One Month In, Kyber’s Katalyst Sees Mass Community Buy-In
Kyber’s launch of Katalyst in early July put governance decisions of the newly launched KyberDAO in the hands of all KNC token holders.
- KNC holders vote on proposals and earn rewards
- Over 10 million KNC tokens were staked in 24 hours after the launch of Katalyst
- There are now around 58 million KNC tokens staked
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The Kyber network’s launch of Katalyst has seen impressive metrics just one month after its launch.
Kyber’s Katalyst For Growth
The Kyber Network’s launch of the KyberDAO and Katalyst on July 7 ushered in community-based decision making for the DAO, driving the network close to full decentralization. Since the start of Katalyst, KyberDAO allows every single KNC holder to share the responsibility of determining the appropriate set of parameters for various scenarios that will best drive long term protocol growth and sustainability.
In the first 24 hours of its launch, over 10 million KNC tokens were staked to the network. A quarter of the total supply (25 million KNC) from 3,100 unique addresses were staked on the KyberDAO within the first week.
As reported by Crypto Briefing, Kyber DAO attracted around 13.5 million KNC tokens in a mere three days. That was valued at over $21 million at the time. By July 25, the on-chain liquidity protocol had 58 million tokens staked, with 40 million votes recorded in the first Epoch. An epoch is a period of time when voting on governance proposals occurs. Those figures were supported by Binance’s implementation of KNC staking.
Token Holders Embrace Participation
Since the launch of Katalyst, the Kyber Network community has embraced its role in network decisions. In the first Epoch, over 2,500 unique voters voted on the Burn/Reward/Rebate (BRR) proposal to decide if there should be changes to the existing network fee parameters. Network fees are collected from trading activities on Kyber Network.
Kyber recently concluded its first KyberDAO Proposal, where the KNC community voted on-chain for the first time on the allocation of network fees that goes towards burning KNC, voting rewards, or reserve rebates (BRR). Roughly 80% of the community voted to increase the Voting Rewards to 70% and lower KNC burns and Reserve Rebates to 4.3% and 25.7%, respectively. Users need to stake tokens in the previous Epoch to vote and earn rewards in the following one.
Over 420 ETH, or ~$135,000, in fees was collected over the past 10 days. Voting rewards continued increasing until the first Epoch finished on Jul. 28. According to Loi Luu, Co-Founder at Kyber Network:
“KyberDAO is helping to align incentives between different stakeholders in the Kyber ecosystem and enabling the community to be more involved in project development. We’re proud that the first KyberDAO vote concluded successfully with one of the highest on-chain participation rates for a DAO on Ethereum.”
As Kyber’s DAO continues to grow, the network is helping shape the future of decentralized governance in DeFi.