Tokenomics
The Kynex token (KNX) is the native utility and coordination engine of the protocol. It is engineered to facilitate a high-integrity ecosystem where value is directly correlated with market accuracy and platform utility. Unlike traditional governance tokens, KNX is deeply integrated into every transactional layer of the protocol, creating a robust feedback loop between platform growth and token demand.
Token Architecture & Supply Dynamics
KNX is built on a scarce-supply model designed to prioritize long-term value preservation over inflationary growth.
Supply Integrity: The protocol operates with a fixed maximum supply. There are no inflationary emissions or "infinite printing" mechanisms for liquidity rewards.
Non-Dilutive Growth: Value accrual is driven by organic demand for protocol services and programmatic deflation rather than speculative minting.
Design Philosophy: The tokenomics are governed by three axioms: Utility-Centric Demand, Programmatic Scarcity, and Performance-Aligned Incentives.
Core Utility & Operational Roles
KNX serves as the mandatory settlement and access medium for the entire ecosystem.
Market Orchestration
Creation Tolls: Market initiators must commit KNX to deploy new prediction contracts. This serves as a primary anti-spam filter, ensuring only high-signal markets reach the production layer.
Staking Denomination: All prediction pools are denominated in KNX. It functions as the "Unit of Conviction," where participants transfer KNX from incorrect to correct predictors based on objective on-chain outcomes.
Intelligence Gating
Access to the Kynex Intelligence Suite is tiered based on token commitment. High-level features—including real-time confidence scoring, advanced heuristic wallet filtering, and predictive alerts—require users to hold KNX.
Value Capture: Staking & Governance
The protocol employs a Fee-Sharing Staking Model. KNX holders who stake their tokens:
Earn Yield: Receive a proportional share of global protocol revenue (settlement fees, creation fees, and premium access fees).
Govern Parameters: Exercise voting power over critical protocol variables, including fee structures, treasury allocation, and smart contract upgrades.
The Closed-Loop Economic Model
The KNX token flow is a circular economy designed to reward participants while systematically reducing circulating supply.
Inflow: Fee Collection
Revenue is generated through three primary channels, all settled in KNX:
Settlement Fees: A percentage of the losing pool in every resolved prediction market.
Deployment Fees: Fixed costs for market initialization.
Subscription Fees: Recurring KNX payments for data access.
Outflow: Distribution & Deflation
Collected fees are routed via smart contract to three specific sinks:
KNX Stakers: Rewarding long-term supporters with real-yield.
Protocol Treasury: Ensuring sustainable funding for continuous R&D and security audits.
Strategic Incentive Alignment
Kynex moves away from the "Liquidity Mining" traps of the past, focusing instead on Performance-Based Economics.
Feature
Kynex Model
Traditional DeFi Model
Yield Source
Real Protocol Fees
Inflationary Token Printing
Participant Goal
Predictive Accuracy
Short-term Yield Farming
Incentive Type
Performance-Linked
Time-Linked (Passive)
Market Health
Volume & Signal Driven
Liquidity Mining Dependent
Sustainability & Risk Mitigation
The protocol is engineered to thrive without external subsidies.
Zero-Dependency: The ecosystem does not rely on perpetual "new capital" to pay out rewards; payouts are derived from the losing side of prediction markets.
No "Ponzinomics": There are no guaranteed APYs. Rewards are a direct function of platform usage and individual accuracy.
Anti-Speculation: By requiring the token for all core actions, we ensure that KNX is held by active users rather than passive speculators.
Token Distribution & Vesting
KNX distribution is designed to balance:
Long-term protocol sustainability
Contributor and investor alignment
Community ownership
Controlled supply release
All allocations are subject to on-chain vesting and time-locked contracts.
Total Supply
Fixed total supply: 100%
No inflation
No discretionary minting
Allocation Breakdown
Community & Ecosystem
35%
User incentives, market liquidity, ecosystem growth
Team & Core Contributors
10%
Long-term development and protocol stewardship
ILO
20%
Capital formation and early support
Treasury
15%
Audits, operations, partnerships, runway
Liquidity & Launch Ops
20%
DEX liquidity, launch stability
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