KILO Tokenomics
Overview
KILO is the native utility token of the KiloLend protocol, designed to power AI-driven DeFi automation while aligning long-term incentives between users, builders, and the community.
With a fixed supply of 888,000,000 KILO, the token follows a fair-launch–oriented distribution and a usage-first value model, prioritizing real demand from AI services over speculative emissions.
KILO is not a governance-heavy token at launch. Its primary role is to act as payment, access, and incentive fuel for AI-powered lending, automation, and analytics.
Token Supply
Total Supply: 888,000,000 KILO
Supply Type: Fixed, non-inflationary
Minting: Fully minted at TGE
Emissions: None (no ongoing inflation)
Token Distribution
Community (Airdrop + DEX Liquidity)
45%
Fair launch distribution and market liquidity
Ecosystem & AI Incentives
20%
Rewards for AI usage, vault participation, and automation
Team
15%
Long-term protocol development
Strategic Investors (2–3)
10%
Early capital and strategic support
Treasury
10%
Operations, runway, and ecosystem growth
Vesting & Unlock Schedule
Initial Circulating Supply
~15–18% at TGE
Sources:
DEX liquidity
Initial airdrop
Limited ecosystem incentives
Vesting Breakdown
Team (15%)
6–12 month cliff
Linear vesting over 36 months
No tokens unlocked at TGE
Strategic Investors (10%)
6–9 month cliff
Linear vesting over 18–24 months
Same token class as community (no special rights)
Ecosystem & Treasury
Gradual release based on:
AI usage growth
TVL milestones
DAO-approved budgets (post-launch)
Token Utility
1. AI Usage & Payments (Primary Utility)
KILO is required to access and operate AI-powered features across the protocol:
AI model executions and automation strategies
AI-managed lending and yield vaults
Advanced portfolio analytics and predictive risk tools
As protocol usage grows, demand for KILO grows proportionally.
2. Staking-Based Benefits
Users may stake KILO to unlock protocol-level advantages:
Borrow rate discounts
Priority access to AI vaults
Liquidation protection buffer for leveraged positions
Fee rebates on AI execution and automation costs
Staking is designed to reduce circulating supply while increasing protocol stickiness.
3. Governance (Progressive Activation)
Governance is introduced in phases:
Phase 1: Team-guided parameters with community feedback
Phase 2: On-chain voting for:
Fee models
Asset listings
Treasury allocation
Phase 3: Full DAO governance
Protocol Revenue Model
Revenue Sources
Interest Rate Spread: 10% of borrower interest
Liquidation Fees: 2% of liquidated collateral
Flash Loan Fees: 0.1% per transaction
AI Service Fees: Paid in KILO or swapped into KILO
Revenue Distribution
KILO Stakers
40%
Treasury
30%
Ecosystem Incentives
20%
Team & Operations
10%
Deflationary Mechanisms
KILO incorporates usage-driven deflation, not artificial scarcity.
Buyback & Burn:
Up to 50% of protocol revenue used to buy KILO from the open market
Fee Burns:
A portion of AI execution and automation fees is permanently burned
Staking Penalties:
Early unstaking may trigger partial burns (DAO-controlled)
These mechanisms ensure that increased protocol usage directly benefits long-term holders.
Token Launch Strategy
Pre-Launch
KILO Points accumulation (6–8 months)
Community incentives and referrals
Target protocol readiness and initial TVL
Strategic partnerships and integrations
Token Generation Event (TGE)
DEX-first launch
No market maker
Initial liquidity provided by treasury
Market-driven price discovery
Airdrop distribution to early users
Post-TGE
Staking activation
AI usage payments go live
DAO framework rollout
Gradual ecosystem expansion
Summary
The KILO tokenomics is designed to be:
Fair – community-led and transparent
Sustainable – no inflation or excessive emissions
Utility-driven – real demand from AI services
DEX-native – optimized for organic price discovery
KILO aligns users, builders, and long-term supporters around one core principle:
The more the protocol is used, the more valuable the token becomes.
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