KyberDAO initiates the first governance vote to elect a new allocation scheme for platform trading fee revenue.

The decentralized liquidity protocol Kyber Network has initiated the first governance proposal (BRP-1) after the establishment of the decentralized governance organization KyberDAO. This proposal aims to vote on the future fee distribution mechanism (BRR rate) on the Kyber platform.

KyberDAO Launches First Governance Proposal

According to the official article released, the initial allocation of Kyber platform fees is as follows: 5% for burning circulating KNC, 30% as liquidity provider rewards, and 65% as staking rewards. However, with the completion of the Katalyst protocol upgrade and the formal establishment of the decentralized governance organization KyberDAO, KNC holders can stake KNC to submit new proposals or participate in voting to adjust the percentage distribution of the transaction fees. The transaction fee distribution options in BRP-1 are as follows:

• 5% for burning circulating KNC, 30% as liquidity provider rewards, 65% as staking rewards
• 10% for burning circulating KNC, 28.4% as liquidity provider rewards, 61.6% as staking rewards
• 4.3% for burning circulating KNC, 25.7% as liquidity provider rewards, 70% as staking rewards
• 4.6% for burning circulating KNC, 35% as liquidity provider rewards, 60.4% as staking rewards

Currently, the allocation scheme with the highest votes (48.53%) is:10% for burning circulating KNC, 28.4% as liquidity provider rewards, 61.6% as staking rewards. Compared to other options, this option significantly increases the burning proportion, indicating that KNC holders prefer to enhance token scarcity and long-term value rather than increase cash flow.

There are 9 days and 21 hours left until the voting deadline. Participants who have staked are reminded to vote as soon as possible to receive voting rewards.

KNC Long-Term Value

As a liquidity pool, Kyber Network has maintained a high adoption rate and trading volume. Especially in Q2 of this year, DeFi projects have become the market focus, coupled with the long-awaited Katalyst protocol upgrade, its token KNC has experienced a significant surge, with the highest increase exceeding 900% compared to the beginning of the year. Although the current price seems to be at a high level, with signs of a retracement, many people still choose to stake KNC to participate in protocol governance and earn platform transaction fees and governance voting rewards.

According to official data, there are currently over 3400 addresses staking over 52 million KNC (valued at over $80 million) on KyberDAO, accounting for approximately 24% of the total KNC supply.