KAWA 2.0 Update: August Edition

After weeks of extensive, internal discussions, the Kawakami team is excited and proud to announce the improvements and changes being made to two major elements of this project — the xKAWA token and the KawaFarm.

We strived to put improved systems in place that will be more rewarding for our supporters and the community, while remaining fair and balanced, so without further ado let’s dive into them.

xKAWA Token

xKAWA was originally earmarked as the governance token of the Kawakami Inu ecosystem. However, the issue with governance tokens is that most investors are looking purely for profits and are less interested in helping to govern a project. Without a compelling use case or incentive to hold, governance tokens have a tendency to be freely earned by staking or farming and then immediately sold on the market.

It is for this reason that xKAWA was never intended to be just a governance token. Ever since xKAWA was conceptualized, the team have wanted to instil within it an array of exciting DeFi features. The ultimate aims of these modifications is to incentivize buying and holding, discourage sell offs, bring new investor interest and add an element of fun to the trading experience.

The key change being made is that the new and improved version of xKAWA will come with an 8% tax on buy/sell transactions.

After analyzing a number of cryptocurrencies who use a taxation system (with taxes ranging from 1% to 15% of each transaction), we found that an 8% tax offered a decent balance between the number of features able to be implemented and the investor tolerability for being taxed. It was important for the team that the majority of collected funds should be redistributed (reflected) back to the community in various ways. For this reason, on each transaction, a total of 6% is redistributed back into the hands of the community. This is accompanied by a 1% xKAWA burn and 1% allocation to the project development fund.

The community redistribution has also been divided up, with 2% going to xKAWA stakers and a further 2% to KAWA stakers. These rewards will be paid out in ETH.

Finally, we decided to implement two novel features, a Top Buyer Reward and a Weekly Jackpot, both of which will be paid out in wBTC (Wrapped BTC). In this way, Kawakami Inu will become the first token to offer both ETH and wBTC as auto distributions/reflections.

Full details of the new tokenomic elements can be found below.

With the roll-out of KAWA 2.0 Update, stakers and holders will be able to earn passive income.

Tokenomics

  • 2% KAWA Staker Redistribution — Buy/sell transactions of xKAWA are distributed to KAWA stakers in the amount of 2% of the xKAWA transaction value. The rewards are paid out in ETH.
  • 2% xKAWA Staker Redistribution — Buy/sell transactions of xKAWA are distributed to xKAWA stakers in the amount of 2% of the xKAWA transaction value. The rewards are paid out in ETH.
  • 1% Top Buyer Reward — The top buyer in the span of 4 hours gets 1% of every transaction. If they sell within those 4 hours, they lose the bonus which is then transferred to the next top buyer. This incentivizes larger buyers to hold and smaller buyers to accumulate. The rewards are paid out in wBTC (Wrapped Bitcoin).
  • 1% Jackpot — A portion of all xKAWA transaction fees are awarded to a random person who is both a KAWA staker and xKAWA staker once per week. The reward is paid out in wBTC.
  • 1% Dev Fund Tax — 1% of all xKAWA transactions is distributed to the team development fund, to be used exclusively for the growth of the project.
  • 1% Burn — A percentage of every xKAWA transaction will be burned, decreasing the supply and making the token more valuable.

KawaFarm

The KawaFarm, as well as the xKAWA token are getting a significant upgrade in August.

The 3 new Kawakami Inu pools will be added with the deployment of the Update 2.0. Staking xKAWA will work just like staking one of the original five pools, rewarding you with more xKAWA in return but also other forms of rewards beyond tax redistributions, which will be disclosed at a later time. The other 2 pools being added are Liquidity Staking pools for KAWA/ETH and xKAWA/ETH where LP token obtained from staking the pair on Uniswap will be further stakeable in KawaFarm.

