Adjustment to $KARATE Token Emission Rate [Proposal]

General
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EXECUTIVE SUMMARY

In light of recent adjustments in token emission schedules by blockchain projects such as Heroes of Mavia, which significantly decreased their inflation rates, this proposal suggests considering a similar strategy for Karate Combat to protect and enhance the value and stability of the $KARATE token.

BACKGROUND

Karate Combat has made significant strides in integrating blockchain into sports entertainment, empowering fans with a say in league decisions through $KARATE tokens. The Up Only Gaming initiative and governance participation are testaments to this innovative approach.

However, there’s an opportunity to further refine our economic model to ensure the longevity and stability of the ecosystem. The reduced token emission proposal is crafted with this foresight.

Long-term Value Preservation: By reducing the token emission rate, we can diminish the risk of inflationary pressure on $KARATE. This measure will preserve the token’s value and maintain its attractiveness as an asset, ultimately benefiting all stakeholders in the ecosystem.

Aligning with Market Dynamics: In response to the shifting landscapes of cryptocurrency and fan engagement, reducing emissions aligns Karate Combat with successful economic strategies seen in other leading blockchain projects. A more conservative emission schedule signals to current and potential token holders that Karate Combat is committed to responsible and responsive financial management and long term growth.

Enhancing Investor Confidence: A commitment to lower emissions instills confidence among investors and token holders, suggesting a disciplined approach to tokenomics that prioritizes long-term health over short-term gains. This can attract more serious and stability-focused participants to our community.

PROPOSAL

This proposal aims to reduce the emission rate of $KARATE tokens, in order to prevent inflation-induced dilution and encourage a more sustainable ecosystem development.

Similar to the $KARATE Staking proposal, I propose forming a working group of KC team members and outside experts from within the crypto ecosystem to first propose and then hopefully develop $KARATE emission adjustments.

A possible outcome could be:

  1. Founders Allocations : Reduce the upcoming token unlocks by 80%, with vesting to resume as normal in February 2025. This accounts for a significant portion of the total token allocation.
  2. Funding Round Allocations : Similar to the founders, I suggest reducing the next unlocks by 80%, with the vesting schedule to continue as per the original plan starting February 2025. This aims to align the interests of our early investors with the long-term health of the token economy.
  3. Treasury : To maintain a stable supply and promote confidence, I propose that the treasury allocation unlocks are reduced by 50% over the next unlock events. The normal vesting would resume in February 2025, providing a more gradual increase in circulating supply.
  4. KC Contributors : The contributors’ vested interest in the ecosystem’s success is vital. I propose an 80% reduction in the next token unlocks for contributors, with normal vesting resuming in February 2025, to reward their long-term commitment and contribution.

Instead of resuming the normal unlocks as per the original plan by 2025, a prolonged emission schedule beyond 2026 may be even more beneficial for the Karate Combat ecosystem. A sustainable emission rate makes the $KARATE token a more attractive asset for new investors who are critical to the expansion and diversification of our community.

This proposal is just one potential avenue for enhancing the value and utility of the $KARATE token. The working group will explore various options and present the most viable solutions to the community.

INTENT

The purpose of this proposal is to mitigate excessive inflation and preserve the long-term value of $KARATE for token holders. It is about finding a healthy balance between rewarding early supporters and ensuring the stability and attractiveness of the token for future investors. By slowing down the rate of new tokens entering circulation, we mitigate sell pressure and potential devaluation, thereby preserving the value of $KARATE.

DISCUSSION

I encourage $KARATE token holders to discuss this proposal. Should Karate Combat form a working group to adjust the $KARATE emission rate?

17 Likes
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KC, this would be huge! Hope this is a serious consideration for KC as this amendment would lite the rocket!!! Let’s get it!!!

5 Likes
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I support and also suggest the following:

  1. The yield earnings from betting could also be locked for a period of time. This would limit the sell pressure after every monthly event.

  2. STAKING: Incentivise by Increasing the yield by a fact e.g additional 20% boast for any wallet that will have betting tokens staked.

For suggestion 1:
I would suggest a cliff of 6 months, then a linear distribution of 8.3% over 12months period. This will encourage long term involvements of all, and decouple KC from BTC cycles i.e. make it a continuous business and fun for all.

Overall:
Impact: from the implementation date it would zerorise sell pressure for 6months, then when distribution resumes, the volumes would be limited.

4 Likes
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This is the best karate combat proposal to date, it will serve everyone involved well. I am 100% in support

7 Likes
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I have read the proposal and fully support it; with this model, there is a possibility of interest in listing the token from exchanges such as Binance or Coinbase

4 Likes
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I support this. The huge amount of supply to be released will likely be damaging to the token price, and not beneficial tk early token holder supporters.

3 Likes
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I support also this. Better to have good grounds :laughing: for the future of this marvellous project

4 Likes
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This proposal would be great and will encourage a lot more people to buy the project, I think this is the best and most important proposal that has been made so far.
Well done!

3 Likes
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Fantastic news. This initiative will tale KARATE to new heights! I fully support this initiative.

