Links

KRO Minting Logic

The Kroma network's KRO token minting logic is designed to foster long-term sustainability and value for its participants. By employing a decaying emissions schedule, the network ensures a fair and decreasing rate of new token issuance. This not only incentivizes early participation but also aligns with the principles of sustainable token economics. Below are the specific parameters that govern the minting process:

Key Parameters

  1. 1.
    KRO Total Supply: 50,000,000 KRO
  2. 2.
    Default Mint Amount per Block: 1 KRO initially
  3. 3.
    Reduction Factor: 7.776% reduction every 90 days

Sliding Model

  • Initial Phase: At the start of the minting process, 1 KRO is minted per block.
  • Decaying Emissions: Every 90 days, the amount of KRO minted per block decreases by 7.776%.
  • Continuity: This minting process is perpetual, ensuring a continuous, albeit decreasing, supply of new KRO tokens.

Long-Term Minting Simulation

  • By the end of Year 6, the mint amount per block will be reduced to around 0.155 KRO, as shown in the figure above.
  • The KRO minted by the end of Year 6 will constitute approximately 86% of the total KRO supply.
  • The reduction factor ensures a gradual decrease in new token issuance, aligning with the principles of scarcity and value retention.

Reward Distribution

  • Rewards in KRO will be distributed to participants according to the reward schedule. There will be multiple KRO reward programs in the coming months!
  • Early participants in the network are incentivized with potentially higher rewards due to the higher minting rate in the initial phases.