Kylin Network Launching on Kusama as Pichiu ($PCHU)
Updated Tokenomics and Parachain Lease Offering Details
What happened?
We are very excited to share the updated details around our launch on Kusama. While the support has been tremendous in some ways, there were a few concerns around tokenomics that we’ve now adjusted and come to consensus on as an Ambassador team.
The main two points raised by our community were:
- The swapping mechanism was deemed unfair, and there was consensus that it should be an airdrop to reward $KYL holders.
- Total supply, there was concern that adding another 1B to the same ecosystem might lead to dilution.
- The apparent timeline delays of a Q1 estimated launch.
Why the Update?
Launching a parachain network takes time, effort and resources and we initially thought it would make the most sense to start with Polkadot.
Now that Kusama has been live and we have dozens of partners who are hungry to get started (and many, many more who haven’t yet been announced) we understand that we are missing opportunities by not being able to provide data solutions yet
In order to operate on both KSM and DOT networks we must have a separate token. This helps avoid confusion amongst consumers and makes it easier for the exchanges to facilitate transactions.
Launching on both KSM and DOT also expands the potential network effect of our services while also giving us a significant head start over previous plans.
In short, we see a high probability of improving our (1) security (greater volume of active nodes), (2) profitability (more active partners), (3) and scalability (MUCH greater adoption)
So what about timelines?
Based on what we’re seeing, we could have Pichiu launched on KSM FROM December 2021 onward. Now this is an admittedly optimistic estimation.
In order to achieve this we must pass several code audits along the way and it wouldn’t be reasonable to ONLY look at the best-case scenario.
Thus, realistically we are looking at launching sometime in Q1 (and as early as December if everything is smooth sailing).
This would be Swiftly followed by a DOT launch which would occur less than two months after the Kusama launch (enough time to show Parity and the community at large that the Kylin Network is truly ready for fullscale adoption)
Having this completed quickly could catapult us towards even more explosive growth as we continue to nurture partnership relationships in preparation of launch in the rapidly approaching months.
Our execution in communicating these plans was admittedly flawed and we have taken your feedback. Please read below for more details.
What we did
We have always said that our community is the most important aspect of our project, we sat down, listened, and took notes. Thank you to everyone who shared constructive feedback on how we can improve.
In less than 24 hours we have adapted.
We hope this shows how much we care and value our community. We will always remain vigilant to incorporate their feedback as soon as possible which is in-line with our DAO business-model
Thank you to all the contributors who gave us some amazing ideas; our community spoke and we listened! Seeing this type of healthy collaboration makes us even more excited to begin launching community-driven projects in the near future!
Tokenomics Explained
Firstly, the original swapping mechanism has been scrapped — we will now airdrop $KYL holders with $PCHU.
Secondly, the total supply has been reduced to 100m. Which is 10% of the supply of $KYL.
Max Suppy $PCHU 100million
The new tokenomics can be found below:
- 30% Parachain Lease Offering fund (TBD)
- 10% Parachain Lease Offering Reserve (set aside for future auctions)
- 9% Community rewards
- 6% Holders reward
- 5% Lock drop rewards
- 20% Marketing fund
- 10% Liquidity fund
- 10% Dev fund
Holder Rewards
Total rewards 6% (6,000,000 PCHU Tokens)
All KYL holders who custody their tokens in a NON-CUSTODIAL wallet will have equal opportunity to join in the PCHU drops
1% $PCHU (1,000,000 PCHU Tokens) will airdrop to $KYL holders immediately. The remaining tokens (5,000,000 PCHU Tokens) will be distributed each month at 0.5% $PCHU (500,000 PCHU Tokens) per month for a total of 10 months from the time of initial token launch.
Lock Drop Rewards
Total lock drop rewards amounts to 5% (5,000,000 PCHU Tokens)
0.5% $PCHU (500,000 PCHU Tokens) will airdrop to $KYL holders who lock their $KYL per month. This will last for 10 months from the time of initial token launch.
Marketing Fund
We understand that it’s important to invest in increasing awareness of our community and in sharing the value that our technology can provide.
In order to have the greatest chance of success, we’ve been working closely with the Ambassador team to put together an upgraded marketing strategy that is centered around educational and promotional material. This way more people can keep up with updates and learn more about the exciting possibilities of our data solutions.
A few initiatives that this includes is increasing developer engagement (more DDMO and Oracle support). We want to attract more quality developers to participate in the growth of Kylin by building applications and solutions on top of our network.
Additionally we will be engaging in collaborative marketing with our partners in order to better showcase the MANY use-cases available with decentralized data solutions.
And again. All of this is estimated to be CONSERVATIVELY sometime in Q1 (though potentially even earlier with some good fortune)
Liquidity Fund
This allocation is dedicated to liquidity for KSM swaps and to enable future listings for staking pools similar to what we did for KYL token on Mantra Dao, Thorchain and Unifarm.
Developer Fund
We wanted to ensure that the community felt as safe as possible that development funds are being used wisely for the benefit of the community at large. This means that funds are used solely for Infrastructure costs (such as cloud instances) and validator rewards.
For the sake of transparency we will be using a multisig wallet to ensure that technical development or infrastructure costs must approve usage details and withdrawals.
Governance
One thing that we have learned is that we need to add the governance functionality to allow the $KYL holders to propose and vote, and therefore have a more valid feedback loop moving forward for these types of initiatives as we iteratively move toward a DAO.
We will focus on adding this functionality as soon as Pichiu is launched.
The vision of decentralization is true power to the people. And in this case, that means that token holders. Ensuring that we have an operating governance structure is a top priority so that we can adapt to changes more quickly, come to consensus on decisions with less friction, and push major initiatives through with greater effectiveness than now.
Each step takes us closer and closer to becoming a true fully decentralized autonomous organization.
We take responsibility for not communicating properly with the community. And it’s with the deepest gratitude that we thank our Ambassador teams for continuing to strengthen and refine our network to reach the highest potential value.
We believe that this is an opportunity to become even stronger as a community. The journey to becoming a Blue Chip project, as the data solutions powerhouse of Polkadot, will require our leadership teams to remain strong and focused on the vision at hand.
We’ll be dropping additional updates and reference materials about the details of governance over the coming days and weeks.
Final Note from the Team
Pichiu network is about rewarding our community, the vast majority of the funds will be used for the further building of the community and pushing adoption. We believe this will serve to accelerate the brand overall.
All rewards will be given to addresses who have Kylin in their non-custodial wallet from the time of snapshot. This way the largest benefit is to the HODLers who are here with us on this epic journey towards building the decentralized data economy on Polkadot.
It’s been about a year since first launching Kylin and we’re humbled as a team to see so much growth.
More than 58,000 followers on twitter. 13,000 members strong in the official Telegram.
And so many countless more in the international communities led by our amazing ambassador teams such as BullSander, Anh, CryptoLady, Stoov, Mango, Guglielmo, Danrunn, and the countless legends answering people’s questions and comments across the interwebs.
Crypto tends to move parabolic in nature and we are prepared to continue to work tirelessly to ensure that nothing can stop the vision of decentralized data solutions from reaching the world.
Thank you for taking the time to read this article.
Onward to new heights!
Respectfully,
The Kylin Team