3 Likes
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This would be huge for the sustainability of Karate Combat

3 Likes
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Do we need a certain amount of people to be in agreement with this in order for it to turn into an official poll?

It sounds like a great idea and I am very interested to see how many people think so as well. KC is a great project and we have been discussing things like this, staking mechanisms, and other ways to help retain and grow the value of $karate.

I believe we are on the right track guys!

2 Likes
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Thank you for the feedback! The sentiment so far seems very positive for this. I will try my best to push this forward. According to the DAO guidelines an offical voting may start after 3 days of gathering (enough) feedback.

1 Like
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I would like to see onlyLARPing and a few others from our discord chime in with their thoughts prior to this turning into an official poll. Lots of good ideas being discussed here.

2 Likes
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I like this solution.

But we need to move fast as we have less than two weeks to discuss and implement it if holders agree.

I think an 80% reduction would better match Karate Combat’s current rate of growth.

This proposal has an added benefit. Consider that the community is still adjusting rules, and adding in events such as the pit submission series.

By lengthening the distribution time, rather than unlocking all at once, this grants this league and it’s rulesets more time to mature.

3 Likes
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it’s always good to hear the feedback.

i’m not saying it’s off the table, but on the flip side it’s not something that governance - or anyone else - can impose on the holders of locked up $karate. it would need to be consensual.

i myself see both sides. the points above are well noted, but on the flip side, if someone asked me if i preferred for 10% of $karate to be unlocked or 100% i’d choose 100% everytime.

gun to my head - i think that adjusting the release schedule kicks the can down the road on a perceived problem that i personally don’t even think exists in reality. in other words i dont think the release schedule is a real problem for karate combat. perhaps market fears about it are, but in that case i think i’d rather get it over with.

hope that maeks sense.

4 Likes
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Personally I agree with Onlylarping, given that the holders are all founders and sophisticated investors and not the kind of people to just dump it all at the first given opportunity, these people are educated long term holders. Plus once its happened the worry will be over and we will see it likely will not have any affect, in fact the worry is probably having more affect now from retail investors in anticipation (sell the news). Kicking it down the road is just a short term fix and people will just keep worrying about it for longer, just get it out the way with and let people see the founders and initial investors arent just dumping and all that worry will be forgotten moving forwards.

3 Likes
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While the initial proposal has its merits, I agree with @onlylarping in that I’d prefer to see the majority of the supply in circulation sooner rather than later so that any concerns of max dilution can be dealt with in the near term, before peak adoption of the network takes place. The worst case scenario would be an extended period of lower prices and consolidation, which would only benefit those who are in early and wish to accumulate more ahead of the aforementioned peak adoption (particularly as we head into the stronger half of the crypto market cycle).

While concerns over dumping are always understandable, I also agree with @AnimalOnAcid in that these founders and investors aren’t a part of some superfluous meme coin that have no incentive to hold when their tokens unlock or when the network hits a certain level of growth. The long term benefits of holding a stake in a blockchain based, user centric combat sports league like Karate Combat vastly outweighs the short term gain to be had from selling the tokens.

With the current vesting schedule, the entire supply will be in circulation approximately two years from now, with the largest single increase being the initial unlock on May 12th. If I were someone looking to acquire more KARATE (which I am, as it were), I’d be looking to DCA into it between now and then to take advantage of any minor dips that may come with future unlocks.

The way I see it, in two years time the league will have exploded (more than it already has) in views and token holders, and with the current vesting schedule, the early adopters have the best chances to acquire at the lowest valuations.

Regardless, an interesting proposal and discussion. This right here, the ability for the fans/participants to hold such forms of open discourse amongst themselves and the founders, is what makes Karate Combat so novel and powerful.

Cheers mates.

2 Likes
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I don’t think I could have said it better myself!

Initially due to my own ignorance as to how these things work, I thought the idea was a good one. Now that I’ve had a chance to look things over a little more and get input from you guys, I too agree with onlyLARPing, animalonacid, and you.

I also believe that the founders and investors for this project intend to see it through and help it retain and grow in value over the next couple years (at least). I have personally been involved in a rug pull project before, because as I said I am a novice crypto investor. I did however learn my lesson and increase my knowledge in the area of ico’s and newer crypto tokens. Karate combat is nowhere close to one of these types of ripoff projects.

I personally see a bright future for all of us that hang in there and trust the core team that is building this. They have as much or more to gain by seeing this through properly than any of us do. The crypto market is always volatile and experiencing some pretty big pullbacks right now, so I understand everybody getting a little anxious about the unlock schedule. I’m going to trust that the team and the founders are in it to win it, so I’m jumping on board with them.

One of the great things about this community project is that the guys in control are actually willing to listen to our ideas and help us understand why it would or would not be helpful.

I love KC guys! Let’s do this!

2 Likes
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Civil discourse is how progress is made mate, and it has worked beautifully here. Rug pulls abound, but much of that risk can be mitigated with thorough research, and ensuring the project has true utility and a proper plan in place to execute. The future is bright for Karate Combat, and the league has hardly even begun to grow.

1 Like
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You articulated that beautifully brother!

I too feel like karate combat is really just getting going and we have a bright future ahead of us.

1 Like