# Tokenomics

## Token Distribution

![](https://755734743-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXnek40U0o57ngOE8WX1D%2Fuploads%2FMMnAfhnj9OAE6urOMGDc%2Fimage%20\(6\).png?alt=media\&token=8eb696db-cd6f-4661-819c-5003848b1117)

* **Community Rewards (50%)**
  * Allocation: 5,000,000,000 KNS (5 billion KNS)
    * KNS governance staking reward 2,000,000,000 KNS (2 billion KNS)
    * KAIA-KNS LP staking reward 3,000,000,000 KNS (3 billion KNS)
  * Distributed over 48 months for liquidity pool and staking rewards
* **Treasury (15.75%)**
  * Allocation: 1,575,000,000 KNS (1.575 billion KNS)
  * Managed by DAO after the launching of the governance function 
* **Initial LP (0.75%)**
  * Allocation: 75,000,000 KNS (75 million KNS)
  * Used for providing liquidity the initial KAIA-KNS pool
* **Marketing & Partnership (5%)**
  * Allocation: 500,000,000 KNS (500 million KNS)
  * Used for marketing or cooperation with other projects
* **Airdrop (0.5%)**
  * Allocation: 50,000,000 KNS (50 million KNS)
  * Airdropped to the winners of KNS Domain Auction from March 28 to April 10, 2022
* **Team (15%)**
  * Allocation: 1,500,000,000 KNS (1.5 billion KNS)
  * Distributed to the KNS Dev Team
  * 30 months of linear distribution after 6 months of lock-up (Total 36 months)
* **Investors (13%)**
  * Allocation: 1,300,000,000 KNS (1.3 billion KNS)
  * Distributed to institutional investors of KNS 
  * 30 months of linear distribution after 6 months of lock-up (Total 36 months)

## Revenue Distribution

10% of domain sales revenue will be distributed to KNS Dev Team, 40% to the Treasury, and 50% to GradualDistributor.

![KNS Cash Flow Chart (before Kaia migration)](https://755734743-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FXnek40U0o57ngOE8WX1D%2Fuploads%2Fgit-blob-7676487ff6ab37dc891ce804bd5177c2dcca680f%2FKNS_cash_flow.png?alt=media)

The details on the revenue distribution are as follows:

1. After domain registration, the revenue (KAIA) for KaiaRegistrarController is moved to PrimaryDistributor.
2. PrimaryDistributor distributes 10% to the team wallet, 40% to Treasury, and 50% to GradualDistributor.
3. GradualDistributor gradually sends distributed KAIA to SecondaryDistributor during the registration period of each domain.
4. SecondaryDistributor purchases KNS using 50% of the KAIA it received and distributes it to sKNS holders, and with the remaining 50%, it purchases KNS and provides liquidity to the KAIA-KNS pool. The LP tokens are managed by Treasury and become POL(Protocol Owned Liquidity).