Kindred
  • Overview
    • Introduction
      • Breathe Life Into AI
        • The Human Need for Connection
          • The Story Behind Kindred
          • The Role of Empathy in AI
          • Building Emotionally Intelligent AI
          • The Future of Human-AI Interaction
        • Personalized AI: From Assistance to Companionship
          • The Growing Need for Personalized AI
          • Kindred’s Approach: Emotional AI Agents
          • Impact Across Diverse User Groups
          • Privacy, Security, and Ethical Design
    • Pioneering New Possibilities Across Industries
  • The Problem
  • The Solution
    • What are Kindreds?
      • Mind
      • Body
      • Soul
      • Unified Interface
    • Licensed IP Partnerships
  • Product Roadmap
    • Phase 0: Pilot Campaigns
    • Phase 1: Genesis Open Beta
    • Phase 2: The Protocol
      • Agent Creation and Tokenization
      • Revenue Flow and Value Transfer
      • Governance and Incentives
      • Sustainable Ecosystem Design
    • Phase 3: Advanced AI Ecosystem
      • Comprehensive Task Execution
      • Autonomous Farming
      • Cross-Device Integration
      • Agent-to-Agent Interactions
      • All-In-One AI Ecosystem
    • Phase 4: Agentic XR
      • Key Capabilities of Agentic XR
      • Strategic Involvement and Future Potential
      • A Future Without Boundaries
  • Agentic Kindred Protocol on Blockchain
    • Overview
      • What is Agentic Kindred Protocol
      • How the Protocol Works
    • Core Infrastructure
      • Agent Genesis Contract
      • Immutable Contribution Vault (ICV)
      • Stateful AI Runner (SAR)
      • Long-Term Memory Processor (LTMP)
    • Liquidity and Tokenomics
      • Bootstrapping Liquidity and $Agent Token Usage
      • Initial Agent Offering (IAO) Process
      • Governance Tokenomics
    • AI and Interaction Layers
      • Emotion Engine
      • Cross-Platform Integration Layer (CPIL)
      • Coordinator
    • Governance and Contribution
      • Kindred DAO
      • Agent-Specific DAOs (AS-DAOs)
      • Contributor Lifecycle
    • API - (Coming Soon)
  • $KIN Tokenomics
    • Community-Driven IP Pooling and Co-Ownership
    • Protocol Treasury Allocation
    • Enhanced Offerings Within the Ecosystem
    • $KIN Emission Rewards and Governance
    • The $KIN Flywheel Effect
    • Tokenomics Structure
  • Leadership & Team
  • Important Links
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  1. Agentic Kindred Protocol on Blockchain
  2. Liquidity and Tokenomics

Bootstrapping Liquidity and $Agent Token Usage

Bootstrapping Liquidity and Agent Token Usage with AS-DAOs

The integration of Agent-Specific DAOs (AS-DAOs) into the Kindred Protocol enhances the governance, customization, and sustainability of agent tokenomics. Each AS-DAO governs the liquidity and utility of its associated $Agent tokens, enabling decentralized and tailored management of bonding curves, liquidity provisioning, and token usage. This structure ensures scalability, sustainability, and engagement within the ecosystem.

1. Agent Tokens

Overview

Agent tokens are ERC-20 tokens that underpin the unique economy of each deployed agent. These tokens are governed by their respective AS-DAO, allowing for agent-specific customization of tokenomics and governance processes.

Key Features

  • Liquidity: Guaranteed buy/sell functionality through bonding curves, governed by the AS-DAO.

  • Governance: Token holders influence agent-specific decisions via the AS-DAO.

  • Utility: Tokens unlock premium features, services, and integrations.

  • Rewards: Contributors and participants earn tokens as incentives, distributed by the AS-DAO treasury.

Updated Features with AS-DAOs

  • Dynamic Pricing: Token prices continue to adjust automatically based on demand using bonding curves, with parameters governed by the AS-DAO.

  • Decentralized Liquidity: Tokens are tradeable on DEXs, and liquidity pool creation is managed by the AS-DAO.

  • Fair Market Valuation: Bonding curves ensure transparent and algorithmic price discovery, with AS-DAOs determining curve configurations.

2. Bootstrapping Liquidity with Bonding Curves

What is a Bonding Curve?

A bonding curve is a mathematical model defining the relationship between token price and supply. As more tokens are minted (purchased), their price increases along the curve. Conversely, when tokens are burned (sold), the price decreases. AS-DAOs govern the parameters of these curves for their respective agents.

Core Mechanics

  • Dynamic Pricing Formula: P(S) = k × S^n

    • P(S): Token price at supply S.

    • k: Constant multiplier (base price).

    • n: Exponent controlling curve steepness.

  • Liquidity Guarantee: Tokens can always be bought or sold via the bonding curve, ensuring liquidity at all times.

