Epoch 1 has begun and the first KyberDAO Proposal is LIVE on Kyber.org! This is the first time KNC holders can cast an on-chain vote on protocol decisions via the KyberDAO.
Since our Katalyst launch just 7 days ago, over 3400 unique addresses have staked 56M KNC (US$80M+) on the KyberDAO, representing about 24% of the total KNC supply! We’re truly humbled by the immense support shown by the Kyber and DeFi community, and we look forward to growing Kyber together, starting with our first KyberDAO proposal in Epoch 1!
Start voting on KyberDAO Proposals
Please make sure you bookmark/favourite this official url https://kyber.org/
If you had previously staked KNC in Epoch 0, you can start voting on KyberDAO Proposals in Epoch 1, which ends in 2 weeks (on 28th July). If you are able to vote on ALL Epoch 1 proposals, your full reward (in ETH) will be distributed in Epoch 2. Proposals can last between 4 days to 2 weeks, but they have to start and finish within the same Epoch. In Epoch 1, the first proposal lasts only 10 days.
Requirements for voting in Epoch 1
You need to have staked KNC in Epoch 0 (before Epoch 1 started). You need ETH to pay for gas costs. Votes are done on-chain on Ethereum hence gas is required. Staking and claiming rewards also require gas. View the average gas costs here.
How to vote
Visit kyber.org Connect your Ethereum wallet to Kyber.org using Metamask, Ledger, Trezor, WalletConnect, WalletLink, or Keystore.
Kyber.org is a mobile-optimised decentralized application that is built to work on any standard platform with Web3 connectivity. Examples include the DApp browsers in popular mobile crypto wallets such as Trust, Enjin, Status, Coinbase mobile, imToken, and Alpha Wallet etc.
Watch this tutorial video:
Using Ledger through Metamask
1. Install the Metamask browser extension, create an account, backup/write down your account seed phrase.
2. Click Connect Hardware Wallet, then select Ledger.
3. You will be able to use Metamask (with your hardware wallet address) to connect to https://kyber.org/
Make sure you have also enabled contract data on your Ledger.
BRR-1: The First Burn, Reward, Rebate (BRR) Proposal
The first proposal on the KyberDAO is a Burn/Reward/Rebate (BRR) proposal to decide if there should be changes to the existing network fee parameters. Network fees are collected from trading activities on Kyber Network, and each parameter is critical to the long-term success of Kyber Network. This is one of the most important topics we will be regularly discussing and voting on (for almost every Epoch).
This first BRR proposal has been labelled as BRR-1 and will last for ~10 days.
The current consensus on the initial BRR network fee parameters is:
- B | 5% will be used for purchasing KNC tokens and burning them
- R | 65% will go to Voting Rewards
- R | 30% will go to Reserve Rebates for Fed Price Reserves (FPRs)
Based on the new BRR framework the team has developed (explained here and later in this post), we proposed the following four options for the community to vote on during the first BRR proposal in Epoch 1.
You are able to vote for only one of the options below.
For example, for Option B, the Pro-Burn option, Burn is the preferred parameter, and Reward and Rebate are the remaining two parameters. Burn will increase by 5% to 10%, and Reward will decrease to 61.6%, while Rebate will be 28.4%.
Burning KNC: Voters decide on the % of network fees used to purchase KNC off the market and burned, permanently decreasing the supply of KNC.
Voting Rewards: For voting on important proposals that help Kyber succeed, KNC holders receive rewards in ETH from part of the network fees collected through trading activities on the network.
Reserve Rebates: By rewarding selected Reserves based on their performance (i.e. amount of trade volume they facilitate), it helps to drive greater volume, value, and network fees. Currently, only Fed Price Reserves (FPR) will be eligible for rebates.
The community is highly encouraged to discuss this BRR-1 proposal (and even the process itself) on Discord!
How did we get these different percentages? Below we explain the starting framework we used to derive the 4 options.
Starting Framework: BRR (Burn, Reward, Rebate) Proposals
As the KyberDAO maintainer, the Kyber team has proposed the starting framework for BRR proposals. This framework was used in BRR-1 above.
- In every BRR campaign, there will always be 4 options, one retaining the status quo, the other 3 preferring one specific parameter
- Allocation for the new preferred parameter will increase by 5%.
- The 5% increase would lead to a corresponding decrease in the % allocation of the remaining two parameters, in accordance to the original ratio between those two parameters.
Exact formula used in BRR-1:
1/ Status Quo
- New Burn % = Original Burn + 5%
- New Reward % = Original Reward/(Original Reward + Original Rebate) * [100 — (Original Burn + 5%)]
- New Rebate % = Original Rebate/(Original Reward + Original Rebate)* [100 — (Original Burn + 5%)]
- New Reward % = Original Reward + 5%
- New Rebate % = Original Rebate/(Original Rebate + Original Burn) * [100 — (Original Reward + 5%)]
- New Burn % = Original Burn/(Original Rebate + Original Burn)* [100 — (Original Reward + 5%)]
- New Rebate % = Original Rebate + 5%
- New Reward% = Original Reward/(Original Reward+ Original Burn) * [100 — (Original Rebate + 5%)]
- New Burn % = Original Burn/(Original Reward + Original Burn)* [100 — (Original Rebate + 5%)]
More information can be found in this Github gist.
BRR (Burn, Reward, Rebate) ratio will be voted on in every epoch.
