KART is the native token of the Kartera Protocol. The Kartera Protocol allows anyone to exchange their tokens with Kartera basket tokens allowing them to diversify their portfolio. This is done with no transaction cost that are a load on diversified portfolios.
The innovation of Kartera Protocol is not just in diversification it offers but also how the liquidity of the basket is used to generate returns. These returns are projected to be multiple times the returns from the performance of the basket portfolio. The Kartera Protocol act as an Automated Market Maker (AMM) for anyone who wants to swap between any two basket constituents. A small fee is charged for each trade and distributed to liquidity providers and KART token holders.
Kartera Governance Token — Role, Value and Distribution
The Kartera Diversified Basket and Swap Protocol is governed by KART token. This article describes its role, value and how it is distributed.
Role in Kartera Protocol
- Governance of the protocol, making proposal, voting on proposals.
- Mode of payment (Toll) to withdraw from the basket. Anyone who want to deposit their basket tokens in exchange for constituents are required to pay KART tokens as fee.
- Initially the fee is set at 1KART/$100 notional withdrawal.
- 0.05% of all swap trade size will be distributed to KART holders.
- KART is the currency to pay for fees to withdraw constituents from basket. This creates demand for KART tokens.
- Every block KART token are minted and distributed to holder of basket tokens.
- 50 million tokens will be minted in the 50,000 block starting at block #12173285. Tokens locked in the Swap Farm.
- This is to offer incentives early adopter of the protocol
- After block #12223285 tokens will be minted at 100 /per block
- Community can decide to lower mint rate further
- 10 million tokens minted to be used in part towards marketing incentives and make markets on exchanges.
- 100 million tokens minted and put in a 3 year time lock towards Creator and Developer fund.