Governance

1. Validator participation opens — anyone meeting qualifications can validate
2. Validator ≠ GC — roles structurally separated:
   • Validator = consensus participation (network operations)
   • GC = governance decisions (policy, direction, ecosystem)
3. Auto GC registration — condition-based with challenge verification (no more individual approval process)
4. Top 50 validators participate in consensus (by total staking amount)
5. VRank — validator performance evaluation system, manages eligibility

GP-21: Tokenomics Reform

Current Block Reward Structure (being reformed)

9.6 KAIA per block (~4.87% annual inflation):

• 50% → Validators & Community
  • 20% Block Creator (Proposal Reward — being ended)
  • 80% Staking Reward
• 25% → KEF (Kaia Ecosystem Fund)
• 25% → KIF (Kaia Infrastructure Fund)

What's Changing

Proposal Reward (PR) → ENDED

• Distributed uniformly regardless of contribution
• No incentive for ecosystem growth

Contribution Reward (CR) → NEW

• Rewards based on measurable on-chain contribution (TVL, economic activity)
• Unearned CR is burned immediately → deflationary effect
• Phased roadmap: Distribution (now) → Supply review (next) → Buyback & Burn (long-term)

CR Operating Parameters (initial)

CR requires KAIA staking + optional USDT deposit for boosting rewards.

Governance Voting

• Voting on Kaia Square
• Proposals discussed on Governance Forum
• Voting rights proportional to staked KAIA with a voting cap (prevents majority suppression)

Key Facts for Developers

• Kaia is NOT yet permissionless — transitioning by Sep 2026
• Current validator count is limited (GC members only) but opening up
• Token economics are shifting from "rewards for participation" to "rewards for contribution"
• If building staking/delegation UIs: account for PublicDelegation (KIP-163), CnStakingV3
• Governance params are on-chain via KIP-81 GovParam (0x362976Cc2Ef6751DE6bf6008e3E90e1e02deCa51)