  • Reserve Pool: A portion of funds from token purchases is stored in a reserve pool to facilitate redemptions, governed by the AS-DAO.

Workflow of Liquidity Bootstrapping

Step 1: IAO

  • Agent tokens are introduced during an IAO, allowing users to purchase tokens along the bonding curve.

  • The AS-DAO oversees the IAO, setting parameters such as:

    • Initial Supply: Starting number of tokens available.

    • Reserve Ratio: Percentage of funds allocated to the reserve pool.

    • Curve Formula: Determines price dynamics.

  • Funds raised in the IAO are allocated to:

    • Reserve Pool: Maintains liquidity.

    • AS-DAO Treasury: Funds agent-specific initiatives.

Step 2: Bonding Curve Initialization

  • AS-DAOs govern bonding curve parameters:

    • Reserve Ratio: Determines the portion of funds allocated for liquidity.

    • Initial Supply: Sets the starting token amount.

    • Curve Formula: Defines price growth and dynamics.

  • Bonding curves are implemented as smart contracts that handle token minting, burning, and pricing.

Step 3: Liquidity Pool Creation

  • Once a target supply or funding milestone is reached:

    • A portion of the reserve pool is used to create a liquidity pool on DEXs (e.g., Uniswap & Aerodrome Finance).

    • AS-DAOs manage external tradability and liquidity depth.

Technical Implementation

The bonding curve is implemented as a smart contract:

solidityCopy codefunction buyTokens(uint256 amount) public payable {
    uint256 cost = calculatePrice(amount);
    require(msg.value >= cost, "Insufficient funds");
    _mint(msg.sender, amount);
    reservePool += cost;
}

function sellTokens(uint256 amount) public {
    uint256 refund = calculatePrice(amount);
    _burn(msg.sender, amount);
    reservePool -= refund;
    payable(msg.sender).transfer(refund);
}

function calculatePrice(uint256 amount) public view returns (uint256) {
    return k * (totalSupply + amount) ** n; // Bonding curve formula
}

  • buyTokens(): Mints tokens and updates the reserve pool.

  • sellTokens(): Burns tokens and refunds the seller.

  • calculatePrice(): Calculates the cost or refund based on the bonding curve.

3. Post-Deployment Token Usage

Governance

  • Token holders influence agent-specific proposals through the AS-DAO, such as:

    • Enhancements or updates to the agent.

    • Allocation of treasury funds for development or new features.

    • Adjustments to staking rewards or tokenomics.

Utility

  • Premium Features: Tokens unlock advanced emotional intelligence, custom behaviors, or exclusive agent capabilities.

  • Service Payments: Tokens are used to pay for agent services, such as financial advice or interactive content.

Rewards

  • Staking: Token holders earn rewards by staking in AS-DAO-approved pools.

  • Contributor Compensation: Contributors providing datasets, models, or enhancements are rewarded in $Agent tokens, distributed by the AS-DAO treasury.

DeFi and Marketplace Integration

  • DeFi: Tokens can be traded, lent, or borrowed on DeFi platforms.

  • NFT Marketplaces: Tokens can purchase agent-specific customizations, such as visual skins or voice packs.

4. Enhanced Benefits of AS-DAO Integration

Benefit

Description

Scalability

Each AS-DAO governs its own agent-specific tokenomics, enabling decentralized scaling.

Sustainability

Treasury funds and reserve pools are managed by the AS-DAO, ensuring tailored sustainability.

Engagement

Token holders actively participate in AS-DAO governance and benefit from staking rewards.

Example Workflow

Bootstrapping Liquidity

  1. IAO Launch:

    • The AS-DAO sets parameters for the IAO, including token allocation and bonding curve details.

    • Users purchase tokens, seeding the reserve pool and AS-DAO treasury.

  2. Bonding Curve Setup:

    • The AS-DAO approves reserve ratios, initial supply, and curve steepness.

    • The bonding curve contract ensures dynamic pricing and liquidity.

  3. Liquidity Pool Creation:

    • The AS-DAO allocates reserve funds to create DEX liquidity pools.

Token Usage

  1. Governance:

    • Token holders vote on AS-DAO proposals for agent updates or new features.

  2. Utility:

    • Users spend tokens to access premium services or features.

  3. Rewards:

    • The AS-DAO distributes staking rewards and contributor compensation.

Conclusion

The integration of AS-DAOs into the Kindred Protocol transforms the governance, liquidity, and utility of agent tokens. By empowering AS-DAOs to manage bonding curves, liquidity provisioning, and post-deployment tokenomics, the protocol achieves a scalable, sustainable, and engaging ecosystem. This decentralized structure ensures that agent tokens retain their utility and value, aligning tokenomics with the growth and evolution of individual agents.

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Last updated 2 months ago