Governance Tokenomics

The Governance Tokenomics Process in the Agentic Kindred Protocol establishes the framework for decentralized decision-making, incentivizing participation, and maintaining a sustainable ecosystem. Governance is conducted through a dual-DAO framework: the Kindred DAO oversees protocol-wide governance, while AS-DAOs manage agent-specific governance. Governance tokens and agent-specific tokens work together to empower the community, fund ecosystem development, and drive sustainability.

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Core Objectives

1. Decentralized Decision-Making:

   • Kindred DAO governs protocol-wide decisions, such as tokenomics, treasury management, and ecosystem-wide policies.

   • AS-DAOs govern agent-specific decisions, such as bonding curve parameters, feature updates, and treasury allocations.

2. Incentivization:

   • Reward contributors, stakers, and active participants to encourage engagement and ensure ecosystem growth.

3. Economic Sustainability:

   • Maintain long-term viability through strategic fund allocations and revenue generation at both global and agent levels.

4. Transparency and Fairness:

   • Ensure governance is inclusive, transparent, and resistant to centralization.

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Governance Framework

Kindred DAO Responsibilities

• Approve protocol-wide proposals, such as:

  • New agent genesis and AS-DAO creation.

  • Treasury allocations for ecosystem development.

  • Governance token staking rewards.

• Oversee the integration of new technologies, upgrades, and security measures.

• Manage the Kindred DAO treasury.

AS-DAO Responsibilities

• Manage agent-specific governance, including:

  • Bonding curve adjustments.

  • Treasury allocations for agent-specific maintenance and feature updates.

  • Revenue distribution from agent-specific services.

• Approve and execute proposals directly affecting the agent’s economy and functionality.

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Technical Workflow

1. Token Creation and Distribution

Governance Tokens (Global):

• ERC-20 tokens representing voting power in the Kindred DAO.

• Tokenomics:

  • Fixed total supply with an initial allocation to founders, community pools, and staking rewards.

  • Distributed through:

    • Staking rewards for governance token holders.

    • Contributor incentives for ecosystem-wide improvements.

Agent Tokens (Agent-Specific):

• Each AS-DAO governs its unique agent token, created during the agent genesis process.

• Tokenomics:

  • Bonding curve parameters, reserve ratios, and token utility are determined and managed by the AS-DAO.

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2. Governance Mechanisms

Proposal Submission:

• Token holders submit proposals to the respective DAO for protocol or agent-specific governance.

• Proposals include:

  • Kindred DAO: Protocol-wide decisions such as treasury allocations and tokenomics updates.

  • AS-DAOs: Agent-specific decisions such as updates, feature integrations, or bonding curve adjustments.

Submission Workflow:

solidityCopy codefunction submitProposal(
    string memory title,
    string memory details,
    uint256 fundingRequest,
    bool isGlobal
) public returns (uint256) {
    uint256 proposalId = _generateProposalId();
    proposals[proposalId] = Proposal({
        proposer: msg.sender,
        title: title,
        details: details,
        fundingRequest: fundingRequest,
        isGlobal: isGlobal,
        votesFor: 0,
        votesAgainst: 0,
        status: ProposalStatus.Pending
    });
    emit ProposalSubmitted(proposalId, msg.sender, title);
    return proposalId;
}

Voting:

• Token holders vote on proposals during a defined voting period.

• Kindred DAO Voting:

  • Weighted by governance tokens held or staked.

  • Requires quorum participation from global token holders.

• AS-DAO Voting:

  • Weighted by agent-specific tokens held or staked.

  • Requires quorum participation from AS-DAO token holders.

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3. Incentivization Mechanisms

Staking:

• Both governance tokens and agent-specific tokens can be staked for rewards and enhanced voting power.

• Rewards are funded by the respective treasury:

  • Kindred DAO Treasury: Staking rewards in governance tokens.

  • AS-DAO Treasury: Staking rewards in agent tokens.

Contributor Rewards:

• Governance tokens and agent tokens are distributed as rewards for contributors providing datasets, models, or community support.

• Rewards are approved by the respective DAO.

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4. Treasury Management

Kindred DAO Treasury:

• Funded by:

  • KIN tokens collected during agent genesis.

  • A portion of transaction fees from protocol-wide activities.

• Allocates funds for:

  • Staking rewards.

  • Ecosystem-wide development grants.

  • Community incentives.

AS-DAO Treasury:

• Funded by:

  • Token sales during IAOs.

  • Transaction fees from agent-specific services.

• Allocates funds for:

  • Feature updates.

  • Liquidity provisioning.

  • Contributor rewards.

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5. Governance Token and Agent Token Use Cases

Governance Tokens (Global):

• Voting: Participate in Kindred DAO proposals.

• Staking: Lock tokens to earn rewards and boost voting power.

• DeFi Utility: Usable as collateral in DeFi platforms.

Agent Tokens (Agent-Specific):

• Governance: Vote on AS-DAO proposals.

• Staking: Earn rewards and influence AS-DAO decisions.

• Utility:

  • Access agent-specific services and premium features.

  • Purchase NFTs or customizations for the agent.

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Example Use Case: Dual-DAO Governance in Action

Scenario:

• A contributor proposes a new feature for an agent that requires 10,000 agent tokens for development.

Workflow:

1. Proposal Submission:

   • The proposal is submitted to the agent’s AS-DAO with a funding request.

2. Voting:

   • Token holders in the AS-DAO vote on the proposal.

3. Approval:

   • If approved, the AS-DAO treasury disburses the requested funds to the contributor.

4. Execution:

   • The contributor develops and integrates the feature, enhancing the agent’s functionality.

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Security Measures

1. Smart Contract Audits:

   • Governance and staking contracts undergo rigorous audits to ensure security.

2. Access Control:

   • Only DAO-approved administrators can disburse funds from treasuries.

3. Quorum and Majority Rules:

   • Proposals require minimum participation and consensus to pass.

4. Reentrancy Protection:

   • Prevents exploits during voting, staking, and fund disbursements.

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Benefits of Dual-DAO Governance Tokenomics

1. Decentralized Governance:

   • Splits responsibilities between Kindred DAO (global) and AS-DAOs (agent-specific) for greater scalability.

2. Sustainability:

   • Treasury funds at both levels ensure long-term ecosystem support.

3. Community Engagement:

   • Token holders actively participate in decision-making through global and agent-specific governance.

4. Scalability:

   • The dual-DAO framework supports an expanding ecosystem with multiple agents, each governed by its AS-DAO.

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Conclusion

The Governance Tokenomics Process in the Agentic Kindred Protocol integrates Kindred DAO and AS-DAOs to create a scalable, transparent, and decentralized governance system. This dual-DAO framework empowers token holders to participate actively in protocol-wide and agent-specific decisions, ensuring economic sustainability, incentivizing contributions, and aligning governance with the protocol’s growth and evolution. Through this structure, the protocol establishes a robust and engaging ecosystem for adaptive and intelligent agents.