We’re looking for community support on our way to Klondike V.2 and tokenomics update.
On Wednesday March 17 we’ll share the vote at https://snapshot.org/#/klondike.eth on token swap from KLON to the new token — DIKE.
We want to get your feedback prior to the vote start.
Why do we need an upgrade and token swap?
Initially KLON<>WBTC pool worked perfectly to bootstrap liquidity, but now it doesn’t benefit the protocol and the initial farming mechanism can’t be changed (yes, it’s smart contracts — no admin keys here). This pool works as designed — it gives some liquidity, but also dilutes the holders of KLON token. The dilution is higher then the value that it creates.
What do we propose to do?
We want to perform the token swap to get the control over new farming mechanics on the side of the protocol. The users will get the new token — DIKE (1–1 to KLON).
In DIKE(ex-KLON)<>WBTC pool we want to reduce the rewards.
We don’t want to reduce the rewards drastically and we’ll change it from 689 KLON tokens per day to 200 DIKE tokens per day for the next month. It will leave space for good returns for farmers in the pool and later we want to reduce this numbers via community vote.
K-tokens farming will stay the same and any changes will be made only by community votes.
DIKE supply decrease
50% of KLON tokens (306,250) locked in timelock contract will be burned (we’ll send them to 0x0), it will decrease the DIKE supply.
The new token model value
The new boardroom will consist of three parts:
- DIKE(ex-KLON) staking — inflatory rewards;
- DIKE(ex-KLON)<>WBTC LP tokens staking — farming of DIKE and inflationary rewards for staking;
- Boost (will be added later) — DIKE stakers will be able to get boost via DIKE tokens lock.
At the beginning the proportion between DIKE and DIKE<>WBTC LP tokens staking will be 3 to 1.
V.2 contracts
The contracts are not deployed yet but you already can have a sneakpeek on GitHub, we’ll also be happy to hear your feedback.
