$KERNEL Tokenomics

Overview

$KERNEL is the unified governance token across Kernel's ecosystem of products, including Kelp LRT, Kernel Restaking Infrastructure, and Gain. The token is designed with a community-first approach, emphasizing user empowerment and long-term protocol sustainability.

Token Distribution

Total token distribution is structured to prioritise community involvement and sustainable growth:

Distribution Breakdown

• Community Rewards & Airdrops (55%)

  • Airdrops: 20% of total supply

  • Future Rewards: 35% of total supply

• Private Sale (20%)

  • Includes completed and future private sale allocations

  • Subject to 24-month vesting after 6-month lock-up post TGE

• Team & Advisors (20%)

  • Subject to 24-month vesting after 6-month lock-up post TGE

• Ecosystem & Partners (5%)

  • Allocated for ecosystem partners, market makers, and onchain liquidity

Token Utility

Launch Utilities

1. Governance Rights

   • Participate in key decisions across all three products

   • Vote on protocol parameters and upgrades

2. Restaking Capabilities

   • Provide shared economic security for ecosystem projects

   • Support middleware and applications within the ecosystem

3. Liquidity Provision

   • Earn additional rewards by providing liquidity on AMMs

   • Access to liquidity mining programs

4. Ecosystem Participation

   • Eligibility for potential airdrops from ecosystem projects

   • Access to restaking rewards from middleware and DeFi protocols

Future Utilities (Subject to Governance Approval)

• Insurance provision against slashing events for rsETH and Kernel

• Participation in protocol revenue through $KERNEL buybacks

Airdrop Schedule

Season 1

• Allocation: 10% of total supply

• Timeline: Through December 31, 2024

• Eligibility: Users with Kelp Miles or Kernel Points across all three products

• Loyalty Boost: 15% boost for Season 2 if restaked before January 15, 2025

Season 2

• Allocation: 5% of total supply

• Timeline: January 1 - April 30, 2025

• Loyalty Boost: 15% additional rewards for early restakers (before January 15, 2025)

Season 3 and Beyond (Subject to governance approval)

• Allocation: 5% of total supply

• Timeline: To be determined through governance

Token Generation Event (TGE)

• Target Date: Early Q1 2025

• Listing: Multiple CEX listings planned (specific dates TBA)

Ecosystem Context

$KERNEL governs an ecosystem with significant TVL across three main products:

• Kelp LRT: $2B+ TVL with 500k+ ETH restaked

• Kernel (Restaking infra for BnB, BTC, and other reward-bearing tokens): Powering 25+ ecosystem projects including LRTs, Middleware, and Dapps

• Gain: $200M+ TVL in automated vaults

Early Supporter Benefits

Additionally, early users and supporters have received the following benefits:

• 25% boosted rewards for early restakers on Kernel (Dec 12 - Jan 1, 2024)

• 100k Kelp miles/rsETH minted rewards (Jan 18 - Feb 9, 2024)

• Additional incentives through various campaigns (RTOB, Kelp Carnival)