⛩️ Kinto Mining Program is live
Kinto is an L2 rollup designed to accelerate the transition to an on-chain financial system. It features user-owned KYC, AML, and native account abstraction to solve the biggest blockers to mainstream adoption: security and user experience.
TLDR
- ENIP-3 has been approved by 16K Engen holders.
- Kinto mining program is officially live, marking the start of Kinto’s golden road campaign for on-chain summer.
- The Mining Program lasts for approx. Ten years. Rewards are front-loaded and slowly decrease over time. 2% will be allocated before Sept 18th.
- KINTO Rewards are calculated off-chain and assigned on-chain weekly starting on July 8th.
- Up to 33% of the max token supply will be allocated.
- The mining program rewards active users who deposit capital and app developers whose contracts receive that capital.
- The longer capital is deployed, the more Kinto tokens it is earning.
- The more capital is deployed, the more Kinto tokens it is earning.
- Engen founding participants who hold $ENGEN Tokens will receive a permanent 15–20% bonus on their rewards.
Kinto launched two weeks after the Engen launch program concluded. As it ended, three governance proposals were created, including one that proposed a sustainable and long-lasting mining program for the network.
The launch members have spoken, and an overwhelming majority have approved the ENIP-3:The Mining Program. More than 16K users have approved the mining program, making it one of the most approved proposals ever.
The Kinto Mining Program is now active. Kinto users can claim their rewards weekly starting on July 8th.
The rest of the post will now explain all the details of the mining rewards.
📈 Supply Curve
Let’s start with the supply curve. The supply curve is designed to optimize the protocol’s long-term sustainability. The rewards are front-loaded, slowly decreasing quarter by quarter.
Participation rewards will run for at least 10 years. A specific number of quarterly rewards will be targeted, but the protocol may under-allocate or over-allocate depending on the market conditions.
Here is how we will calculate the rewards target for a given quarter E:
This creates the following supply curve for the Participation Rewards Program:
🧮 Rewards per epoch and second
The Kinto Foundation publishes the monthly target rewards using the above supply curve as a guide.
Here are the official targets for each month until 2025. After December 2024, the community will create a proposal for renewing the program.
Given the monthly allotment, we can calculate how many rewards can be distributed per second of a specific month. Rm(E) for a given epoch E.
An epoch is a given month. To simplify, rewards will be calculated per second, assuming every month has 30 days. That means shorter months have slightly higher rewards per block than longer ones.
Then, the maximum number of rewards to distribute in a second is calculated by dividing the number of seconds in the epoch. Rs (Rewards per second) is then calculated as follows:
🙎 Rewards per participant
At this point, the amount of $ Kinto rewarded per second in any given month is known. However, the rewards still need to be distributed among all the participants.
First, the network's average TVL in dollars during that week will be used as the denominator to calculate the rewards of any given smart contract (including wallets) in that week.
Then, the rewards for every Kinto Wallet are calculated by going through every single asset as follows:
- If the asset is held directly in the wallet, the user will receive 70% of the rewards for the assets TVL held directly in the wallet (the remaining 30% will not be allocated).
- If the asset is held on a protocol and that protocol has been registered using the Kinto Registry smart contract, the wallet owner will receive 80% of the rewards, and the developer of that application will receive 20%.
For example, the Kinto Network has 100M in TVL, and this user has 1M in his wallet. That $1M is split as follows:
- 600k in USDC, ETH and DAI are held directly in the wallet.
- 400k deployed in a specific lending protocol called $RWALEND.
That 1M in TVL is allocated 1% of the rewards for that week (1M/100M), let’s say that’s 150 Kinto Tokens. Based on the assets held, the user would receive a total of:
- Wallet owner receives 111 Tokens => 150 * 0.6 * 0.7 + 150 * 0.4 * 0.8 = 111 tokens
- RWALend protocol receives 12 tokens => 150 * 0.4 * 0.2 = 12 tokens
- 27 tokens will remain unallocated and back to the mining pool
🚀 Protocol Boosts
In addition to these baseline rewards, the foundation and the community may decide to incentivize the usage of specific protocols.
Those rewards will be added to the baseline rewards.
For example, last week we announced the launch of wUSDM from Mountain Protocol.
wUSDM receives a 5% extra protocol boost at the moment.
🎟 User Level Boosts
1.15x-1.20x Multiplier in Kinto Rewards for Engen users
Engen users will receive permanent benefits in the Kinto Mining program.
They will receive 15–20% additional Kinto rewards based on the number of Engen credits they hold.
🤝 Coinlist Partnership
We partnered with Coinlist to create an on-chain summer campaign to drive liquidity and new users to Kinto.
The top 25 Coinlist users will receive the exclusive Admiral Badge, which gives a permanent 10% boost to the rewards of the Kinto Mining program.
You can see the full details of the campaign below:
🛤 Take the Golden Road to Kinto
Kinto offers safe and intuitive access to the best digital assets in the Ethereum ecosystem. Take the golden road to Kinto during on-chain summer and stay tuned for our upcoming product launches.
To start mining, head to the assets page and make your deposit:
We want to accelerate the transition to an on-chain financial system. A system that can match the guarantees of traditional finance, increase availability 24/7, enhance security, and decrease the friction and costs associated with conventional asset issuance.
If you share our vision for a secure, open, decentralized financial system, help us realize it.
Join us!
