Hello, this is the K STADIUM team
We are pleased to announce that the basic design of R2E, which will be coming to our SO and SOM members soon, has been completed.
K STADIUM R2E is designed to provide more rewards to users who contribute to the activation of K STADIUM, and in harmonize with the Community Pool, drive the KSTAโs value increase, as well as reflect the scarcity value of SOP.
What is K STADIUM R2E?
K STADIUM R2E is a unique reward system that allows referral bonuses for both the existing users, the upper referrals, and the usersโ most delegated SO, if the existing users encourage new users to join the K STADIUM ecosystem via their referral code.
The reward will be issued in KSTA, but KSTA circulating volume will be managed through lock-up and installment payment, and it aims for a systemic virtuous circle structure that requires Community Pool participation, which involves SOP cuts equal to half of the reward amount for continuous rewards.
1. Referral Consists a Primary, Secondary, and SO
In K STADIUM R2E, when a new participant invests in the Community Pool, the primary referrer (i.e. who directly invites the user) will receive 30% of the Community Pool invested KSTA, the secondary referrer (i.e referrer of the primary user) will receive 6%, and the primary referrerโs most delegated SO will receive 9%, for a total of 45% KSTA as referral rewards.
This structure contributes to the increase in KSTA value by encouraging new users to participate in the Community Pool and reducing the amount of KSTA in circulation.
In addition, the rewards for primary referrers who attract new users are set high to motivate referral activities, and rewards are also paid to secondary referrers and SOs in order to encourage R2E activities.
2. Utilize Lock-up and Vesting to Protect KSTAโs Worth
Every referral reward requires at least one month of lock-up period before it can be claimed, and you can claim one-third of it each month for the next three months.
Instead of KSTA flowing directly to the market after the referral policy, KSTA will be available for claiming in installments over three months after a one-month lockup, with a total of four months of vesting to help preserve KSTA value.
3. Cap the Maximum Number of Delegations to SOs at 500 Million
As we encourage investment in the Community Pool, we understand there may be concerns rewards from SO delegation will decrease.
To address this, K STADIUM will limit the ecosystemโs total number of delegated SOP to 500 million.
We expect this change will provide scarcity value to SOP, ensure a minimum reward rate for SO delegation, and encourage SOM to act quickly to earn SO delegation rewards and investment token rewards.
However, on the negative side, there is a concern that if the maximum number of SOPs delegated to SOs reaches 500 million, SOs will no longer have an incentive to continue their activities.
In this point, K STADIUM team will explain and propose a complementary model in the future through R2E progress data.
4. SOP Reduction, the Key to Earning Referral Rewards
In K STADIUM designed R2E model, the recipientโs SOP must be cut by half of the reward amount to receive the earned referral reward.
In other words, the recipient can only receive referral rewards up to twice the SOP they have, and in order to receive referral rewards, it is essential to hold SOP and Community Pool participation.
Continuous participation in the Community Pool is essential, and in addition to the lock-up and vesting described in point 2 above, the amount of KSTA circulating in the market will be controlled for a while, so in order to receive R2E rewards, participants will need to enter the Community Pool by their already own KSTA or purchasing from the market.
Moreover, for SOP that already delegated SO, the 500 million cap and undelegate penalty will make it harder to revoke the delegation, and we expect a shortage phenomenon due to the depletion of KSTA market supply.
5. R2E Funds via Annual Inflation, a Total of 40 Million KSTA per year
K STADIUM R2E introduced above, focuses on increasing the value of KSTA by creating a virtuous cycle of Community Pool through the influx of newcomers.
However, the above plan requires resources for rewards, and the K STADIUM team is asking for the consent of SO SOMs to provide these resources through KSTA inflationary allocation.
Currently, we estimate that 40 million KSTA per year will be required, which will be secured through the following inflationary reward allocation structure.
Development/Operator : Block(Validator) Reward : R2E : Community Pool = 1 : 3 : 4 : 2
Currently, the K STADIUM team is devoting all available resources to accelerate the next phase of R2E and will introduce it to users as soon as possible.
The K STADIUM Team will always do our best for the K STADIUM ecosystem.
Thank you.