Mainnet Research Series: An In-Depth Analysis of Minimum Staking Amount
Read more: https://bit.ly/3mwRVSr
As KardiaChain is inching toward Mainnet, we hope that you have found the first two papers of the series helpful in understanding our thought process to estimate a range of fair staking return rates (APRs) for the network participants. Today, we would like to offer the finale report on this subject — KAI Block Reward Logistics by KardiaChain CFO Anthony Vo. The last part will give you a better understanding of how the team will distribute the block rewards as well as the minimum staking for each role in the Mainnet platform.
To start, the total designated KAI for block reward will be 500 million and that we will distribute this amount for five years. The key challenge was to derive a distribution schedule to ensure that the newly generated KAI will not disturb the balanced token economy. The added KAI supply should accompany KardiaChain’s product release pipeline to maximize the potential benefits for our future token holders and stakers. Through diligent research, our team determined that a uniformly linear distribution schedule (that is an equally annual distribution of 100 million). It will fit best for our purpose due to its ease of implementation, community predictability, and highest ROI (based on simulated results & product release).
Furthermore, we also leveraged data that we collected from TESTNET and Peer research to develop assumptions for determining the fair minimum staking amount for contributed roles in our network. Specifically, we concluded that a delegator needs to stake a minimum amount of 25,000 KAI and a validator requires a minimum amount of 12.5M KAI to ensure that the network will function efficiently as well as the KAI token will operate within a sustainable and healthy circulating range.
As a conclusion of this Paper Series, we would like to thank you our community for the strong support and your investment in us. We hope that you enjoy these research papers and join us on the journey to mass adoption for KAI, which begins with the launching of our Mainnet platform.