0. Background
Contribution Reward (CR) is Kaia’s contribution reward system, approved by the [GP-21] on-chain vote. Initial operating parameters were disclosed in the [GP-21] Contribution Reward (CR): Initial Operating Parameters post.
CR is an overarching system providing additional rewards for network contribution. Because the target KPI may change with ecosystem strategy, the Foundation runs CR in phases defined by target KPI (Missions). The first phase, now in operation, is CR Mission-1, targeting USDT TVL expansion and KAIA staking activation. Any later mission with a different KPI will be announced separately.
Based on the current phase, CR Mission-1, this guide discloses in advance how the Foundation operates CR: the parameters CR runs under, the metrics used to judge operating status, the procedures for adjusting parameters or Eligible Protocols, and when and how results are disclosed.
CR is not fixed to its initial parameters; it follows the goals of the Kaia ecosystem. To adjust parameters, Eligible Protocols, or operating policies, the Foundation reviews per the standards disclosed here, gives prior notice, and applies the change from the next Epoch. Disclosing these standards in advance keeps CR’s purpose and operation transparent and predictable.
For step-by-step participation, see the user guide. Detailed application criteria, the latest parameter values, and the official launch schedule follow the Foundation’s official channels.
1. CR Mission-1 Participation Structure and Conditions
CR pays rewards in proportion to network contribution, based on USDT deposits and KAIA staking. Target KPIs and Eligible Protocols are set and operated per ecosystem strategy.
1-1. Participation Prerequisite and Structure
CR participation requires KAIA staking (or delegation); the USDT deposit limit is based on the staked amount. Participants who additionally deposit USDT into an Eligible Protocol receive the CR reward.
| Participant | Basis for Limit Calculation | Participation Method |
|---|---|---|
| GC (Governance Council) | GC’s direct stake (self-stake) | Deposits USDT within the limit; direct CR participation |
| General user | KAIA delegated to a GC (Public Delegation) | Deposits USDT within the limit; receives CR rewards |
| Item | Detail |
|---|---|
| USDT deposit limit ratio to KAIA staking (delegation) | 10 KAIA : 1 USDT |
| USDT deposit | Optional, within the staked (delegated) limit |
This ratio is not a KAIA/USDT value-exchange rate; it is the basis for calculating the USDT deposit limit from the staked (delegated) amount.
1-2. Basic Conditions for Contribution Recognition
All conditions below must be met simultaneously for that Eligible Period (10 days) contribution to be recognized. For the Period/Epoch relationship, see 2-2.
| Condition | Description | |
|---|---|---|
| 1 | Maintain USDT deposit | Keep the USDT deposit in an Eligible Protocol for the whole Eligible Period |
| 2 | Maintain KAIA staking | Keep KAIA staking (delegation) for the whole Eligible Period |
| 3 | Same-wallet principle | USDT deposit and KAIA staking must use the same wallet address. Multiple wallets can be grouped if pre-registered |
| 4 | min-balance basis | The Period minimum (min-balance) is the recognized contribution amount |
Timing is critical:
- Deposits or staking added during a Period are not reflected in that Period; they count from the next Period.
- Withdrawing USDT or unstaking KAIA mid-Period means the amount for that Period is not recognized as a contribution.
1-3. Recognized Assets
USDT and KAIA count as contributions only via a Foundation-designated protocol.
| Asset | Recognized Scope |
|---|---|
| USDT | Kaia Native USDT in Eligible Protocols (SuperEarn, Unifi). (*excludes wrapped, bridged, synthetic, etc.) |
| KAIA staking | GC direct staking (incl. 5M KAIA node minimum-maintenance requirement), Public Delegation staking, and Foundation-agreed LST protocols (Lair Finance stKaia, SwapScanner gcKaia) |
Recognized assets and protocols are not fixed; the Foundation may add or change them per Chapter 4. The latest list follows official announcements.
1-4. CR Commission
A GC receives a Commission on the CR rewards that users delegating to its node earn through USDT deposits. This is a node-operation revenue path separate from the GC’s own direct CR participation rewards.
| Item | Detail |
|---|---|
| CR Commission rate | Set autonomously by each GC (registered rate applies) |
The rate is a competitive factor in users’ choice of GC. A user’s net reward is their CR reward minus that GC’s Commission. The Commission applies to the CR reward only and is unrelated to the Staking Reward (SR). Setting and changing the rate is within each GC’s authority; participants should check the GC’s registered rate when delegating.
