News & Updates
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News & Updates

Announcing KeyFi DAO: Token Burn, Airdrop, Cross-Chain Bridge, and more

TL;DR — We are starting our decentralization roadmap, burning tokens, implementing our cross-chain bridge, airdropping 1,000,000 $KEYFI to stakers, and more. However, in order to proceed, we need a governance vote from our community. Follow the instructions below.

Our Goal

Here at KeyFi, our goal is to create a decentralized application that you can reliably and intelligently manage your DeFi portfolio, forever — a DApp that is a living, breathing entity, just like our loyal community.

To get there, we plan to fully decentralize $KEYFI token, giving our token holders several benefits, including less human risk, more control over the future of the project, and allowing it to grow and evolve in creative and dynamic ways.

We are now starting the second phase of our full Decentralization Roadmap, to create KeyFi DAO.

We plan to achieve full decentralization by Q4 2022, as stated in our updated roadmap:

Decentralization Roadmap

✅ Phase 1: Governance Voting Platform

We launched our governance token, $KEYFI, along with our snapshot-based voting platform.

⏳ Phase 2: Formally allocate tokens to KeyFi DAO

In order to push forward our decentralization roadmap and launch KeyFi DAO, we propose to distribute the community wallet of 5.3m $KEYFI.

The community wallet currently owns 5.3m $KEYFI as of November 10, 2021.

The proposed distribution for the 5.3m $KEYFI are as follows:

  1. Airdrop to KEYFI Stakers: 1,000,000 KEYFI (ERC20) tokens to be awarded to all KEYFI (ERC20) stakers¹ (click here to join)
  2. Bridge Liquidity: 500,000 KEYFI for BSC Bridge and 500,000 KEYFI for Polygon Bridge²
  3. Burn KEYFI Tokens: 1,000,000 KEYFI tokens to be burned, reducing the total supply to approximately 8.9m KEYFI tokens
  4. KeyFi DAO Treasury: 1,000,000 KEYFI tokens to be transferred to the DAO contract, which will be controlled by the community
  5. KEYFI ERC20 Rewards Pool: 1,000,000 KEYFI tokens to fund the Ethereum staking rewards for another year, which is paired with a reduction in the rewards rate to reduce inflation
  6. Dev/Marketing Pool: 300,000 KEYFI tokens to be transferred to the dev wallet to be used for development incentives and marketing

¹ Yes, there will be an ETH-BSC bridge before the airdrop snapshot is taken. This means you do not need to sell your KEYFI BSC token. You will be able to bridge them to the ETH network, assuming no technical hurdles.
² A separate announcement will be made when the cross-chain bridge goes live.

🔴 Phase 3: KTX Smart Vaults

This is an exclusive preview into KeyFi’s next offering, slated to go into development in Q1 2022.

Similar to Yearn Finance’s yVaults, KTX Smart Vaults will be pools of funds that attempt to provide passive income through competitive yield farming and other income strategies.

Except our strategies are created by AI, not humans.

Previously dubbed “kTokens”, the KTX Smart Vault will provide innovative, fungible, automatic interest-bearing tokens that allocate liquidity into a basket of DeFi tokens and deposits, powered by machine learning and approved by community governance.

The goal is to provide our holders instant, managed diversification across many DeFi assets.

All allocations would be determined by our Data and Machine Learning models, and all strategies would be voted on by community members.

🔴 Phase 4: Full Decentralization

The DAO will control the KEYFI token and staking contracts. This includes on-chain voting, as opposed to relying on snapshots. Details will be provided on a later date.

Your Tasks

Vote to initiate KeyFi DAO: Phase 2 (Optional)

Click here to vote.

Voting is optional and ends on November 14th. It is important to note that KeyFi DAO: Phase 2 will not proceed unless there is explicit approval from you, the community of $KEYFI stakers, in the form of a “yes” vote.

Prepare for Airdrop Snapshot

Read these detailed instructions of the KEYFI Staking Airdrop, including the airdrop schedule and requirements.

