Kyokoans, today we want to raise a concern and open a community vote for a unique situation.
We originally allocated 350,000 $KYOKO tokens as rewards for the CCAL testnet event. From this pool, all participants that complete the lender+borrower process were to equally share the remaining tokens after bug bounty rewards had been subtracted from the pool.
After subtracting for bug bounties and accounting for our 16,421 users that completed eligible test transactions, we discovered that testnet users would only receive between 15-40 $KYOKO tokens under our original rewards structure. This is far below what we’d anticipated.
Unfortunately, we are also aware that this is crypto and there are likely thousands of bots that were programmed to participate in the testnet event. Under the original rewards structure, the bot programmer would receive testnet rewards across all bot test wallets, transfer the rewards to a primary wallet, and flood UNISWAP with $KYOKO tokens. While this is harmful to Kyoko, it’s most unfair to our community of amazing Kyokoans who put in the hard work to test our cross-chain asset lending platform and deserve to be rewarded for their effort and loyalty.
Read more in our extended article, here: Community Vote: CCAL Testnet Rewards Distribution.
At this point, we have little ability to identify which of these test transactions were conducted by bots. Therefore, we want to raise a community vote to identify the best path forward:
Option 1: According to the original rewards structure, distribute 350k $KYOKO to all 16,421 users, each with a reward range of 15-40 $KYOKO.
Option 2: Publish the list of eligible testnet wallets and give the community a 1-month period to identify and report suspected bot wallets and sybil attacks. Scam wallets would be verified by the team and removed from the distribution whitelist before sending rewards – therefore increasing the amount of tokens that remaining wallets would receive.
Kyokoans, this is a major decision that directly affects you. It wouldn’t be fair for us to make this decision on your behalf – so we decided it most appropriate to let you decide your preferred path forward. Simply put, we want to put this decision to vote by the people that it directly affects.
Therefore, we will host a formal vote on Snapshot that will last for 7 days and only be conclusive once the equivalent of 600,000 votes has been reached. As always, the vote will be open to those that have a stake in Kyoko, including $KYOKO token holders and stakers, Kyoko LP liquidity providers, and Kyoko Pawn holders.
We opened this forum thread to give the community a chance to discuss within itself. We know this is a difficult decision, Kyokoans. We’ll also be actively reviewing this forum and the official Kyoko Discord for any questions that you may have for the Kyoko team.
Vote here: Snapshot
We will respect the voice of the community and approve the majority vote.