2. Core Parameters and Reward Calculation
2-1. Core Parameters
| Parameter | Value | Note |
|---|---|---|
| USDT TVL Cap | 50,000,000 USDT | CR target TVL and reward-calculation reference |
| KAIA Matching Ratio | 1 USDT : 10 KAIA | 10 KAIA staked per 1 USDT recognized |
| KAIA Staking conversion target | 500,000,000 KAIA | TVL Cap x Matching Ratio. Not a staking cap |
| Monthly Reward Budget | 2,500,000 KAIA | Total reward budget per Epoch (*from the existing Proposal Reward, 30,000,000 KAIA/year) |
| KPI Epoch (settlement cycle) | 2,592,000 blocks (approx. 30 days) | Settlement/payout unit. 1 Epoch = 3 Eligible Periods |
| Eligible Period (recognition cycle) | 864,000 blocks (approx. 10 days) | Basic unit of contribution recognition and reward calculation |
| Reward Vesting | 6-month linear release | Equal rate each month (16.67%) |
| Burn cycle | Batch burn after 3 Epochs elapse | Undistributed rewards burned on-chain |
The 50M USDT TVL Cap is an initial target the Foundation designed considering on-chain capital activation (improving stablecoin deposit utilization), deposit-based liquidity circulation (Money Lego), and the structural stability of incentive yields. For the detailed basis, see the [GP-21] Initial Operating Parameters post
2-2. Recognition Unit (Period) and Settlement Unit (Epoch)
For participants, the Period is the unit of the maintenance obligation; the Epoch is the unit of settlement.
| Category | Period | Epoch |
|---|---|---|
| Length | Approx. 10 days (864,000 blocks) | Approx. 30 days (2,592,000 blocks) = 3 Periods |
| Role | Basic unit of recognition and reward calculation | Settlement, distribution, disclosure unit |
| Participant view | Deposit and staking maintained throughout for that Period to count | 3 Periods’ rewards summed and settled after the Epoch ends |
| Operational view | Recognition and rewards calculated per Period independently | Boundary for parameter changes and reports |
Each Period is judged independently: even if Period 1 was not recognized due to a mid-Period withdrawal, maintaining from Period 2 onward means Periods 2 and 3 are recognized.
2-3. Recognized TVL Calculation
Recognized TVL, the basis for rewards, is the smaller of the USDT deposit and the KAIA staking amount converted at 1:10. Participating with only one side gives 0, so keeping both assets balanced matters.
Recognized TVL = min(USDT deposit, KAIA staked amount / 10)
| Example | USDT | KAIA | Recognized TVL |
|---|---|---|---|
| Balanced | 10,000 | 100,000 | 10,000 USDT |
| KAIA short | 10,000 | 50,000 | 5,000 USDT |
| KAIA excess | 10,000 | 200,000 | 10,000 USDT |
| USDT short | 5,000 | 80,000 | 5,000 USDT |
2-4. Reward Calculation
Rewards are calculated per Eligible Period. The Period budget is 833,333 KAIA (= monthly budget 2,500,000 / 3).
- Total participation at or below the TVL Cap:
- Period reward = (participant Recognized TVL / 50,000,000) x 833,333 KAIA
- Total participation above the TVL Cap:
- Period reward = (participant Recognized TVL / total Recognized TVL) x 833,333 KAIA
Final Epoch reward = Period 1 + Period 2 + Period 3
* Reference example: a Recognized TVL of 10,000 USDT held for one Epoch yields approximately 167 KAIA per Period, about 500 KAIA per month (below-Cap range).
The reference reward rate below Cap is the monthly budget divided by the Cap: 0.05 KAIA / USDT / month. This is an upper bound that may be paid, not a guaranteed value. Above Cap, the denominator switches to total Recognized TVL and per-person reward falls proportionally, which is normal by CR design.
Rates and examples here are before GC Commission deduction, so delegating users’ actual receipts may be lower (see 1-4).
