As per a post on Kyber Network's official blog, the KyberDAO has gone live on the Ethereum mainnet. KNC holders can now stake their tokens, participate in governance, and collect trading fees.
KNC holders who stake their tokens will have the ability to vote on changes to Kyber Network's protocol, such as the distribution of trading fees. Additionally, those who actively vote on proposals will earn a share of the exchange's fees, paid out in ETH.
The team conducted a preliminary survey on their Discord to see how the community would like to see the fees distributed and the results were:
- 65% to staking rewards
- 30% to reserve rebates for fed price reserves
- 5% to purchase KNC tokens and burn them
A proposal will be submitted in Epoch 1 where token holders will be able to vote on minor adjustments to these values.
Today marked the beginning of KyberDAO genesis Epoch (Epoch 0), which will last one week and end on July 14th. All following Epochs will last two weeks.
Token holders who stake their tokens this week will be able to vote on proposals submitted during Epoch 1, and the first batch of rewards will be distributed in Epoch 2.
Stakers must vote on all proposals in order to receive the full reward. If there are two proposals during an epoch and you only vote on one, you will only get half of the rewards.
Voting occurs on the Ethereum blockchain, hence a small amount of ETH is required to pay the gas fee for each transaction. Depending on how much KNC you have staked, the gas fees paid to vote may exceed your rewards.
In that case, it may be worth paying a small fee to delegate your vote to someone else. If you choose to do so, be aware that the rewards will be sent directly to your delegate, and it is then their responsibility to share them with you.
You can purchase KNC tokens on decentralized exchanges such as Uniswap, Bancor, and of course KyberSwap. You can then stake the tokens at Kyber.org using an Ethereum wallet, such as the Metamask browser extension.
Check out Kyber's video tutorial to learn how to stake, vote, delegate, and claim rewards:
Also worth mentioning is the xToken project, which is giving investors the option to combine staking, governance, and claiming fees into a single ERC-20 token.
If you have any questions, be sure you check out KyberDAO's FAQ. If your question is not answered there, feel free to ask in their Discord server in the #kyberdao channel.
