KernelDAO's technology revolves around its innovative restaking protocol, which enables users to maximize their crypto gains while enhancing network security. Here's a breakdown of its key components.
- KERNEL: A shared security layer on BNB Chain that allows users to restake assets like BNB, BTC, and stETH to secure decentralized applications and middleware. This pooled security model reduces costs by 10x to 100x for Distributed Validator Networks (DVNs).
-KELP: A liquid restaking framework on Ethereum that lets users retain liquidity via representative tokens (like rsETH) which can be traded or used in other DeFi protocols. Kelp has facilitated over $2 billion in restaked assets.
-GAIN: An automated yield strategy tool that optimizes returns through AI-powered analytics and cross-chain bridges via LayerZero. Gain helps users earn up to 23% yields, surpassing traditional staking.
KEY FEATURES
- Multi-chain support: KernelDAO operates on Ethereum, BNB Chain, and over 10 other networks, creating an interoperable DeFi ecosystem.
- Restaking: Allows users to reuse staked assets across multiple blockchain networks and services, boosting profits and strengthening Web3 ecosystems.
- Governance: The KERNEL token unifies governance, staking rewards, slashing insurance, and incentives, with 55% allocated to users.
BENEFITS
- Increased liquidity: Representative tokens enable users to participate in other DeFi activities while still earning staking rewards.
- Improved security: A larger collateral base guards against potential attacks.
- Optimized yields: Automated strategies maximize returns through efficient restaking and compounding .
TOKENOMICS
In decentralized ecosystems, tokenomics and token utility are the cornerstones of innovation, growth, and community participation. A well-designed token economy ensures equitable value distribution, incentivizes early supporters, and aligns user interests with the protocol's success.
Kernel has emerged as a pivotal player in the restaking ecosystem, leveraging $KERNEL as its governance and utility token to unite its suite of products—Kelp LRT, Kernel Infrastructure, and Gain. This blog delves into the tokenomics and utility of $KERNEL, showcasing how it powers one of the most advanced restaking ecosystems in Web3.
THE BASICS OF THE $KERNEL TOKEN
Token Overview
Name: Kernel Token
Ticker: $KERNEL
Type: Governance and utility token
Supply Information
Total Supply: 1 billion $KERNEL
Circulating Supply: To be determined closer to the Token Generation Event (TGE).
DISTRIBUTION BREAKDOWN
The $KERNEL token distribution emphasizes community-first principles, allocating the majority of tokens to the users and ecosystem participants.
Community & Ecosystem Partners (60%)
Community Rewards & Airdrops (55%)
20% for airdrops across multiple seasons.
35% for future rewards to incentivize ecosystem engagement.
Ecosystem Partners (5%) for initiatives like market making and on-chain liquidity.
Private Sale (20%) for completed and upcoming strategic sales.
Team & Advisors (20%) with a 24-month vesting period following a 6-month lock-up post-TGE.
Season 1 (10% of Supply)
Timeline: Until Dec 31, 2024
Eligibility: Users earning Kelp Miles/Kernel Points till Dec 31, 2024.
Loyalty Boost: 15% reward boost for users who restake before Jan 15, 2025.
Season 2 (5% of Supply)
Timeline: Jan 1 - Apr 30, 2025
Loyalty Boost: Additional 15% for restaking before Jan 15, 2025.
Season 3 and Beyond (5% of Supply)
Timeline: To be announced, subject to governance approval.
USE CASE
The $KERNEL token is deeply integrated into Kernel’s core products and ecosystem:
1.Kelp LRT: $KERNEL plays a role in securing $2B+ TVL with rsETH, one of Ethereum’s largest liquid restaking tokens.
2.Kernel Infrastructure: Supporting 25+ ecosystem projects, including Liquid Restaking Tokens, middleware, and decentralized applications.
3.Gain: Tokenized reward vaults with $200M+ TVL, offering seamless DeFi composability.
4.Partnership Integrations: Collaborations with leading DeFi protocols and middleware enhance the token’s functionality and accessibility.