August 24, 2025 - The cross-chain DeFi platform Kava (KAVA) recently completed the K15 mainnet upgrade, officially reducing the token inflation rate to 0% and permanently locking the total supply at 1.08 billion KAVA tokens, marking the project's entry into a new phase of the deflationary economic model. Meanwhile, the annualized staking yield (APY) of KAVA remains high at 21.9%, and the launch of liquid staking derivatives bKAVA further enhances capital efficiency.

Deflationary model in effect: The total supply of KAVA is permanently locked at 1.08 billion tokens

After the K15 mainnet upgrade, the permanent inflation rate of the KAVA token is reduced to zero, and the issuance of new tokens will completely cease in the future. This means:

- Supply Cap: The total supply of KAVA is fixed at 1.08 billion tokens, with no further issuance

- Value Capture: Token demand will completely rely on ecological fees and governance needs

- Increased Scarcity: Long-term holders may benefit from the value support brought by deflation

Aaron Choi, director of the Kava Foundation, stated:

"The K15 upgrade is a critical turning point for Kava's economic model. We are building a more sustainable token system that allows holders to truly benefit from ecological growth."

High Yield Staking: 21.9% APY attracts long-term holders

Despite entering a deflationary phase, KAVA still offers an attractive annualized staking yield (APY) of 21.9%. Additionally, the launch of liquid staking derivatives bKAVA allows users to earn yields while staking KAVA, enabling flexible participation in DeFi lending, trading, and other operations, significantly enhancing capital efficiency.

Market Impact and Future Outlook

- Short-term Impact: The deflationary model may enhance market confidence in the long-term prospects of KAVA, but attention needs to be paid to whether staking yields can maintain their attractiveness

- Ecological Development: As the activity of applications on the Kava chain (such as lending and stablecoins) increases, fee income may become an important support for token value

- RWA Layout: Kava plans to explore the tokenization of real-world assets (RWA) to further expand the use cases of KAVA

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