Peer to peer crypto payment platform Kasta recently updated the tokenomics of its native cryptocurrency KASTA. The company initially released KASTA’s tokenomics in January 2022, near the token’s initial DEX offering (IDO), when the team was still small.
A lot has changed in the company since then. Kasta has on boarded more team members, and thus more people were also able to look into the business model and provide insights on what adjustments could be made to achieve the company’s long-term goals.
The company gathered feedback from a range of sources, including industry experts, our team members, and the community.
And based on the data gathered, the team realized that one of the things that would make a huge difference in setting the business up for the long term is KASTA’s tokenomics.
Why Did We Update the KASTA Tokenomics?
When our team was gathering feedback from the community through reading comments and messages on Telegram, Twitter, and YouTube, we noticed that some comments were fair and just, while others were purely misconceptions and judgements.
And while the company ignored most of the latter, we would like to address rumours saying that the company dumps over 1 million tokens on the market daily. This is not true in any way. Some individuals even thought that the company buckets have been unlocked from the beginning and that we are pushing them on the market, which is not true at all.
The total supply increases daily, but the tokens from our buckets are not entering the market and we’re not selling them anywhere. In fact, the company has enough liquidity for it to last for years without getting access to the buckets allocated for its growth.
The last thing we want to happen is for our real, long-term supporters to get affected by these comments, which is why we decided to make the changes.
What Are Tokenomics?
Tokenomics, a portmanteau of token and economics, is one of the many things crypto geeks and enthusiasts look into when considering a new coin or token. It is an umbrella term that covers elements that make a cryptocurrency valuable and interesting to buyers. These include the token’s supply, distribution, market capitalization, allocation, use of sale proceeds, and more.
Read our Whitepaper to learn more about the KASTA token.
What Did We Update in our Tokenomics?
In the updated tokenomics, Kasta lengthened or stretched the vesting periods and cliffs of almost all the buckets, including those that belong to the team, to limit selling, prevent other issues, maintain the long-term value of the KASTA token, and provide greater confidence to holders.
For clarification purposes, vesting period refers to the timeframe when the process of locking and distributing purchased tokens happens, while cliff refers to the durational lock set before the vesting period.
What are the Different Buckets in the KASTA Tokenomics?
The buckets (also known as token allocations) in KASTA’s tokenomics are as follows. Most buckets come with a vesting period, which means they have to wait for a certain amount of time before they can access or sell their shares. The vesting periods will be provided on the table below.
1. Operations
10% of KASTA’s total supply goes to the operations department, which is responsible for managing how the business works internally, including the management, design of the business and legal to ensure the efficiency and effectiveness of the project.
2. Development
The company allocated 15% of KASTA’s total supply to development. This covers the development, maintenance, and implementation of the Kasta app, which is the most crucial part of the project.
3. Marketing
Marketing plays a huge role in the long-term success of a token, considering that there are tons of crypto projects to choose from in the market. Kasta allocated 12% of the token’s supply to the marketing department for future sponsorships, promotions, and more.
4. Team
Kasta also included a bucket for its team members, with 12% of the token supply allocated. Just like with the advisors, it’s a way for the company to appreciate all the work they do to help the business grow, while also motivating them to stay longer in the company.
5. General Reserve
The company allocated 7.39% of the token’s total supply to its reserve fund. It serves as an additional source of working capital for the business, and for meeting unknown liabilities or contingencies. It also helps improve the liquidity of the project.
6. Ecosystem & Referrals
The company allocated 5% of the total supply to the ecosystem and referrals bucket. It’s a user variable-driven bucket which provides KASTA tokens to new users of the Kasta app and those who refer them to the app.
7. Rewards
10% of the token supply goes to the rewards bucket.
8. Exchanges & Market Making
As its name suggests, this bucket is dedicated to listing the KASTA token in various exchanges and DEXs. 8% of the total token supply is allocated to the exchanges & market making bucket, and it’s 100% unlocked or accessible from the day of listing.
9. Token Generation Event
2.5% of the total KASTA supply was allocated to the token generation event (TGC) and it was 100% unlocked on the day of listing.
A TGE refers to the technical generation of a specific token and its official launch to the market, usually in the form of an initial coin offering (ICO), public sale, or private sale.
The Updated KASTA Tokenomics
The table below contains the updated vesting periods and cliffs per bucket.
KASTA TOKEN ALLOCATION
We hope these changes help the community gain trust and confidence in the project, peace of mind regarding our approach to the business, and increase the chances of the token’s long-term success.
We are releasing a new tokenomics page on our website soon to discuss more about what constitutes our tokenomics, and illustrate the buckets and their statuses in a way that’s easier to understand.
About Kasta
Kasta is a blockchain alternative to mainstream mobile payment services. Our platform makes P2P payments easy, simple, and accessible. As we transition into a crypto-based economy, Kasta provides the market convenience necessary for cross-border payments on a global scale. Through our platform, we aim for globalised cryptocurrency adoption and to improve the functionality of financial services.
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