Dear Kono Community,

First, the Konomi team would like to take this opportunity to thank all of you for your support over the past few years. Although we’ve only met in the virtual world, the Konomi project has brought us together and bonded us tightly. Whenever we think of the 27,000 community members in our Telegram group and nearly 60,000 followers on Twitter, we feel proud but also a great sense of responsibility. We always strive for the best to live up to your expectations. Now, we will share some of our thoughts with you.

The past two years have been turbulent – we have experienced moments of glory as well as moments of regret. Especially during the bear market, the death spiral of Luna, the bankruptcy of FTX, and other black swan events which have had significant impacts on our projects.

Externally, these events have made project financing extremely difficult for the entire blockchain community. Many project teams struggled to obtain external funding support and had to resort to suspending product development. Although this did not happen to us, due to tight funding, many of our developers were forced to temporarily leave our team,resulting in many creative and exciting product developments being cancelled or suspended. 

At the same time, the outbreak of multiple "black swan" events has led to a sharp drop in the value of many projects overnight, or even directly to zero. Although our team has taken some of our reserve funds to maintain the token price, our efforts are far from enough as the entire market enters a state of extreme panic, and our token price has inevitably entered a downward trend.

Nonetheless, it is reassuring to announce that our team has now reached a basic investment agreement with one of our early investors using our reserve tokens. Following this achievement, we will use this external financing to increase Kono's liquidity on various exchanges and recover our development team.

From the perspective of the Polkadot ecosystem, after experiencing events such as parachain auctions becoming normalized and Dr.Gavin Wood resigning as Polkadot CEO, the native Polkadot token DOT has fallen from a high of nearly $60 to its current price of $6. Despite our persistent regret of not being able to participate in the first batch of parachain slots due to its high cost, we believe that with the departure of important founders and the slow development of many infrastructure projects within the Polkadot ecosystem, the future development of the entire ecosystem is expected to be fraught with difficulties.

Therefore, after multiple internal discussions and consultations with well-known investment institutions and advisors in the industry, our team has decided to conduct cross-chain on the majority of the project's functionalities to Ethereum L2 while retaining the basic development of the Polkadot ecosystem. Compared to the Polkadot ecosystem, the future holds brighter for Ethereum with its better-structured DeFi infrastructure. We are certain that it will provide a better foundation for the development of the project.

Therefore, while completing the overall migration, we will also leverage Ethereum L2 to develop a brand-new project. This is a decentralized token liquidity solution project, which will develop a new mechanism called "Asset Backed Token" (ABT). Simply put, through ABT, tokens with poor liquidity can be packaged with tokens with good liquidity under a risk-controlled premise. Moreover, after classification, they can be priced through asset pricing models and sold to investors again to increase token liquidity.The ABT will integrate with Konomi’s Ocean Lending Protocol to enhance its liquidity and utility. We will share more details about the new project and its synergy with Konomi current products in the upcoming days 

After conducting research and consulting with investors, we found that the innovation and market demand of this project is even better than what we’d foreseen. Hence, instead of building this project in the Konomi ecosystem, our team is more inclined to develop a new individual project.

Here’s our rationale. Firstly, the overall architecture of this project will be distinct from what Konomi offers, and its token economics cannot be well matched with Kono. Secondly, the project is still in the early planning stage. Due to the small number of developers and high originality of the project, it might take some time for the project to be fully implemented. In simple terms, there are too many uncertainties involved now. We do not want you to bear the development risks of this project using the value of Kono.

However, we understand that the success of the new project cannot be achieved without the support of the Konomi community members. In the coming days, we have decided to further enhance communication with the community through various social media platforms. The relationship between Konomi and the new project is as close as "father and son", and Konomi community members will also consider the new project as part of their establishments. For that, we have decided that the token distribution of the new project will be a completely fair launch without any forms of token sale or team token. The initial ways to obtain the new project's tokens will only be through holding Kono or staking Kono (staking will receive a higher share). In other words, the success of the new project will only bring exciting benefits to Kono holders, and failure will not have any impact on the value of Kono. We will exchange thoughts with all our members on the social media platform of the new project regarding the specific details and development progress.

Lastly, we would like to take this opportunity to express our gratitude to Konomi's past developers. Although you have temporarily departed for various reasons, we believe that we will meet again soon with the support of the community.

As spring approaches, Konomi starts to spring to life as we welcome our first "next generation" project. Let us witness the grand opening of a new chapter for Konomi with excitement and enthusiasm!

Best Regard,

Jayden on behalf of the Konomi Team (Total 4 members)

March 2023