2-5. Nature of the Parameters
| Category | Parameter | Nature |
|---|---|---|
| Target value | TVL Cap | Target TVL and the reward-rate denominator. Adjustment reviewed per operating conditions, details disclosed transparently |
| Operating value | Matching Ratio | Participation condition. Adjustment reviewed per operating conditions, details disclosed transparently |
| Fixed value | Monthly Reward Budget | Fixed in the contract. Not changeable by operations; a governance matter |
3. Parameter Operating Standards
Core parameters may be adjusted per operating metrics, with review and adjustment performed by the Foundation. They are never changed arbitrarily: the Foundation reviews them per the metrics and procedures below and gives prior notice of any change.
3-1. Operating Metrics the Foundation Watches
The Foundation evaluates CR’s operating status each Epoch using these metrics.
| Metric | Definition | What It Judges |
|---|---|---|
| Recognized TVL | Total contribution meeting recognition conditions | Recognized liquidity CR created |
| TVL Cap Usage | Recognized TVL / TVL Cap | Achievement rate against target |
| Burn Ratio | Undistributed rewards / monthly budget | Budget utilization rate |
| Retained TVL | Prior Epoch recognized TVL retained | Inflow durability |
| TVL per KAIA | Recognized TVL / monthly budget | TVL formed per reward budget |
| Reward Density | Cap / total Recognized TVL (when exceeded) | Per-person dilution under excess demand |
CR is operating well when recognized TVL is close to the Cap so burn is low, inflowed TVL is retained into the next Epoch, and dilution is managed even under excess demand.
The CR reward source is not new issuance but a reallocation of existing Proposal Reward issuance. Operating judgments rest on TVL-formation efficiency relative to the allocated reward budget, and parameters are not changed frequently on the grounds of short-term market fluctuations.
3-2. Factors Considered When Reviewing Adjustments
When reviewing whether an adjustment is needed, the Foundation considers factors such as those below (illustrative perspectives, neither exhaustive nor fixed).
| Reference Factor | Perspective Examined |
|---|---|
| Participation structure (USDT deposit and KAIA matching) | Whether the participation condition deters participation, or is too low |
| Recognized TVL scale and retention rate | Whether inflows are sustained, or short-term/speculative/abusive |
| Achievement rate against target (Cap) and reward density | Target-level appropriateness and impact on participant rewards |
| Participation-deterring factors | Causes of low participation (conditions, accessibility, campaigns, etc.) |
These are reference criteria only: observing a situation does not make an adjustment automatic or guaranteed. The Foundation prioritizes stable operation, favoring careful review and root-cause diagnosis over hasty change.
3-3. Procedure When an Adjustment Is Made
- The change is announced at least 7 days before the start of recognition of the applicable Epoch.
- It applies from the start of the next Epoch, never retroactively to an Epoch in progress.
- Detailed evaluation baselines and internal judgment materials are managed as the Foundation’s internal operating materials, within the scope of the metric system and procedures disclosed here.
4. Eligible Protocol Operating Standards
Protocols recognized for CR contribution (Eligible Protocols) are designated by the Foundation per clear selection criteria. This chapter covers the standards and procedures for designation and change.
4-1. Initial Eligible Protocols
| Category | Protocol | Role |
|---|---|---|
| USDT deposit | SuperEarn | Stablecoin yield orchestration protocol. Secures DeFi-based liquidity |
| USDT deposit | Unifi (LINE NEXT) | Asia-targeted stablecoin payment and yield wallet. Mass liquidity inflow path |
The basis for designating SuperEarn and Unifi (operational stability, ecosystem role) is disclosed in detail in the [GP-21] Initial Operating Parameters post
4-2. Protocol Selection Criteria
As the ecosystem expands, the Foundation reviews additional designations per these criteria.
| Criterion | What Is Checked |
|---|---|
| Strategic importance | Role and necessity in the on-chain financial ecosystem; future positioning |
| Security and operational stability | Independent external security audit passed, critical vulnerabilities resolved, incident-response framework |
| Yield sustainability | Own baseline revenue structure, maintainable without incentives |
| On-chain verifiability | CR contributions calculable and reconcilable on-chain or verifiably |
| Deposit/withdrawal and liquidity handling | Liquidity and response framework for expected inflow/outflow |
A new protocol becomes eligible only after it is confirmed to meet these criteria and is officially designated. If some criteria are unmet, designation is deferred until remediation is confirmed; designation and recognition start times are announced by official notice.
