As we have been releasing our design ideas of the Klondike protocol, we had many DeFi angels, degenerates, and VCs reach out to us with the interest of funding the project. However, after observing the success of DeFi platforms in 2020–2021 and getting the early community feedback… we have set on a path to not raise. Here are a few reasons why.
The launch model has to be as fair as possible
With the launch model like Basis Cash, there is little room for premine or any foundation allocation. It would skew the numbers and make the participation unfair. We play to launch in a farm-way where liquidity providers, who take all the risk, are the owners of the protocol.
Flexibility and agility at the core
As a consequence of the point above, the development has to be super flexible and agile. This means, next to staying anonymous and not having access to any of the funds, the community has to be able to take over any direction they see fit. Teams composed of vertical communication internally and externally have significantly under-performed in this cycle.
And also…
It’s really not that hard, what we made.
Yes, we have a few interesting ideas on what the future holds for KLON. We will be sharing more of them later, as you can already get a glimpse here. So what we have is a Basis implementation with their UI, a couple new contracts, and new math. It’s fairly easy as it is. Is that bad? No, we are simply honest about it. Because math is where the actual sauce is.
You can find the general model of Stabilization Fund below, in our case this entity is a smart contract with a few tweaks. TBA tomorrow.
As we move further and the community grows, we would be open to ideas on new product features, we will be launching new synthetic rebases and build up reputation to be allowed in the Citadel of Curve Finance, Yearn Finance, Alpha Homora, and other outstanding DeFi projects. The key is to be lean and keep shipping. Step by step.
Well, and also — who would trust an anon dev?! Right?
No fundraise. But… testers!
Liquidity begets liquidity — that’s at the core of any synthetics protocol. So there should be attention and some interest in the protocol from day 0. It better be sustained while staying fair. As a result, we went with invite codes and sent them around DeFi groups, angels who have helped us, and… they were gone within a few hours. 100 codes. Wow!
The testers will receive 0.02 kBTC in their wallets they have registered (so 100 wallets with 0.02 kBTC each), and they will be committed to supporting the protocol and have the chance to mine KLON in the first wave. However, anybody can get kBTC off the market and join the farming from the first second.
We believe this makes the distribution as fair as we could have done it — while keeping rewards very small with a starting market cap of < $70,000 in BTC terms. This small nominal amount is needed to bootstrap the liquidity in a better way than $100 worth of tokens others start with.
There will be no premine of KLON, it starts at 0. As we add more assets and seek integrations in the DeFi space, we look forward to the community bringing new ideas forward.
We will keep 3 wallets to ourselves. It’s a minor share, but at least we will have some “say” in the direction. KLON won’t have any premine.
The launch article is coming up tomorrow, stay tuned! We will explain the launch model, the token model, the next steps, and all that.
Prepare your WBTC, degens…