New Staking Pools

  • Single-sided xKAWA staking — A new pool to stake xKAWA will be added in the 2.0 version of the farm.
  • KAWA/ETH LP staking — A new pool to stake the KAWA/ETH LP token will be added.
  • xKAWA/ETH LP staking — A new pool to stake the KAWA/ETH LP token will be added.

Withdrawal Fees

As a community-led and driven project, we put our community first which is why we are introducing withdrawal taxes with the aim of incentivizing staking, as well as rewarding stakers who share our vision and put their trust in Kawakami Inu. The following withdrawal tax functions will be introduced and distributed to stakers, with a portion of early withdrawal taxes going into the Venture Capital fund, to be used when the KawaSeed gets launched later this year:

  • 5% Early Withdrawal Tax — Early token withdrawals (fewer than 7 days from the initial token deposit) are taxed and distributed as ETH to the KawaSeed fund.
  • 2% Withdrawal Tax — Unlike the early withdrawal tax, this tax is applied whenever a stake on the farm is withdrawn, from any token pool (KAWA, ELON, SHIB, KISHU, AKITA) and redistributed as ETH to all stakers on the platform, across all pools.
  • 5% Early Withdrawal Tax LP Reward — Early token withdrawals (fewer than 7 days from the initial token deposit) are taxed and distributed as ETH exclusively to KAWA/ETH and xKAWA/ETH liquidity providers.
  • 2% Withdrawal Tax LP Reward — Unlike the early withdrawal tax, this tax is applied whenever a stake on the farm is withdrawn, from any token pool (KAWA, ELON, SHIB, KISHU, AKITA) and redistributed as ETH exclusively to KAWA/ETH and xKAWA/ETH liquidity providers.

Farming Rewards Revamp

Finally, the farming (staking) rewards (APY) formula is getting a revamp. The team has watched closely how the current APY calculations and reward rates function and has come up with a better, more balanced approach to rewards, making farming more sustainable and predictable, which is in line with our vision of making this a long-term endeavor.

The current system which has a fixed reward rate of 15% for KAWA staking and 10% for the other four token pools will be replaced by a new system where 5% of each pool’s allocation is released for farming per week, which is then distributed to stakers based on their share rate in the pool (the amount of tokens staked). This will allow us to prevent any unexpected scenarios where a pool may suddenly be depleted due to a large amount of tokens staked.

Here’s an example of how it’ll work when 2.0 gets deployed:

Token A has a pool allocation of 40 million tokens. 5% of that allocation is released per week, meaning 2 million tokens are distributed as rewards to stakers in that pool and will run for 20 weeks before it runs out of tokens. The staking period will depend on the amount of tokens that gets allocated to each pool in 2.0 and the weekly reward rate.

When?

The following details will be released in the next fortnight as we complete extensive testing of deployed contracts on the testnet:

  • APY and rewards for xKAWA staking
  • APY and rewards for KAWA/ETH staking
  • APY and rewards for xKAWA/ETH staking
  • The exact allocation for all pools in 2.0. We have monitored the utilization of the five existing pools and this is the data as of August 2, 2021:

KAWA | 374,107,719,726 | $677,134

SHIB | 7,279,170,804 | $46,004

KISHU | 13,838,627,852,044 | $14,848

AKITA | 4,141,102,057 | $6,211

ELON | 22,879,382,046 | $1,198

Based on this data, we will adjust the pool sizes to favor the more popular ones and decrease the ones that are underutilized.

In addition to these pools, we are still in talks with several other projects about partnering and adding their token to the farm. As each partnership gets closed we will be adding a new token pool with prior announcement to our community.

KAWA 2.0 gets deployed by the end of August once all checks are completed and ready for release. Until then the Kawakami team will keep you posted with regular, smaller updates on our usual channels.

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The decentralized ecosystem for meme tokens fueled by the KAWA token on the Ethereum network. Join our community: https://t.me/kawaportal

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Kawakami

Kawakami

The decentralized ecosystem for meme tokens fueled by the KAWA token on the Ethereum network. Join our community: https://t.me/kawaportal

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