6. Governance and Tokenomics
6.1 Governance Overview
KTON follows a progressive decentralisation model.
Voting Power
| Token | Purpose | Voting Weight |
|---|---|---|
| $KTON | Liquidity token & governance power | 1x (per jetton) |
Core Modules
- Parameter Committee — Adjusts APY targets, fees, withdrawal buffer.
- Operator Committee — Whitelists / slashes node operators.
- Treasury Committee — Allocates budget for audits, liquidity mining and R&D.
All modules operate under the Timelock Executor described in Chapter 5.
6.2 Token Supply & Distribution
KTON does not employ a separate governance token at this stage. Voting rights and economic exposure are both represented by $KTON itself. Therefore, no additional token supply schedule is required.
| Allocation | Notes |
|---|---|
| Staking Rewards | Reflected via $KTON exchange-rate growth |
| Treasury Reserve | Managed by DAO using $KTON inflows |
6.3 Fee Model
- Validator Rewards Fee: A configurable share (set by DAO) goes to treasury.
- Instant Withdrawal Fee: Dynamic fee; its distribution between burn and treasury is determined by governance.
- MEV Rewards: Split between node operators and nominators based on a DAO-approved formula.
6.4 Treasury Management
Treasury assets (TON, KTON, USDT) are held in a multisig wallet. Expenditures require DAO proposal approval and timelock execution.
Typical budget items:
- Security audits & formal verification.
- Liquidity incentives (DEX pools, lending markets).
- Ecosystem grants for wallets, analytics, DeFi integrations.
- Community marketing & hackathons.
6.5 Road to Full Decentralisation
| Phase | Milestone | Control Level |
|---|---|---|
| Alpha | Mainnet launch, Council multisig | Centralised |
| Beta | Governance token distribution | Hybrid |
| Gamma | On-chain voting live | Decentralised |
| Delta | Sub-DAOs activated | Fully decentralised |
Next: 7. Security and Audits