6. Governance and Tokenomics

6.1 Governance Overview

KTON follows a progressive decentralisation model.

Voting Power

Token	Purpose	Voting Weight
$KTON	Liquidity token & governance power	1x (per jetton)

Core Modules

• Parameter Committee — Adjusts APY targets, fees, withdrawal buffer.

• Operator Committee — Whitelists / slashes node operators.

• Treasury Committee — Allocates budget for audits, liquidity mining and R&D.

All modules operate under the Timelock Executor described in Chapter 5.

6.2 Token Supply & Distribution

KTON does not employ a separate governance token at this stage. Voting rights and economic exposure are both represented by $KTON itself. Therefore, no additional token supply schedule is required.

Allocation	Notes
Staking Rewards	Reflected via $KTON exchange-rate growth
Treasury Reserve	Managed by DAO using $KTON inflows

6.3 Fee Model

• Validator Rewards Fee: A configurable share (set by DAO) goes to treasury.

• Instant Withdrawal Fee: Dynamic fee; its distribution between burn and treasury is determined by governance.

• MEV Rewards: Split between node operators and nominators based on a DAO-approved formula.

6.4 Treasury Management

Treasury assets (TON, KTON, USDT) are held in a multisig wallet. Expenditures require DAO proposal approval and timelock execution.

Typical budget items:

• Security audits & formal verification.

• Liquidity incentives (DEX pools, lending markets).

• Ecosystem grants for wallets, analytics, DeFi integrations.

• Community marketing & hackathons.

6.5 Road to Full Decentralisation

Phase	Milestone	Control Level
Alpha	Mainnet launch, Council multisig	Centralised
Beta	Governance token distribution	Hybrid
Gamma	On-chain voting live	Decentralised
Delta	Sub-DAOs activated	Fully decentralised

Next: 7. Security and Audits