We are happy to announce that Karma Finance has joined Consensus Finance as the first token in its pre-release. This new facility is designed to gradually increase the health of the KFI market and solve problems such as distribution and liquidity, as well as provide a method for funds to reach development and marketing efforts for the project.
Here’s what it all means.
Consensus Finance is a new kind of protocol for blockchain and DeFi. It is a platform for Incentivized Token Organizations (ITOs) that run on smart contracts that anyone can easily participate in.
Consensus Finance (CoFi), developed by the founder of Karma Finance, has a number of novel features that are unique to the cryptocurrency space. Although the GUI interface for the protocol is in final development, the protocol itself is ready to be used today.
How Does Karma Finance Benefit?
One of the major problems that a new project such as Karma Finance faces is a lack of liquidity. For projects not wishing to hold ‘token sale’ events for legal purposes, starting a project can be nearly impossible.
And, as we’ve recently seen with Uniswap, low-liquidity but high-volume pools can lead to slippage and price manipulation and are targets for bots (and humans) who work to take advantage of the market.
There is a better way.
With CoFi there is no slippage, and no liquidity is needed. Price manipulation is impossible, and scams are very difficult to execute and would almost always end up benefiting participants.
Those participating in an ITO must add value first before they are able to extract value. This is a completely different mechanism than a token sale in which buyers send ETH to (often anonymous) developers who are free to do as they want the bounty they have received.
With an ITO you are getting tokens directly from a decentralized smart contract that no one controls and rewarding the party that produced them. Both subscribers and producers in an ITO are incentivized to add value to it, which helps the project to evolve into something more productive and valuable.
The more tokens a subscriber holds in relation to other subscribers, the greater their share of rewards every week.
Introducing the KFITO Token
Each project running on CoFi is an ITO with its own token. When you hold the KFITO token you receive a weekly distribution of other tokens that have been added to the ITO by producers. In this case, the KFI token.
The price of $KFITO is stable with Ethereum. 1 $KFITO = 1 ETH. There is a minimum purchase of 0.001 ETH.
How To Get $KFITO
Getting $KFITO in your wallet is easy. Just send a minimum of 0.001 ETH to the contract address (with 250,000 gas to be safe):
However, to add the tokens so you can see it to your Metamask wallet, please add the token address 0x6cD7E7DA5c03EBBd96dB0E507df76b3275b5D594 with 18 decimals.
If you send 0.001 ETH, you will get 0.001 KFITO.
Your share of the ITO is calculated from the circulating supply, not the total supply. If you have 1% of the circulating supply of KFITO then you have rights to claim 1% of the rewards at the end of the pay period.
In the first period (which ends on the 18th) we will add KFI tokens for distribution to subscribers. The more participation there is the more KFI tokens that will be added.
To Claim Your Rewards
The first pay period will end on Sunday, 18 October 2020 23:59:59 (GMT).
Subscribers and producers can claim any rewards due them by sending 0.000000001 ETH to the contract address. Any rewards due will be sent immediately (in the same transaction). This transaction represents their approval of the actions performed by others in the ITO during that period.
Please note that you must ‘sign’ for your rewards before the end of the following pay period to avoid having it forfeited for the current period. (This does not affect future periods, however.)
KFITO Can Distribute Most Other ERC20 Tokens
One of the features of CoFi is the ability to distribute nearly any ERC20 token to subscribers. If 100 $LINK are added to KFITO, for example, then subscribers will share 100 $LINK at the end of the current pay period.
By allowing all types of tokens to be distributed, we can increase the value of subscriber rewards. This makes the ITO more attractive to other participants, which increases the value of producer rewards, and so on.
Of course, we’ll be adding mostly KFITO to this ITO.
During each period, subscribers can signal that they approve of a particular token in the ITO.
Any subscriber can send any number of KFITO tokens to the token address of the token being voted on. To signal that you want more $KFI tokens, just send 0.001 or more KFITO to the KFI token address. This will increase the weight of the any producer who has added that token to the ITO. [Clear instructions on this will be made available.]
Note that voting is optional during any pay period.
Anyone Who Holds $KFI Can Be A Producer
When you add tokens to KFITO in order to claim rewards, you become a producer. Producers can get a share of the ETH reward pool at the end of every pay period.
If the current producer reward pool is, for example, 60 ETH you can send $KFI tokens to the ITO by interacting with the contract in order to claim a share of the reward. [Instructions on this producer will follow.] If you contributed 20% of the KFI tokens in the subscriber pool for that period and subscribers have voted on KFI (by sending at least 0.001 KFITO to the KFI token address), then you will be schedule to receive 12 ETH at the end of the pay period.
Importantly, this facility should help to even out the distribution of $KFI tokens across participants as larger KFI holders (such as ALPs) send a portion of their holdings to the ITO to claim ETH rewards.
No One Controls It
No one can control an ITO, not even its creator. It is a completely decentralized organization. [See line 9 in the contract that shows the owner.]
Tokens are only obtained from the contract by sending it ETH. The creator, nor anyone else, has no authority to extract any value from the ITO.
Further, the smart contract distributes rewards fairly to all participants based on the value they have added to it.
We’ll also be announcing when additonal KFI has been added, subscriber reward estimates, producer reward estimates, and other events in the forum and also our Telegram channel.