Announcing KNX Token Generation Event and Distribution

0xB520
October 19th, 2021

Every day, while there are thousands of crypto being traded, there are billions of questions being asked. If we were able to tokenize questions and DeFi them, how big would this market be? $0.1B, $1B or $10B? The future is now: KnoxMarket is able to capture 6-digit liquidity & attract 5-digit trading volume during its first two weeks:

If there were thousands of questions being asked on KnoxMarket, KnoxMarket could become the Uniswap of Q&A, with billions of dollars of liquidity and millions of dollars of trading volume, facilitating high-quality knowledge sharing and coordination throughout the world. To reach this milestone, communities play a core role, and therefore it is important that KNX tokens are distributed to as many communities as possible.

Liquidity Bootstrapping Pool (LBP)

LBPs are Smart Pools on Balancer, the perfect instrument to conduct a fair launch auction. Key features of the LBP include:

  • Fair distribution: The high liquidity of an LBP enables distribution of the tokens to as many participants as possible because they can contribute with minimal slippage.
  • Prevent front-running bots: There is no first-come, first-serve advantage because the price of the token gradually drops from a high starting price based on a pre-configured price decay curve.
  • Price discovery: Users will contribute to the price discovery on their own DYOR and valuation of the project; this is essentially crowdsourcing the project’s valuation at the community-level.

KnoxFund: Community-Driven Investing

Community-driven investing is the next major use case that we will explore. The sole purpose of LBP is to bootstrap a sizable KnoxFund to deploy on Enzyme Finance. SuperKnoxers, top-scoring users selected from KnoxMarket competitions, will make community-driven investing decisions and are responsible for growing KnoxFund. Profits made from KnoxFund will be shared with SuperKnoxers (Read our previous blogpost for more details). The design of KnoxMarket crypto-economics is such that we can empower users to drive better, community-informed, decision-making and profits. We have high hopes to turn KnoxFund into the highest AUM fund on Enzyme Finance (>$100M).

KNX Tokenomics

KNX token can be utilized in KnoxMarket, KnoxFund and KnoxGov. In KnoxMarket V2, users will need to stake KNX to propose topics. KNX is also required to participate in KnoxGov governance proposals.

KnoxFund will require SuperKnoxers to use KNX to participate in peer-prediction investment topics. SuperKnoxers will also need to stake KNX to share KnoxFund performance fee. For passive users who do not want to compete on KnoxMarket to become SuperKnoxers, they can stake KNX instead. However, this will be very competitive: a minimum stake of ~500,000 KNX (~$50,000) will be required to become a SuperKnoxer. This is because SuperKnoxers are entitled to share the performance fee made from KnoxFund. If LBP successfully bootstraps a $1M KnoxFund and KnoxFund grows from $1M to $2M, SuperKnoxers will split the $200k performance fee along with KnoxEdgeDAO. In short, the larger the KnoxFund and the greater the profit, the higher the performance fee shared with SuperKnoxers and the higher the demand for KNX.

Token Allocation

  • Token Symbol: KNX
  • Total Supply: 1,000,000,000 KNX
  • Contract Address (Celo): 0xa81D9a2d29373777E4082d588958678a6Df5645c
  • Contract Address (ERC20): 0xe93a27d4ed64f44a2b356d78c06115e5c9d97da0

10,000,000 KNX tokens were bridged from Celo to Ethereum and deposited into CopperLaunch LBP:

Community (35%)

To distribute retroactive airdrops and knowledge mining rewards to early adopters, 10% of KNX from the community allocation is unlocked on day 1. KNX airdrop will be claimable in early November and is vested linearly for 7 days. The remaining 90% of the community allocation is vested linearly for 5 years and will be used for knowledge mining, liquidity mining as well as incentivizing KnoxFund depositors on Enzyme Finance.

DAO Treasury / KnoxFund (15%)

To bootstrap a sizable KnoxFund to deploy on Enzyme Finance, 10% from this allocation will be unlocked on day 1 to distribute 10M KNX tokens through LBP on CopperLaunch on October 16, 2021. Any remaining KNX tokens from the LBP will be sent to Celo Reserve and/or KnoxEdgeDAO. The USDC collected from the LBP belongs to the community and will be invested in KnoxFund based on decisions made by SuperKnoxers. The remaining 90% is stored in the DAO treasury and is linearly vested for 3 years.

KnoxEdge Labs (15%)

KnoxEdge Labs (KnoxLabs) will continue to develop more DAO tools for knowledge coordination and steward KnoxEdgeDAO into the future. KnoxLabs will work closely with the community and SuperKnoxers to make decisions in the best interest of KnoxEdgeDAO. 15% of the KNX total supply is allocated to KnoxLabs and is subject to a 5-year unlocking schedule. Future fundraising from VCs will come from this allocation (if there’s any).

Founders, Team & Backers (35%)

The team has skipped seed round, private round or pre-sale and jumped directly to public fair launch. As such, the team solely relies on grants and in the future KNX tokens to support themselves.

35% of KNX total supply is allocated to early & future team members and is subjected to a 3-year vesting schedule with 1-year cliff. The early team consists of 10+ founders, team members, collaborators, advisors, and community ambassadors. The team is a diverse, global group of engineers, product builders, lawyers, accountants, and business leaders.

Details on KNX Fair Launch

Below are a few simulations that show KNX price when different amount of USDC are collected. In all of the simulations, the KNX:USDC pool weight starts at 96:4 (high KNX price) and declines to 30:70 (low KNX price) over 14 days. KNX price might not decrease at all if demand for KNX is high.

FYI, there is high liquidity & low slippage at the beginning of the LBP, but low liquidity & high slippage towards the end of the LBP, potentially resulting in a rapid price increase towards the end of the LBP. Contributors should consider this slippage factor when deciding when to contribute to the LBP. The exact graph will depend on the buy pressure and interest from the community. This Youtube video is helpful if you want to understand more on how exactly LBP works.

$KNX market cap in the next 5 years, assuming KNX price is $0.1
$KNX market cap in the next 5 years, assuming KNX price is $0.1

Step 1: Get USDC

KNX is paired with USDC. Don’t forget to acquire some USDC from CEX or DEX and deposit it into your Metamask wallet.

Step 2: Connect to Metamask Wallet

CopperLaunch supports Metamask wallet and several others. Metamask wallet is highly recommended. Don’t forget to top up your wallet with enough ETH to pay for gas fee (~$50).

Step 3: Swap from USDC to KNX

Make sure the currency selected is USDC and the launch token is KNX. Click on ‘Approve for Trading’ and then click on ‘Buy KNX’. Double check the price impact, and adjust the slippage tolerance if necessary.

Step 4: Bridge KNX from Ethereum to Celo

To qualify for the $50,000 KNX airdrop, please bridge your KNX tokens from Ethereum to Celo using Optics bridge: https://optics.app/. The bridging process takes about 4 hours. After bridging, feel free to provide liquidity on Ubeswap to farm KNX & UBE tokens.

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