Tokenomic Adjustment Proposal April 11th 2025 
To pave the way for KILT&rsquo;s ambitious multi-chain future, we propose to rectify certain technical and tokenomic defects in the current Polkadot-Ethereum-BASE bridging chain. This will involve upgrading the current KILT token contract on BASE.
Additional context, calculations etc. can be found at <a href="https://kilt.polkassembly.network/post/238">https://kilt.polkassembly.network/post/238</a> but the present proposal should be taken to supersede it in all respects.
This referendum considers and encompasses all of the following matters and, if passed, offers a mandate to the KILT Foundation to take reasonable and responsible steps to execute them, through both further on-chain proposals and off-chain actions. 
Tokenomic Adjustment
<ul>
<li>The current KILT BASE contract will be upgraded to a new contract on BASE.</li>
<li>Simultaneously, the remaining unminted supply (126,560,000) will be distributed to current holders.</li>
<li>The effect will be a token migration at a ratio of 1:1.75. For example, 1000 KILT on the old contract will become 1750 KILT on the new contract.</li>
<li>This leaves 3,560,000 tokens unaccounted for; these will be donated to the Treasury for the continued benefit of the project.</li>
<li>The maximum supply post-migration will be unchanged at 290,560,000 of which 100% will be minted. </li>
</ul>
Governance, Utility and the Parachain
<ul>
<li>Collator arrangements will be simplified to 5 participants, by way of a permissioned list.</li>
<li>All forms of locked/reserved tokens (DID, governance, etc.) will be unlocked in good time before the closing of the migration window.</li>
<li>The new token will be bridged back to Polkadot, allowing for its use as gas on the KILT parachain, and in governance functions.</li>
<li>EVM functionality is in active development. </li>
</ul>
Practicalities
<ul>
<li>Self-custody users will migrate their tokens via a dedicated migration portal.</li>
<li>KILT held on CEX will be migrated on the users&rsquo; behalf at a given moment, announced in advance.</li>
<li>The exact date of the migration window opening will be given at least seven days in advance.</li>
<li>The migration window will then remain open for at least 10 weeks.</li>
<li>The migration window may be extended, but not shortened, at the discretion of the KILT Foundation.</li>
<li>Upon final closure of the window, unmigrated tokens (if any) will be redirected to the Treasury for the continued benefit of the project. </li>
</ul>
Legal Note
This proposal is presented to the KILT community for consideration and is subject to governance approval through a formal voting process. While the KILT Foundation is committed to implementing the will of the community to the best of its ability, it reserves the right to modify, delay, or deviate from the proposed actions if required by applicable law or based on legal advice received during or after the referendum process.
This document does not constitute legal, financial, trading or investment advice, and no guarantees are made regarding the outcomes of the proposed changes. The proposed token migration is intended solely for existing KILT token holders and should not be construed as a new token issuance, public offering, or sale.
Participation in the migration may be subject to geographic restrictions (geoblocking) based on applicable regulations and legal guidance. Participants should carry out their own due diligence and consult with appropriate advisors before making any decisions or taking any action based on this proposal.
KILT Foundation
Genesis Building, 5th Floor, Genesis Close, PO Box 446, Cayman Islands, KY1-1106
Certificate No. 418097 Directors: Rishant Kumar, Svetoslav Boyadzhiev
Contact: <a href="mailto:hello@kilt.io">hello@kilt.io</a>

**Tokenomic Adjustment Proposal  
**April 11th 2025

To pave the way for KILT’s ambitious multi-chain future, we propose to rectify certain technical and tokenomic defects in the current Polkadot-Ethereum-BASE bridging chain. This will involve upgrading the current KILT token contract on BASE.

Additional context, calculations etc. can be found at [https://kilt.polkassembly.network/post/238](https://kilt.polkassembly.network/post/238) but the present proposal should be taken to supersede it in all respects.

This referendum considers and encompasses all of the following matters and, if passed, offers a mandate to the KILT Foundation to take reasonable and responsible steps to execute them, through both further on-chain proposals and off-chain actions.  
  

**Tokenomic Adjustment**

*   The current KILT BASE contract will be upgraded to a new contract on BASE.
*   Simultaneously, the remaining unminted supply (126,560,000) will be distributed to current holders.
*   The effect will be a token migration at a ratio of 1:1.75. For example, 1000 KILT on the old contract will become 1750 KILT on the new contract.
*   This leaves 3,560,000 tokens unaccounted for; these will be donated to the Treasury for the continued benefit of the project.
*   The maximum supply post-migration will be unchanged at 290,560,000 of which 100% will be minted.  
      
    

**Governance, Utility and the Parachain**

*   Collator arrangements will be simplified to 5 participants, by way of a permissioned list.
*   All forms of locked/reserved tokens (DID, governance, etc.) will be unlocked in good time before the closing of the migration window.
*   The new token will be bridged back to Polkadot, allowing for its use as gas on the KILT parachain, and in governance functions.
*   EVM functionality is in active development.  
      
    

**Practicalities**

*   Self-custody users will migrate their tokens via a dedicated migration portal.
*   KILT held on CEX will be migrated on the users’ behalf at a given moment, announced in advance.
*   The exact date of the migration window opening will be given at least seven days in advance.
*   The migration window will then remain open for at least 10 weeks.
*   The migration window may be extended, but not shortened, at the discretion of the KILT Foundation.
*   Upon final closure of the window, unmigrated tokens (if any) will be redirected to the Treasury for the continued benefit of the project.  
      
    

**Legal Note**

_This proposal is presented to the KILT community for consideration and is subject to governance approval through a formal voting process. While the KILT Foundation is committed to implementing the will of the community to the best of its ability, it reserves the right to modify, delay, or deviate from the proposed actions if required by applicable law or based on legal advice received during or after the referendum process._

_This document does not constitute legal, financial, trading or investment advice, and no guarantees are made regarding the outcomes of the proposed changes. The proposed token migration is intended solely for existing KILT token holders and should not be construed as a new token issuance, public offering, or sale._

_Participation in the migration may be subject to geographic restrictions (geoblocking) based on applicable regulations and legal guidance. Participants should carry out their own due diligence and consult with appropriate advisors before making any decisions or taking any action based on this proposal._

_KILT Foundation_

_Genesis Building, 5th Floor, Genesis Close, PO Box 446, Cayman Islands, KY1-1106_

_Certificate No. 418097 Directors: Rishant Kumar, Svetoslav Boyadzhiev_

_Contact: [hello@kilt.io](mailto:hello@kilt.io)_

- **Problem Statement:** Addressing technical and tokenomic issues in the current Polkadot-Ethereum-BASE bridging chain for KILT token holders.
- **Significance:** Enhancing tokenomics, governance, and utility for KILT holders and the project's future.
- **Proposed Solution:** Upgrade the KILT BASE contract, distribute remaining tokens to holders at a ratio of 1:1.75, donate excess tokens to the Treasury, simplify collator arrangements, unlock reserved tokens, bridge the new token back to Polkadot, and facilitate migration for users.
- **Expected Outcomes:** Improved tokenomics, governance, and utility, with a clear migration process and continued project benefit.

#50 Tokenomic Adjustment Proposal

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