Unveiling Kinza Tokenomics

3 min readJul 11, 2023

Kinza Finance Mainnet has introduced a new generation of lending protocols. Kinza Finance is a comprehensive DeFi lending ecosystem with robust security features and innovative tokenomics. Tokenomics are the tokens, mechanisms, distribution, and allocations that power Kinza Finance, fuel protocol rewards, and ensure sustainable project development. This article expands and unveils details about Kinza Finance tokenomics, and explores Kinza ve-Real-Yield mechanisms that power the Kinza Wars.

$KZA

KZA is the Kinza Finance native token that powers the platform, and ve-Real-Yield tokenomics model. TGE (Token Generation Event) has not yet occurred. Be wary of scams and any claims about acquiring KZA — all updates about KZA availability will come from official Kinza channels.

Token Distribution

KZA tokenomics have been developed to ensure a stable, thriving, and sustainable ecosystem. The majority allocation of KZA has been reserved for community emissions to power ve-Real-Yield tokenomics and fuel the Kinza Wars.

Vesting

The Vesting schedule further demonstrates the Kinza Finance commitment to sustainable growth and community. Vesting will occur over a four year period. Team, Investor, and Advisor vesting terms have a one year cliff, followed by a three year vesting period. Community and Reserve allocations are scheduled for a four year vesting period. This ensures community growth and project momentum will flourish.

Airdrop

5M KZA (5% of total supply) will be allocated for distribution as airdrop. This allocation will be distributed to users who provide liquidity on the Kinza platform during softlaunch period, before TGE as a retroactive reward. Start experimenting and interacting with the dApp via app.kinza.finance today, and increase your chances of becoming the first to receive a KZA allocation. The airdrop will occur following the KZA TGE. TGE date has not been unveiled, and more details on the KZA airdrop are coming via official Kinza channels. Until that time, do not trust any claims about a KZA token sale, or airdrop.

Ve-Real-Yield

Real yield in the form of KZA is available as borrower rewards in select lending pools each week. Furthermore, a portion of KZA emissions will go to lenders each epoch. Owners of KZA can stake KZA 1:1 for xKZA, which is used to vote for directing KZA emissions each week. Bribes can be sent to xKZA holders to further encourage voting for specific lending pools. The battle for directing KZA to lending pools each week is known as the Kinza Wars.

Emission Flow

Let’s walk through the ve-Real-Yield emission flow. First, let’s first imagine the KZA pool that will be released as emissions into lending pools in the upcoming epoch. While more details on the KZA emissions schedule are coming, let’s assume the first epoch consists of 500,000 KZA up for grabs as borrower rewards.

Where are those KZA going? This is where KZA holders step in. Holders stake KZA 1:1 for xKZA. The fate of those 500,000 KZA holders is now in the hands of those xKZA holders — but not so fast. Outsiders can influence the direction of emissions through bribes. Bribers can use KZA to bribe xKZA holders and incentivize votes for lending markets that benefit them. By the end of the current epoch, the votes are in.

The following epoch, borrowers in the select lending markets voted upon the week prior, earn a weighted portion of the 500,000 KZA emitted that week that become available to claim at the end of the epoch. Meanwhile, the Kinza Wars continue to push forward, with votes and bribes deciding the fate of the next wave of KZA emissions for the upcoming epoch.