be implemented. Users holding more tokens can unlock additional benefits, such as higher trading fee discounts, priority live support, and access to exclusive research and analysis reports and other valuable material.
3.3.5. Incentive Programs and Cross-Platform Collaboration
Koinz will run incentive programs like trading competitions, treasure hunts, airdrops, referral bonuses, and solicit novel incentive suggestions from the community. Users and contributors can earn additional KNZX tokens by participating in promotional activities and driving platform growth. Additionally, KNZX token holders can access exclusive offerings or services on partner platforms, such as Initial DEX Offerings (IDOs), discounted fees for token swaps, or integration with decentralized applications (dApps).
3.3.6. Platform Feature Prioritization
KNZX token holders are empowered to participate in prioritizing platform improvements and feature development. Token holders will be able to vote on upcoming platform updates and additions, ensuring that the Koinz ecosystem continually evolves to meet the needs of its user base.
3.3.7. Ambassador Program
Koinz Exchange will create an Ambassador Program to reward KNZX token holders generously for promoting the Koinz ecosystem through content creation, social media engagement, and hosting educational events. This initiative will expand the platform’s reach and reinforce its reputation as a community-driven project.