Kava Governance Announcement

Shaping the Future of Kava, Hard, & Swap

Update: Kava Labs launched a rebranded product portfolio in late August 2021, and the following archived article contains outdated information. Application rebrands on the Kava Platform are as follows: Kava CDP is now Kava Mint; Hard is now Kava Lend; Swap is now Kava Swap. To learn more about the rebrand, please read the announcement.

Governance and an active community are cornerstones of a successful DeFi project. Anyone who has $KAVA staked to a validator has the opportunity (and responsibility) to shape the future of the Kava ecosystem. Recently, the community has used governance to accomplish important tasks, like creating a SAFU Fund and improving $USDX price stability. When Kava Swap launches on August 30th, $HARD and $SWP will function as governance tokens for their respective protocols as well as stores of value. Also, all future applications Kava Labs develops will include governance. This step brings increased decentralization to the Kava ecosystem.

Kava runs on the Kava Protocol and is governed by the KAVA token. Kava allows users to take out stablecoin loans using their assets as collateral.

• Hard runs on the Hard Protocol and is governed by the HARD token. Hard allows users to supply and borrow assets from money markets.
• Swap runs on the Swap Protocol and is governed by the SWP token. Swap allows users to buy and sell tokens, and provide liquidity to pools using an autonomous market maker.
• All three applications run on the Kava blockchain built using the Cosmos SDK.
• All three applications are open source and designed to be integrated with 3rd party Defi apps.
• All three applications use the same kava address.
• Applications can be used independently or in combination. A user could use their asset to mint $USDX on Kava, supply that $USDX to Hard, and add their rewards or other assets to a liquidity pool on Swap.

1️⃣ Governance of Hard & Swap will be available on the protocol-level after mainnet launch on August 30th. Token balance at the time of a governance proposal’s deadline will be used to count a user’s votes. If a user votes with 1000 $HARD tokens, but then sends 200 $HARD tokens elsewhere, the vote will count for 800 $HARD tokens. This token balance for governance also includes $HARD and $SWP tokens that are still vesting.

2️⃣ The ability to use these tokens to govern Hard and Swap should increase market interest in holding the tokens as stores of value. Active participation from users will ensure decentralized, continuous improvement of every application within the entire Kava ecosystem.

3️⃣ Kava Labs will incrementally build a user interface for governance within the webapp. Users will be able to vote on governance proposals (adjusting rewards and system limits, onboarding new assets, mainnet upgrades, SAFU payouts, etc.) for all three protocols, and any future protocols.

4️⃣ While this feature being built within the webapp, users can still vote on governance proposals using Cosmostation Wallet. Click here to watch a tutorial video on how to vote.

5️⃣ Users can view open and past proposals on mintscan.io/kava/proposals, kavascan.com/votes, or api.kava.io/gov/proposals.

Stay in touch!

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• Join the conversation on Telegram:
  - Kava: https://t.me/kavalabs
  - Hard: https://t.me/hard_protocol
  - Swap: https://t.me/KavaSwap
• Checkout our code: https://github.com/kava-labs
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Disclaimer: This content is provided for informational purposes only, and should not be relied upon as legal, business, investment, or tax advice. You should consult your own advisers as to those matters. References to any securities or digital assets are for illustrative purposes only, and do not constitute an investment recommendation or offer to provide investment advisory services. Furthermore, this content is not directed at nor intended for use by any investors or prospective investors, and may not under any circumstances be relied upon when making investment decisions.