Staking & Rewards
The Incentive Layer
Aligning economic incentives with predictive accuracy.
The Kynex tokenomics model is designed to reward signal accuracy rather than mere volume. It incentivizes users to provide correct information to the market, effectively crowdsourcing market intelligence.
The Stake-to-Predict Model
Participants do not just "bet"; they provide liquidity to an outcome.
Conviction Staking: Users stake KNX (or stablecoin collateral) into outcome pools.
Counterparty Liquidity: The losing pool serves as the yield source for the winning pool. If you are wrong, your stake essentially pays the users who were right.
Accuracy-Based Distribution
Yield is not inflationary; it is redistributive based on merit.
Pro-Rata Payouts: Rewards are calculated based on the user's share of the winning pool relative to the total pot.
Signal Weighting: Early stakers (who identified the trend before it was obvious) secure better odds, and thus higher potential ROI, rewarding early signal detection.
Protocol Revenue & Fee Sharing
Sustainability is driven by a fee-capture model that aligns the protocol's success with token holder value.
Market Fees: A small percentage of every settled market is captured by the protocol.
Staker Distributions: These fees are systematically distributed to KNX stakers, creating a tangible yield for holding the governance token.
Treasury Accrual: A portion is allocated to the DAO treasury for long-term development and insurance funds.
The Virtuous Cycle
This module creates a positive feedback loop:
Better Data: Attracts sharper analysts.
Sharper Analysts: Create more efficient, accurate markets.
Accurate Markets: Generate higher volume and fees.
Higher Fees: Increase the value of the network and the reward for participation.
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