You will have plenty of time to review the instructions prior to the December 9, 2021 snapshot. In the meantime, buy and stake KEYFI (ERC20 version), assuming a successful “yes” governance vote.

If you have any questions about the airdrop, drop in our Telegram group.

Sit back and relax

Assuming a successful “yes” vote, we will manually execute the transactions required to process the Phase 2. The entire process will be completed on or around December 9, 2021, the 1-Year Anniversary of KeyFi!

Looking forward to celebrating our anniversary with you in December!

🚀 Onwards and upwards,

The KeyFi Team 🗝


Why decentralize the project?

Staying true to the intent of a DAO, a decentralized governance system will replace our existing “administration” with governance by you the community, empowering you to propose, debate, and implement changes to KeyFi, independently.

This creates a resilient financial infrastructure with no human vulnerabilities. Participation starts with buying and staking the KeyFi governance token, $KEYFI.

What actions will the community be able to propose?

Anyone with staked $KEYFI can propose a governance action, which can be as simple as:

  • How liquidity should be allocated
  • Vote on team salaries
  • Implement a cap on token supply

To as complex as:

  • Minting new tokens to expand to a new blockchain
  • How yield is generated in a future KeyFi vault product
  • Implement SelfKey’s new Proof-of-Individuality (POI) system

Note: KeyFi is an independent and separate project from SelfKey. KeyFi app brought a unique utility for $KEY holders by enabling staking for users with credentials. Just like KeyFi app, POI will also bring new and unique utilities for KEY and its holders with the use of credentials. The KeyFi community may use POI, but this would be subject to community vote by KeyFi DAO.

Why does the community wallet own 5.3m $KEYFI?

As described in our whitepaper published on December 2, 2020 and later expounded in the article KEYFI Token Economic Model Update:

  • 10m ERC-20 KEYFI tokens were minted in December 2020
  • 80% was allocated for Community
  • 20% was allocated for Team (10% Development / 10% Treasury)
  • No new tokens can be minted until approximately Q4 of 2022 (locked by token contract rules)
  • Decentralization Roadmap states that the KEYFI token should be community driven via Governance and Smart Contract mechanisms (KeyFi DAO)

The current 5.3m token balance has been earmarked for community distribution since the token launch on December 9, 2020.

Why is the community wallet being distributed?

This distribution was inevitable, but to elaborate, it is being expedited to:

  • Create a more distributed and decentralized project
  • Ensure functionality of development (e.g. bridges), rewards, and marketing
  • Provide reassurance to new holders when looking at the distribution of wallet balances

Why is there a “reduction in the rewards rate to reduce inflation”?

If you recall, when $KEYFI was launched, there was a minting restriction built into the contract. This means that no new tokens can be minted until approximately Q4 2022 (locked by token contract rules).

The purpose of the rewards reduction is two-fold:

  1. Reduce overall inflation; more rewards means growing circulating supply
  2. Ensure rewards do not run out by Q4 2022 when the minting restriction expires, at which point the community (KeyFi DAO) can vote to mint new tokens for rewards, if they wish to

Although we appreciate our community staking $KEYFI and providing liquidity up to this point, we have never positioned ourselves as a yield platform and therefore rewards should be viewed as a finite incentive for early supporters of the project.

As we move into the next phase of our project — a flagship platform launch, scaling development, and creating a lot more token exposure, we believe everyone will be able to realize value outside of the existing rewards pool.

With that said, we do plan to create new holder incentives in the coming 1–2 months. Stay tuned!

About KeyFi

Built from the ground up, KeyFi provides intelligent tools for managing your DeFi portfolio, such as custom strategy builders and yield projection. KeyFi seeks to solve challenges users face when managing their DeFi portfolios, such as juggling multiple wallets/platforms/chains, manually comparing interest rates, and the lack of historical data. This is all in service of KeyFi’s ultimate goal: to become a premier dApp for sophisticated users who want fine grain control over their assets.

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