4-3. Principles for Designation Change (Transition)
Addition, reduction, or transition proceeds by the Foundation adjusting the recognition scope per an announced schedule, rather than relying on participants’ voluntary movement of funds.
| Method | Progression | When Applied |
|---|---|---|
| Phased transition | Existing path stays recognized, new path recognized in parallel, then transitions to new-path focus per an announced schedule | Existing path is large, the new path needs a verification period, or participant impact must be reduced |
| Immediate transition | After prior notice, existing recognition ends and new recognition begins simultaneously in the designated Epoch | Existing path is small and the new path is sufficiently verified |
When reviewing a transition, the Foundation evaluates and records new contribution (new TVL and users, not mere movement), security, withdrawal-handling capability, improvement in user value, impact on the existing path, and impact on reward density. The parallel period and notice schedule for each transition are finalized and announced in the relevant transition notice.
4-4. Participant Guidance Upon Change
When an Eligible Protocol changes, these items are provided in a single notice.
| Item | Guidance Content |
|---|---|
| Recognition scope and deadline | Which funds on which path are recognized, and until when |
| Required action | Whether fund movement is needed, and by when |
| Handling of new deposits | From when and how new deposits are handled |
| Reward impact | Post-change recognition scope, applicable Epoch |
4-5. Emergency Suspension
If a critical issue such as a security incident, settlement failure, or data manipulation is confirmed, the Foundation may immediately suspend contribution recognition for that protocol path. This protects participants and the integrity of CR operation and may apply without prior notice; the reason and handling policy are announced after application.
The suspension period, and that Epoch’s contribution recognition and reward handling, are decided by post-hoc review depending on the nature of the matter and data verifiability; the handling standards are announced by notice.
5. Settlement, Payout, and Burn Operation
5-1. Settlement Cycle
| Stage | Timing | Content |
|---|---|---|
| Epoch end | End of each Epoch (block basis) | That Epoch’s recognition period ends |
| Data collection and verification | Approx. 2 weeks after Epoch end | Collect/verify on-chain and partner data; compute rewards |
| Distribution reflection | Target within approx. 2 weeks after Epoch end | Finalized rewards reflected in the contract; Vesting begins |
Distribution reflection may be delayed by a data error, contract issue, security incident, etc.; if delayed, the reason and expected schedule are announced. Month-based periods shown to participants are approximations; the actual settlement basis is the block-based Epoch.
5-2. Settlement of Verified Data
Only data submitted within the set deadline and verifiable is included in an Epoch’s settlement.
- Automatic-indexing paths (e.g., USDT deposits, Public Delegation): the Foundation collects and verifies on-chain data directly.
- Partner-submission paths (e.g., LST): submitted data is included only when cross-verified against on-chain values.
- Data not submitted by the deadline or not verified may be excluded from that Epoch’s settlement; that contribution is then not recognized, and the resulting undistributed budget is added to the burn total.
- Because the reward budget for excluded contributions becomes subject to burn for that Epoch, they are not retroactively rewarded in a later Epoch.
- Contributions during a protocol outage, data error, etc. may not be recognized. The handling standard follows the operating standards between the Foundation and the relevant partner; any impact is announced by notice.
5-3. Claim and Vesting
Rewards are not paid in full immediately; they are released via 6-month linear Vesting.
| Item | Basis |
|---|---|
| Vesting structure | 6-month linear, 16.67%/month (cumulative 100%) |
| First release time | From 1 month after that Epoch’s settlement completes |
| Auto Staking | None. Rewards are not auto re-staked |
| Claim | Check the released amount on the dashboard, then receive |
| Elapsed after settlement | Cumulative release |
|---|---|
| 1 month | 16.67% |
| 2 months | 33.33% |
| 3 months | 50.00% |
| 6 months | 100.00% |
- A separate Vesting schedule is created per Epoch’s reward, so with continuous participation multiple Epochs’ releases may overlap in the same month.
- If settlement is delayed, the Vesting start and subsequent schedule are delayed too. If a handling standard for long-unclaimed rewards is needed, it is announced by separate notice.
- The Expected Reward shown on the dashboard is a reference value before settlement is finalized and may differ from the finalized value due to total participation scale (dilution), recognition exclusions, etc. The final basis is the finalized reward reflected in the contract.
