On April 8, 2025, Binance announced the launch of the fourth Megadrop project - KernelDAO (KERNEL), a re-staking protocol that supports products like Kernel, Kelp, Gain, etc. Users can participate in the KERNEL Megadrop from April 9, 2025, 08:00:00 (UTC+8). KERNEL will launch on April 14 at 20:00 (UTC+8). In this article, we predict the reasonable short-term price of KERNEL at launch through comparable valuations, opening liquidity, and benchmark projects. We expect the short-term price at launch to be 0.2U-0.25U.

KERNEL Megadrop details:

-Token name: KernelDAO (KERNEL)

-Maximum token supply: 1,000,000,000 KERNEL

-Total token supply: 1,000,000,000 KERNEL

-Megadrop token rewards: 40,000,000 KERNEL (4% of total token supply)

-An additional 40,000,000 KERNEL will be distributed in batches to market activities 6 months after the spot listing; detailed rules will be announced separately.

-Initial circulation at the time of listing on Binance: 162,317,496 KERNEL (16.23% of total token supply)

-Listing fee: 0

-User participation eligibility: Complete identity verification (KYC) and in eligible jurisdictions.

-Single user reward hard cap: 320,000 KERNEL

-Reward calculation: User final points = (Locked BNB points * Web3 task multiplier) + Web3 task points

Locked BNB points (based on hourly snapshots during the BNB periodic product snapshot) = (120-day average locked BNB amount 130) + (90-day average locked BNB amount 120) + (60-day average locked BNB amount 110) + (30-day average locked BNB amount 100) + (average DeFi BNB asset amount * 80)

Web3 task multiplier: 1.5

Web3 task points: 1,100

Project introduction:

1) Project vision: KernelDAO is a re-staking ecosystem on Ethereum and BNB Chain, with products covering re-staking and automated reward generation. By achieving shared security and maximizing the utility of staked assets such as ETH, BTC, and BNB, it enhances the overall network security, liquidity, and reward generation of the ecosystem. KernelDAO aims to simplify the infrastructure for re-staking and crypto reward generation, making it accessible to global users for rewards.

2) Project value proposition: Kernel DAO offers a suite of products to simplify staking and reward generation. Each product line targets different market segments.

-Kernel: Kernel uses BNB and BTC-based assets to create a platform for shared economic security.

-Kelp: Kelp's LRT (rsETH) creates liquidity on top of illiquid re-staked assets on Ethereum. rsETH is popular in many DeFi opportunities.

-Gain: Gain tokenizes complex DeFi strategies (such as airdrop farming, yield farming, etc.) and simplifies access for any crypto user to these strategies implemented by professional managers.

3) Technical architecture: The Kernel of KernelDAO is the core infrastructure layer of the BNB Chain re-staking stack, providing security for multiple services simultaneously and enhancing reward opportunities. The innovative pooled security architecture significantly reduces the cost and complexity of establishing security guarantees.

Kelp Liquid Restaking (rsETH): rsETH is one of the largest LRTs on Ethereum, designed to enhance liquidity, rewards, and convenience in the re-staking ecosystem. rsETH provides multiple benefits to participants in the staking ecosystem, including re-stakers, middleware, and operators. rsETH is widely used among many DeFi partners - Aave, Spark, Morpho, Compound, Pendle, etc.

Gain: Gain represents a complex, non-custodial rewards library that can automatically execute various reward strategies in DeFi, CeDeFi, and real-world assets (RWA). Gain provides users with convenience and composability, aiming to enhance rewards while simplifying complex strategies.

Existing products and data

-Kernel:

Shared security protocol on the BNB chain. Re-stake BNB, BTC, and other yield-bearing tokens to earn rewards.

Total locked value exceeding $630 million.

A growing ecosystem with over 30 protocols (more than 25 middleware, 5 Liquid re-staking protocols).

-Kelp:

Liquid re-staking protocol with over $1.2 billion on Ethereum.

Over 150 DeFi partners, including Aave, Spark, Morpho, Compound, Fluid, Balancer, etc.

Running on over 10 L2s.

-Gain:

Automated reward generation vault on Ethereum, with a total locked value exceeding $130 million.

Airdrop yield vault (agETH) accessible to multiple airdrops simultaneously.

High-growth vault (hgETH) offers the highest rewards for Ethereum assets.

About 15,000 users utilizing 4 automatic vaults.

Development roadmap

Q2 2025:

Kernel: Operator testnet launch.

Gain: Expand returns to stablecoin and BTC vaults.

Kelp: Bringing rsETH to the Aave L2 market. Scaling capacity in Aave core markets, Spark, and other major lending markets.

Q3 2025:

Kernel: Operator mainnet launch.

Kernel: Middleware testnet launch.

Gain: Expanding to RWA and CeDeFi vaults.

Kelp: Continuing to expand to multiple L2s and increase lending market capacity.

Q4 2025 and beyond:

Kernel: Middleware mainnet launch and cut introduction.

Gain: Expanding into multiple asset classes in RWA.

Kelp: Continuing to expand into L2 and distribution/wallet partners.

Team introduction

Team members:

Funding history

According to rootdata disclosure, KernelDAO has completed two rounds of financing so far, raising $10 million, with the following details:

Token economics

Token utility:

-Staking:

Shared security: Re-staked $KERNEL can serve as economic security for applications built on the Kernel platform and Eigenlayer.

Cut insurance: Staked $KERNEL tokens can be used to provide insurance for any cut-related events concerning rsETH and the Kernel platform.

-Governance: $KERNEL token holders can vote on governance decisions of the protocol.

-Airdrop from ecosystem projects: Kernel ecosystem partners can airdrop their governance rights to $KERNEL holders/stakeholders.

Social data

Twitter: 85.5K

Telegram: 26.8K

Discord: 44.8K

Listing prediction:

Recent data on Binance Launchpool

Recently, Binance has been frequently listing new tokens, with high participation enthusiasm. The number of BNB participants in the recent Launchpool has exceeded 19 million, but the return rates have been relatively average.

Comparable valuations

Comprehensive forecast

According to the token distribution ratio on the first day of listing, we can see that half of the circulation is airdrop/user rewards, and nearly 25% of the circulation is from Binance super airdrops. Therefore, the selling pressure from retail investors at launch accounts for about 75% of circulating tokens. Thus, we believe the price may be 0.2-0.25U.