The 1st KRE Payout!

Introduction

Almost two months ago we introduced the Kin Reward Engine to the world — a mechanism envisioned as a way to drive the growth of the Kin Ecosystem through a simple, predictive, and transparent incentive for developers based on their contributions to the health and growth of the Kin Ecosystem. The post was our way of communicating our motivation, understanding, and principles of what initially is becoming a unique revenue model that is complementary to developers; incentivizing them based on their contribution to a shared ecosystem. A revenue model that aims to rely on transparency and fairness that eventually will provide a feasible alternative to the existing digital world monopoly.

This week we allocated our first KRE payout! This is a small but impactful first step bringing to fruition a piece of the puzzle that is part of the makeup of Kin. This will push us towards our goals of developing or more fair world.

Payout Overview

For this post we want to give a higher level but transparent overview of the top three payouts based off of the formula that we originally presented:

At the end of each day, the total amount of DAS per developer was calculated, and developers are rewarded for their relative contribution to the total DAS pool. All the daily grants though are accumulated to a single monthly payout.

With the announcement of the new federated Kin blockchain and migration this month, during the month of February there was technically no app activity. Therefore, we measured the growth contribution based on the Kin2 blockchain. While the rewards were granted to the developer’s wallets on the federated Kin blockchain, there is no need to worry for developers who still have yet to migrate. The funds are there; safe and waiting to be claimed.

This first payout was based off the 150M Kin allotted for the first KRE payout that is in addition to the other grants that developers in the Kin Developer Program are receiving. The next monthly allocation will be 450M Kin available to all KDP participants and not just the top 10 that were reflected in this first payout. We will continue to share tools and updates about the formula and the next payouts to be able to assist developers and non-developers to understand how the KRE is working.

Payout budget, duration, and participants

Being our first payout, we chose to start with a lower budget allocation of 150M Kin to be granted to the top 10 performing developers from the first Kin Developer Program. It is a monthly, net-30 payout, based on the contribution of each participant since Feb 1 2019 00:00 UTC up to and not including March 1 2019 00:00 UTC.

The amount of 150M Kin was considered the most suitable amount in order to start granting as quickly as possible within the frame of having to manually payout developers. For this reason as well, we contained the first payout to the top 10 performing developers that impacted the growth of the ecosystem. This allowed us as well to manage the risk of any potential fraudulent behavior closely. Like we have mentioned before, the next payout will cover ALL developers in the KDP. We are still in the process of working on when Kin’s design partners will be included in the monthly KRE allocation. Based on the design partners existing monthly compensation, we will find the best solution for mitigating their entry into the KRE pool. This way everyone rewarded will be reflected accordingly to the algorithm we are continuing to improve and update.

The payouts are administered on the new federated blockchain. Like we mentioned previously, monitoring for any fraudulent and abusive behaviors is extremely important for the equal opportunity of how the KRE performs.

Conclusion

Kin made an important step toward being even more open for business and is putting into motion the steps that will move to disrupt the current financial system of the digital world. This is for us and for the lot of you a major piece of the puzzle. Notice that this isn’t the end solution, but we can finally say that the KRE is alive and kicking. We will continue to further the development of the KRE as we lead the push towards creating a more fair world for developers and their users.

Want to get a piece of the pie? Come join the kin ecosystem!