5-4. Burn
- The burn amount is calculated each Epoch: undistributed rewards = monthly budget 2,500,000 KAIA − distributed rewards.
- Burn execution runs the accumulated amount as a batch on-chain transaction every 3 Epochs.
- After execution, the transaction and cumulative burn amount are disclosed in the monthly operating report.
5-5. Errors and Emergency Response
| Situation | Handling |
|---|---|
| Critical data error, contract issue, security incident | Distribution withheld or payout temporarily paused (Pause) |
| Error found before reward reflection | Proceed after recalculation and re-verification |
| Error found after reward reflection | Withhold, confirm scope of impact, then adjust or correct |
If an error (overpayment, mispayment, etc.) is confirmed in rewards already paid or finalized, a deduction from later Epoch rewards or a separate adjustment procedure may apply. After error handling, a correction note with the handling details, scope of impact, and follow-up measures is issued. If a pause is applied, the resumption schedule and handling results are announced.
6. Disclosure of Operating Results (Reporting)
6-1. Disclosure Framework
| Disclosure | Cycle | Channel |
|---|---|---|
| Monthly operating report | Each Epoch | Kaia Square, Governance Forum |
| KPI review | Quarterly by default (additional review as needed) | Governance Forum |
| Change notice | Ad hoc (when a change occurs) | Kaia Square, Governance Forum |
| Emergency notice | Immediately upon occurrence | All official channels at once |
Additional KPI review may occur depending on the market environment or ecosystem conditions. If review finds an adjustment is needed, the change is announced in advance and finalized by the Foundation after opinions are gathered.
6-2. Items Included in the Monthly Report
Figures are marked by verification type: on-chain verified figures can be confirmed by anyone via transactions, and Foundation-calculated figures are disclosed with their basis of calculation.
| Included Item | Content | Verification Type |
|---|---|---|
| Epoch overview | Target period (blocks), applied parameters, recognition conditions | Foundation report |
| Participation status | Recognized TVL, TVL Cap Usage, participating wallet count | Foundation calculation |
| Reward distribution results | Total KAIA paid, distribution basis, Distribution TX | On-chain verified |
| Burn status | This Epoch’s burn amount, cumulative undistributed, Burn TX on execution | On-chain verified |
| Next Epoch changes | Finalized parameters, Eligible Protocol changes | Foundation report |
| Participant action guidance | Whether participant action is needed next Epoch | Foundation report |
| Inquiry and feedback path | Channel for receiving inquiries | N/A |
6-3. Disclosure Timeline
| Timing | Content |
|---|---|
| Epoch end | That Epoch’s recognition period ends |
| Approx. 2 weeks after end | Settlement completed, distribution reflected (target) |
| Within a few days after the distribution transaction is confirmed | Monthly report posted. Target: within 3 weeks after Epoch end |
| Every 3 Epochs | Burn execution and Burn TX disclosed (in that month’s report) |
The monthly report is posted only after the distribution transaction is confirmed on-chain. Unconfirmed payout amounts, unconfirmed burn amounts, and internal estimates are not disclosed while distribution or burn is incomplete. If settlement is delayed, the report is delayed accordingly and the delay is separately announced.
6-4. Scope and Boundaries of Disclosure
- Distribution details are included in on-chain transactions, so individual confirmation is possible on-chain.
- The Foundation’s internal analysis, judgment materials, and abuse-monitoring framework are not disclosed, to protect the integrity of CR operation.
- The report distinguishes finalized values from reference values and does not use expressions of expected yield or guarantee. Where there was a delay or error, the scope of impact and handling status are stated.
7. Partner Operating Rules
CR contribution recognition presupposes the data and operational cooperation of Eligible Protocols (partners). The detailed standards for contribution recognition by protocol, the data-handling methods, and the operational obligations partners must observe are published as a separate page for length reasons: [CR] Contribution Reward Partner Operating Rules. Participants can use that page to check how contributions from the protocol they use are aggregated and verified.
