Chapter 1: The Kinetic Token ($KNTC) Airdrop

If you have been following us on Twitter, we announced our $KNTC airdrop for a total of three different groups of Stakers, Holders & LPs in the Terra, Anchor and Alchemix ecosystems. The total amount airdropped will be 35% of the $KNTC genesis supply. This is a huge amount of tokens to be airdropped, and some of the highest we have observed within the Terra ecosystem. Given the early support we’ve received from the community, we have decided to give back as much as we can.

At genesis, the allocated airdrop will be distributed to the designated groups. Users will need to claim their allocated tokens by interacting with the Kinetic App.

The below sections are intended to provide our reasoning for choosing the three communities, the snapshot timing, as well as a breakdown of airdrop eligibility.

Terra, Anchor & Alchemix — Why these three?

$LUNA Stakers

As $LUNA secures the underlying infrastructure for DeFi 2.0, we believe that it is essential to further incentivize staking and have decided to allocate a total of 20% of the total $KNTC supply at genesis (~57 % of the airdrop) to $LUNA stakers.

$ANC Stakers

We are utilizing Anchor Protocol as the underlying yield bearing mechanism in V1 of Kinetic. Accordingly, we have decided to airdrop to $ANC stakers to incentivize them to continue staking and therefore helping to steer the direction of Anchor Protocol via their governing power. We are allocating a total of 10% of the total $KNTC supply at genesis to ANC stakers (~29 % of the total airdropped amount).

$ACLX Holders (incl. Stakers & LPs)

Being inspired by Alchemix and the fact that they have pioneered self-repaying loans, we have decided to airdrop 5% of the total $KNTC supply at genesis (~14 % of the total airdropped amount) to $ALCX holders, stakers and LPs. The Alchemix team has been very friendly and collaborative from the beginning and we are more than happy to give back to their community.

Snapshots

All snapshots for the genesis airdrops have been taken on October 31st 2021.

The following token prices have been taken from Coingecko for the snapshot day:

$ALCX price at snapshot: $464.92 per ALCX

$ANC price at snapshot: $3.02 per ANC

$LUNA price at snapshot: $43.20 per $LUNA

These prices become relevant in the next section about airdrop eligibility.

Snapshots to determine future airdrop allocations will be taken each quarter. In order to disincentivize staking/holding tokens for the sole purpose of receiving the airdrop, the snapshots will be announced via Twitter after the respective snapshots have been taken.

Allocation & Eligibility

The $KNTC airdrop will be a linear airdrop with a max cap.

The amounts per address for each airdrop are linear to the total amount of tokens staked/held for each group & snapshot. However, there is a cap of how many $KNTC will be airdropped per address per airdrop to avoid concentration of $KNTC in the hands of large token holders.

Further, in order to prevent dust addresses from receiving miniscule amounts for which claiming the airdrop would not be net positive (after fees), we also set a $100 minimum threshold for each address in order to be eligible. Further info below.

Airdrop for $ALCX Holders

$ALCX Eligibility:

• All $ALCX holders, stakers and LP token holders of the ETH-ALCX Sushi Swap pool with a combined minimum balance of 0.21 $ALCX* at the snapshot (worth $100 at snapshot) are eligible

Airdrop for $ANC Stakers

$ANC Eligibility:

• All $ANC governance stakers with a minimum balance of 33.11 $ANC* at the snapshot (worth $100 at snapshot) are eligible

Airdrop for $LUNA Stakers

In order to incentivize further decentralization of the Terra network, we have decided to exclude any $LUNA that is staked with a validator with 2,00% or more voting power from the airdrop. This is also in line with Do Kwon’s recent proposal for excluding delegations to top validators from $ANC airdrop eligibility. However, we believe that 2,00% voting power is a more intuitive threshold than an arbitrary amount of “Top XY” validators. This way we will not punish some validators that would have been in the Top XY, even if the system is already sufficiently decentralized during future snapshots.

At the time of the snapshot, the following validators had 2,00% or more voting power and will be excluded from the genesis airdrop: Orion.Money, Staking Fund, B-Harvest, Certus One, DokiaCapital, mainnet-validator, hashed, Terran One, Mosaic and Luna Maximalists.

$LUNA Eligibility:

• All $LUNA stakers with a minimum balance of 2.31 $LUNA* at the snapshot (worth 100$ at snapshot) are eligible, if they did not have their $LUNA delegated to one of the above mentioned validators

*The amounts were determined based on token prices on the day of the snapshots and everything after the first two decimals has been cut-off for simplicity.

Don’t forget to claim your Airdrops!

Once the airdrop has happened (at/around launch of our protocol), any $KNTC that are not claimed within 90 days will be reclaimed by the protocol and sent to the community pool.

We have decided to implement this time limit to strengthen the community pool, enabling the community to spend these funds to improve Kinetic as opposed to leaving tokens unclaimed and in limbo indefinitely.

What’s next?

We are in the final phase before our highly anticipated launch and although we tried to launch in December, we had a few delays due to lengthy auditor discussions & legal. However, we are looking forward to our launch as well as our TGE which both are expected to happen in early Q1 2022.

Chapter 2: The Roadmap which will be laying out the next steps of the Kinetic protocol launch is planned within the next weeks.

For more alpha along the way, stay tuned by following us on Twitter, joining the Telegram & sign up for our newsletter.

And lastly a BIG THANK YOU to everyone for the great early support! We cannot wait to finally bring this product to life!