Tokenomics

5.1 Overview

The $KINU token is the economic backbone of the Karate Inu ecosystem. It is not just a reward token — it is a proof-of-contribution asset that links intelligence, participation, and value. The design of $KINU is centered on three core principles:

  1. Incentivize high-quality participation

  2. Ensure sustainable token flow

  3. Empower long-term contributors through utility and governance

5.2 Supply & Emission Policy

  • Total Supply: 10,000,000,000 KINU

  • Initial Circulating Supply (at TGE): ~2,000,000,000 KINU (~20%)

  • Deflationary Pressure: Future burn mechanics tied to AI PASS consumption and DAO votes

  • No inflation beyond total supply

Token release follows a strict vesting schedule to ensure fairness, prevent early dumps, and align the team and investors with long-term vision.

5.3 Utility-Driven Ecosystem Flow

$KINU flows across multiple layers of the platform:

🔄 Contribution & Reward Loop

  • Users complete AI missions → earn $KINU

  • Contributors receive higher rewards based on insight quality

  • Weekly top submissions unlock bonus KINU

🧠 Access & Functionality

  • Spend $KINU to acquire AI PASS (required for premium missions)

  • Use KINU Points (earned via activity) in the Mini-App economy

  • Access to exclusive analytics, leaderboards, and DAO governance

📈 Supply Sink Mechanisms (Planned)

  • Burn % of KINU used for mission resets or premium analysis tools

  • Stake-to-unlock modules for high-level contributors

  • Seasonal limited quests with one-time token entry

5.4 Demand Catalysts

To support long-term demand for $KINU, the project is structured around growing real usage instead of speculative cycles:

Catalyst
Description

AI Agent Growth

As more users interact with the AI, more $KINU is required for premium access

Referral & PASS System

AI Participation Passes are in limited supply and must be earned or bought with KINU

Leaderboard Prestige

Contributor ranks tied to performance history, with KINU-based milestone unlocks

Cross-platform Expansion

Use of $KINU in future AI-integrated services beyond Telegram (Discord, Web, etc.)

5.5 Liquidity & Exchange Strategy

To ensure sufficient liquidity while minimizing volatility:

  • Initial Liquidity Provision: 10% of total supply will be allocated

  • Listing Strategy: Focus on CEX/DEX hybrid support starting with BSC-native DEX (PancakeSwap)

  • Market Making: Strategic MM partners will be onboarded post-launch

  • Anti-Dump Mechanics: Team and partner tokens fully vested or linearly released, minimizing early sell pressure

5.6 Ecosystem Growth Strategy

The 20% allocation to Ecosystem Growth & AI Ops will support:

  • Expanding AI mission types and domain knowledge

  • Funding for community-driven bounties, translation, and growth loops

  • Hosting hackathons, co-op campaigns, and education rewards

  • Research grants to external contributors improving the AI model or token use

5.7 Long-Term Sustainability

The token model is designed not only for activity-based incentives but also for collaborative learning economics — where users shape both value and knowledge.

Karate Inu will continuously adapt token mechanics through DAO input, usage analytics, and external integration opportunities, ensuring that $KINU remains useful, meaningful, and desirable.

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