Following the successful $KAWA contract migration and great progress on delivering goals set up on the project roadmap, the team is now ready to present different solutions to compensate the xKAWA holders:
Solution 1 — Relaunch xKAWA, airdrop holders
This solution entails the relaunch of the xKAWA token and airdropping all the previous xKAWA holders in a 1:1 ratio (100% of the tokens airdropped to their wallets).
- Easy to plan and execute as we have the snapshots of previous xKAWA holders.
- Can be completed in a relatively short timeframe, and faster than the other two proposals.
- Requires funds for token launch liquidity and airdrop transactions.
- xKAWA would be used exclusively as a governance (DAO) token with no significant plans to boost its price on the market.
Solution 2 — Compensate xKAWA holders with KAWA tokens
We would employ a formula to calculate the fair amount of KAWA tokens that xKAWA holders should receive. This is the initial formula the team has come up with, which will be refined in case this is the solution the community votes for:
xKAWA (prior to the staking contract exploit)
Price per coin: $0.0006
Market cap: $300,000
Total supply: 500,000,000
KAWA (prior to the staking contract exploit)
Price per coin: $0.0000018
Market cap: $1,800,000
Total supply: 999,999,999,999
Ratio of xKAWA into KAWA equals (percentage wise) 1% = 1 / 6th% (300k / 1.8mil = 0.1666) 1 / 0.1666 = 6= 1 / 6th
1% of xKAWA translates to 5 million xKAWA
5 million xKAWA would equal to 1.666 billion KAWA. (10 billion / 6 = 1.666 billion KAWA)
1 million xKAWA = 333 million KAWA (1.666 billion / 5)
- Holders get KAWA tokens which will be the main utility token for everything we do and build in the future.
- Even though the number of tokens holders would get is lower, the USD value is approximately the same as their xKAWA value at the time of the staking contract exploit.
- It would take us more time to compensate xKAWA holders in this way as it would take roughly 40 billion KAWA (4% of the total supply) to do it, and we would have to buy it off the market and airdrop to holders.
Solution 3 — Compensate xKAWA holders with ETH
A solution similar to the solution 2, this would mean we would pay back xKAWA holders in ETH instead of xKAWA or KAWA.
- Holders receive ETH and get to decide whether they buy KAWA or invest in another project.
- They receive the exact USD value of their xKAWA at the time of the staking contract exploit.
- Similar to the solution 2, it would take a bit of time to collect enough ETH to compensate every single xKAWA holder affected by the exploit.
We’ll set up a poll in our official Telegram group so that the KAWA community can vote on the solution they think is the best.
Finally, we’d like to reassure our community that the team is working hard on compensating everyone and are spending a significant portion of the team fund to buyback KAWA and other affected staked tokens.
Once the voting on the above proposal ends we will begin to work on compensating the xKAWA holders.
Thank you once again for the immense support over the past few weeks!