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KUN token
KUN plays the role of governance voting in the QIAN V1 protocol. KUN continues to have governance authority and also assumes the role of regulating the algorithm in the QIAN V2 protocol.
Through the voting function of KUN, QIAN community can decide the increase or decrease of collateral types, adjust the seigniorage/redemption fee, and adjust the refresh interval and refresh rate of the collateral ratio. The operation logic of the algorithm stablecoin is different from the DAO organization mode of QIAN V1, and the system will operate as automatically as possible to provide highly consistent expectations for all participants.
The price of KUN will fluctuate according to demand and market factors, and the total amount will remain unchanged at 12 million KUN. After some KUN has been issued through QIAN V1 liquidity mining, the remaining KUN will participate in the algorithm cycle through the QIAN V2 algorithm adjustment. If the QSD algorithm adjustment ratio increases, the market demand for KUN will increase, and the circulation of KUN will decrease. Through this design, it can be ensured that the increase in the intrinsic value of KUN is positively correlated with the increase in QSD demand.
The market value of KUN tokens in QIAN V2 can be approximately calculated as the value of tokens burned in order to mint QSD and maintain circulation, the cash flow generated by the seignorage and redemption fees, and the added value of the collateral generate net value. As the market value of KUN increases, so does the system's ability to keep QSD stable. Therefore, the priority in the QIAN V2 design is to accumulate the maximum value for KUN tokens while maintaining the QSD token price's stability.