# Tokenomics

## Overview​

Total initial supply: 200,000,000 $KNOW 200M$KNOW are minted at launch and subject to cliff and vesting terms, detailed below.

The distribution, cliff and vesting terms are the following:

AllocationTGECliffVesting
Investors*23,7%5%6 months30 months linear vesting
Foundation30%10%/60 months linear vesting
Team & Advisors19%5%12 months36 months linear vesting
Airdrops5%TBDTBDTBD
DAO Treasury22,3%10%//
• Tokenomics are indicative and are subject to changes before mainnet launches

Maximum supply: 350,000,000 $KNOW (including block rewards, reached after 80 years) The additional 150M tokens are released as block rewards (also called staking rewards) for Validators and Delegators over the 80 years following the launch. Here are the details regarding the different allocations: ## Distribution​ ### Investors​ These tokens are distributed to investors in the differents rounds from pre-seed to seed who contributed to the development of OKP4. ### Foundation (strategic reserve)​ This strategic reserve will be controlled by a multisig comprised of foundation members. Initially composed of members from the core team and Cosmos community, it is subject to expansion and transparent decision-making. The funds will focus on many initiatives, including: • Development: the foundation will lead the protocol development strategy with OKP4 core team. In addition to that, opportunities will be given outside of the core team through initiatives such as grants. These will be proposed by the foundation and the proposals will be reviewed by the foundation's governance body. • Validators support: Vested tokens will be delegated to the validators whose contribution is most impactful, such as integrations, specific developments, relayer services, open source tooling and dashboards, community engagement... • Research: research will be investigated by the foundation, with a view to finding new areas of improvement and innovation for the Protocol and its ecosystem. • Marketing & Incentives: Through events (hackathons, conferences, on-chain competitions...), communication, these activities will focus on building a network of Builders, Data Providers, Services Providers and Users. • Listing, Market-making, Additional liquidity provision ### Team & Advisors​ In order to build a world-class team, these tokens will reward the core team and project advisors. These tokens will be split between founders, equity investors, advisors, current and future team members. It is also a way to increase the retention of the employees over the distribution period so that the roadmap goes on as planned. ### Airdrops​ 👀 ### DAO Treasury​ • Grants: our open-source Protocol advocates rapid technological progress thanks to the many paid contributors. On the one hand, the DAO will propose on-chain tasks to be done for a certain remuneration in$KNOW tokens. On the other hand, if you have an idea to improve the Protocol, you can propose your idea to the DAO. They will be voted according to their relevance to the success of the network, the technical design and the overall quality of the team. By the community, for the community.
• LP incentives: Liquidity Deposit Incentive Program offering a number of tokens in monthly rewards for liquidity providers. Liquidity providers earn rewards based on their percentage share of the overall liquidity pool.
• Liquidity DEXs: in a situation where we need more liquidity than initially planned (especially if many Data Spaces decide to create their token), a part of this wallet is reserved for additional liquidity.

## Emission​

### Staking rewards​

Validators and Delegators are crucial to ensuring security of the OKP4 Blockchain and help with block proposing, verification and validation.

The roles of Validators could expand to provide oracles, IBC channels and other protocol-related services, making them critical participants.

Block reward for Validators and Delegators will depend on the inflation number that starts at 15% of total supply excluding block rewards (15% of 200M tokens) on the first year and then decreases by 20% each year:

YearInflation (for the year)
115%
212%
39.6%
47.68%
56.144%
$\vdots$$\vdots$
$n$$15\%\cdotp(1-20\%)^{n-1}$

Staking APR will obviously be higher than the numbers quoted above, depending on the circulating supply and percentage of the circulating supply staked.