This BRR proposal process will provide a clear ongoing agenda for stakeholders to adjust the status quo, allowing a constant polling of the community and dynamic governance of the network fee allocation. Custom proposals suggesting major updates can be created as part of the Kyber Improvement Proposal (KIP) process.
Important Next Steps
I’ve voted. What should I do after voting? How can I claim rewards?
Make sure you vote on ALL the proposals available in Epoch 1. After casting your votes, please wait for Epoch 2 to start to claim your ETH rewards. You cannot claim Epoch 1 rewards immediately. If any ETH rewards are distributed to you in Epoch 2, they will always be there, so you can claim them at a later date. Do note that rewards from Epoch 0 were all burnt.
You can also stake more KNC now if you want to increase your voting power in Epoch 2. The voting rewards meant for this additional KNC will only be distributed in Epoch 3 (since you have to first vote in Epoch 2).
For a very rough ETH reward estimate, you can try out these unofficial reward calculators created by the Kyber community:
What if I didn’t stake any KNC in Epoch 0? Can I vote now?
Unfortunately, you cannot vote on any proposals in Epoch 1 if you didn’t stake KNC earlier. However, to prepare to vote in Epoch 2, you can start staking KNC anytime in Epoch 1. Epoch 1 lasts two weeks, ending on 28th July (Do note that BRR-1 proposal lasts 10 days and ends earlier). In Epoch 2, you will be able to vote on the next batch of KyberDAO proposals, and claim ETH rewards in Epoch 3.
What happens if I withdraw my KNC after voting?
You can withdraw your KNC at any point during the Epoch. Kyber does not hold your funds. However, your voting power (and hence rewards) for that Epoch will be counted as the lowest amount you had after voting.
Example: In Epoch 16, Tom voted while having 15K KNC, then midway through the epoch he withdrew 3K KNC. Although he voted while having 15K KNC, his voting power will only be counted as 12K KNC. So in Epoch 17, he will receive rewards only for 12K KNC. Read this for more information.
Delegating your KNC voting power to third-party Staking Pools
To prepare for Epoch 2, you can choose to delegate your KNC voting power by using a third-party staking pool (instead of voting on your own on kyber.org). Please do your research on the different staking pools available. Here are some non-custodial, trustless options that will be live soon:
- Unagii.com by StakeWithUs
- StakeDAO by Stake Capital
- Kyber Community Pool by DeFi Dude, Sasha, and Wayne
- xToken by Michael Cohen (already live)
Alternatively, a custodial option would be Binance Staking.
We hope to increase the range of both custodial and non-custodial staking options for KNC holders to suit different needs. Stay tuned!
Kyber Improvement Proposal (KIP) Framework
As the DAO maintainer, the Kyber team is also scoping out a Kyber Improvement Proposal (KIP) framework to allow the community to discuss and propose changes for the benefit of the protocol.
- The Kyber team will soon submit the first KIP to facilitate discussions around its own starting framework.
- Please note that KIPs are unique proposals and different from the BRR proposals, which are more regular and are meant to follow a standard format and process.
- If required, the Kyber team will help submit a KIP to update the existing BRR process.
- KIPs have to be approved by the DAO maintainer (Kyber team) before being scheduled for formal on-chain voting on the KyberDAO.
- Future changes will need to be first proposed as KIPs and reviewed as a community.
- The community is highly encouraged to actively discuss all KIPs.
We look forward to working with the DeFi ecosystem to govern and increase adoption of our on-chain liquidity protocol and enhance liquidity for DeFi!
If there are any suggestions, please raise them on the #KyberDAO channel on Discord or submit a post on Reddit. You are highly encouraged to join our official Discord server, as well as our KyberDAO twitter account and KyberDAO Telegram for governance-related discussions and updates!
For developers, you can read our staking documentation on Github.
About Kyber Network
Kyber’s on-chain liquidity protocol allows decentralized token swaps to be integrated into any application, enabling value exchange to be performed seamlessly between all parties in the ecosystem. Using this protocol, developers can build innovative payment flows and applications, including instant token swap services, ERC20 payments, and financial DApps — helping to build a world where any token is usable anywhere.
Kyber is the most used and integrated protocol in decentralized finance (DeFi), with over US$1 billion worth of transactions facilitated since its inception. Kyber supports over 80 different tokens, and powers over 100 integrated projects including popular wallets Trust, Enjin, Argent, Eidoo, and the HTC Exodus smartphone, as well as DeFi platforms Nuo, Fulcrum, DeFiSaver, InstaDApp, Set Protocol, Melon, and many others.
For updates, follow KyberDAO on
Important KyberDAO Information
- KyberDAO FAQs
- Katalyst Launch Announcement
- Pre-DAO Poll: Deciding Kyber’s Initial Protocol Parameters
- KyberDAO: Staking and Voting Overview
- KyberDAO: Options for Pool Operators
- Protofire Trustless Smart Contract Proxy for the KyberDAO
- Protofire Trustless Smart Contract Proxy Github Documentation
- KyberDAO Partner: StakeWithUs
- KyberDAO Partner: Stake Capital
- KyberDAO Partner: ParaFi Capital Invests in KNC to Participate in Governance
- Kyber Community Pool by DeFi Dude and other community members
- Katalyst: Kyber Protocol Upgrade and 2020 Plans
- KyberDAO FAQ
- Follow KyberDAO on Twitter
- KyberDAO Staking Address on Etherscan
- KyberDAO Epoch Stats API