Introduction to KTON

KTON is a liquid staking protocol on The Open Network (TON). It lets you put your Gram to work earning validation rewards while keeping a token you can hold, move, or use elsewhere. You stake Gram, you receive KTON, and your KTON grows in value automatically as the protocol earns. There is nothing to claim, no rewards to harvest, and no positions to manage day to day.

This page explains what KTON is, the words we use, how the token works, and why the protocol is built the way it is.

A word on terminology: Gram and TON

Throughout this documentation we keep two terms separate on purpose:

• TON is the network: The Open Network, the blockchain that everything runs on.

• Gram is the asset: the coin you deposit and the coin you get back when you exit.

So when you stake, you stake Gram on the TON network. The liquid staking token you receive is KTON. Keeping these distinct avoids confusion between the chain and the coin you are actually putting to work.

What is liquid staking?

On TON, the network is secured by validators who lock up Gram to participate in validation and earn rewards. Staking directly as a validator requires a large amount of Gram and ongoing operational work, and while your Gram is staked it is locked and cannot be used.

Liquid staking solves both problems. Instead of running a validator yourself, you deposit Gram into a shared pool. The pool lends that Gram to professional validator operators, who stake it with the TON Elector (the network's validator-election system) and earn validation rewards. In return for your deposit you receive KTON, a liquid token that represents your share of the pool.

Because KTON is a standard TON jetton (TEP-74), it stays in your wallet and remains yours to hold or transfer while the underlying Gram keeps earning. You get staking exposure without locking yourself out of your position.

How the KTON token works

KTON is a rate-appreciating liquid staking token. This is the single most important thing to understand about it.

Your KTON balance never changes on its own. If you hold 100 KTON, you keep 100 KTON. What changes is how much Gram each KTON is worth. Over time, one KTON redeems for an increasing amount of Gram.

• The exchange rate is simply the pool's total Gram divided by the total KTON supply.

• As the protocol earns validation rewards, that profit is added to the pool's total balance while the KTON supply stays fixed. So each KTON becomes redeemable for slightly more Gram.

• As of this writing, 1 KTON redeems for roughly 1.035 Gram, and that figure trends upward as rewards accrue.

This is different from a "rebasing" token, where your balance number goes up. With KTON, the number in your wallet stays still and the value behind each token rises. This makes KTON simpler to use in wallets, transfers, and other applications, because the balance is stable and predictable.

Concept	KTON behavior
Your balance	Fixed. 100 KTON stays 100 KTON.
Token value	Rises over time as rewards accrue.
Rewards	Auto-compounded into the exchange rate. Nothing to claim.
Redemption	Burn KTON to receive Gram at the current rate.

Auto-compounding, with nothing to do

Rewards in KTON compound automatically. At the end of each settlement cycle, the realized profit from validator lending (after fees) is folded into the pool's total balance. Because the KTON supply does not change, every holder's effective value goes up at the same moment.

You do not stake your rewards, claim them, or take any action. Holding KTON is the entire strategy.

About yield

KTON yield comes from one source: the interest validators pay on the Gram they borrow from the pool to stake. There is no fixed or guaranteed rate. Your effective annual yield depends on validator performance and pool conditions, and it is computed live from on-chain results rather than promised in advance. The rate you see in the app is already net of the protocol's governance fee, so it reflects what holders actually earn. For how rewards and fees are calculated, see How Staking Works and the fees chapter.

Staking and unstaking in brief

• Staking: You deposit Gram and receive KTON at the current rate. From that moment your KTON is appreciating.

• Unstaking: You burn KTON to redeem Gram. Redemption is processed when the current settlement cycle finalizes, not instantly. You receive a burnable payout-NFT "bill" as a receipt for your pending withdrawal.

One important rule: the withdrawal receipt NFT must not be transferred or sold. The payout is delivered to whoever holds the receipt when it settles, and its on-chain metadata literally warns against sending it anywhere. Hold it in your wallet and let it settle.

Unstaking is not instant. A full settlement cycle is approximately 36 hours (exactly two TON validation rounds), so plan your exit with that timing in mind. The full mechanics, timing, and the reasons behind them are covered in How Staking Works and the unstaking chapter.

Why KTON: the value proposition

KTON is designed to be a serious, transparent, institutional-grade home for staked Gram.

• Auto-compounding by default. Rewards fold into the token's value automatically. No claiming, no manual reinvestment, no missed compounding.

• Liquid and standard. KTON is a standard TON jetton. It lives in your normal wallet and behaves like any other token while the underlying Gram earns.

• Audited. The KTON V2 contracts were audited by TonBit (BitsLab), a security assurance provider in the TON ecosystem. The report is dated 26 May 2025 and covered 5 findings (3 Medium and 2 Informational), with 0 Critical or Major issues, all of which were fixed. See the security and audit chapter for details.

• Open and verifiable. The protocol is open-source, with on-chain state anyone can inspect. The exchange rate, total pool balance, KTON supply, and fees are all readable directly from the contracts.

• Transparent fees. KTON does charge fees, and we document them plainly. The main one is a 16% governance fee on staking rewards (not on your principal), and the displayed yield is already net of it. A few small flat fees apply to deposits and withdrawals. The fees chapter lays out each one.

• Proven operators. The team behind KTON has run public TON staking pools since 2022 (the TonStake lineage). The current KTON V2 protocol launched in 2025, with its first validation round on 26 March 2025.

Live, on-chain, and inspectable

KTON is not a black box. The public KTON pool and the KTON token are live contracts on TON, and their state is readable by anyone.

• Public KTON pool: EQA9HwEZD_tONfVz6lJS0PVKR5viEiEGyj9AuQewGQVnXPg0

• KTON jetton master: EQBuIhXNNkWf9AW9miNGNTSO_uFZ23ejfIWrieXge5f733mw (symbol KTON, 9 decimals)

For current numbers (the live exchange rate, total value staked, KTON supply, and active round), see the live on-chain state chapter, which reads these values directly from the contracts.

Next: How Staking Works