8. Policy Change Management
The parameters, Eligible Protocols, and operating policies disclosed here may be changed by the Foundation per the procedures below. No change is applied retroactively without notice.
| Change Type | Prior Notice | Effect |
|---|---|---|
| Parameter change (TVL Cap, Matching Ratio, etc.) | At least 7 days before the applicable Epoch’s recognition starts | From the next Epoch, no retroactivity |
| Contribution-recognition rule change (recognition conditions, recognized assets, calculation method, etc.) | At least 7 days before the applicable Epoch’s recognition starts | From the next Epoch, no retroactivity |
| Eligible Protocol addition, reduction, transition | Additional advance notice once the transition notice fixes the schedule | From the announced Epoch |
| Emergency measures (security, network stability) | Can be applied immediately | Immediately. Reason and handling policy announced after |
- The 7-day standard gives participants a response window: if the Matching Ratio changes from the next Epoch, participants have at least 7 days after the notice to adjust their deposit and staking composition.
- Contribution-recognition rules here mean the standards by which a participant’s contribution is recognized: the basic conditions (1-2), recognized assets (1-3), and the Recognized TVL calculation method (2-3).
- Matters in the governance domain may change per Kaia governance decisions, following the relevant governance procedures and notices. The Foundation does not guarantee CR’s indefinite continuation or the maintenance of any particular reward level; if the program is adjusted, suspended, or terminated, prior notice is the principle. This guide is version-managed: when its content changes, the version is updated and the changes are announced.
9. Important Notes
Please check the following before participating.
- Rewards are not guaranteed. They vary each Epoch with total participation scale and your own recognized contribution amount, and if total participation exceeds the Cap, the per-person reward falls proportionally. This dilution is normal by CR design, and the same applies when total participation grows through the addition or parallel recognition of Eligible Protocols.
- A delegating user’s net reward is the amount after GC Commission deduction. Rates and examples in this guide are before Commission deduction, and setting and changing the rate is within each GC’s authority.
- All schedules are operating targets, not guarantees. Settlement, distribution, Vesting start, and report posting may be delayed depending on data verification, contract, and security conditions; delays are announced.
- Eligible Protocols are independent operating entities separate from the Foundation. The Foundation does not guarantee their operation, yield, or asset safety, and each protocol may carry smart-contract risk and market risk. Before participating, check each protocol’s official guidance and audit report. Inquiries on protocol use (deposit, withdrawal, wallet, etc.) are handled first-line by that protocol’s support channel; inquiries on CR calculation and payout should use the Foundation’s official channel.
- Contribution recognition may be excluded in some cases: failure to meet recognition conditions, withdrawal or unstaking during a Period, partner data non-submission or non-verifiability, protocol outage periods, or confirmed signs of abuse or manipulation. Contributions excluded from settlement are not retroactively rewarded in a later Epoch.
- If an error such as overpayment is confirmed in paid rewards, a deduction from later Epoch rewards or a separate adjustment procedure may apply, and the handling details are announced.
- Figures before finalization are reference values. Estimates shown on the dashboard or participating-protocol screens are references before settlement is finalized; the final basis is the settlement data verified and finalized by the Foundation and the finalized value reflected in the contract. If a displayed figure differs from the finalized value, the finalized value prevails.
- Policies may change. Changes apply through prior notice per Chapter 8, and matters in the governance domain follow Kaia governance decisions.
- CR’s continuation is not guaranteed. CR may be adjusted, suspended, or terminated per governance decisions, and the Foundation does not guarantee the program’s indefinite continuation or the maintenance of any particular reward level.
- Means of confirming participation and rewards follow official guidance. The scope and timing of provision of tools such as the dashboard follow the Foundation’s official notice, and if a value displayed by any such means differs from the settlement value verified and finalized by the Foundation, the finalized value prevails.
- On-chain transactions such as Claim may incur network fees.
- In some countries or regions, participation may be restricted per relevant regulations. Confirming eligibility to participate, and the responsibility arising therefrom, rest with the participant.
- Compliance with relevant laws and tax handling are the participant’s own responsibility.
- This document is for informational purposes and is not an investment solicitation.
10. Closing
This guide is the baseline for CR operation. The Foundation operates CR per the metrics and procedures disclosed here, discloses operating results each Epoch as a principle, and proceeds through prior notice when parameters or Eligible Protocols need adjustment.
Please leave inquiries and opinions on the operating standards or this guide’s content through the Governance Forum. For step-by-step participation, see the user guide. Thank you.