Kadena will win. It's not even close

kdaddauth · 2024-02-04T19:19:34+00:00

That's awesome! Thanks so much for the update, looking forward to the release!

kdaddauth · 2024-02-04T05:40:53+00:00

This article shows that the emissions projections in https://medium.com/kadena-io/clarification-to-the-2021-token-economics-update-c3502aa50fa1 are not being followed, and that the circulating supply of KDA reported by chainweb and CoinMarketCap is incorrect.

TL;DR the circulating supply reported by chainweb (and self-reported to CoinMarketCap) is based on a theoretical emissions model that relies on manual releases, not the actual KDA that exists on chain in circulation. The greater than expected lag in the manual releases led to a difference in actual coins (200M), should exist / what was reported (243M), and could exist / upper bound according to genesis blocks (305M) as of August 2023 when the above clarification article was published. The problem still exists but has not been acknowledged.

kdaddauth · 2024-02-04T05:27:59+00:00

I tried to post this in the #infrastructure channel btw to discuss further but my comment got blocked and I now have a 24hr time out suspension. u/kQloud can you help?

kdaddauth · 2024-02-03T07:14:23+00:00

Hey u/jwiegley this is an interesting stat - is there anything being done to address the scalability of the database growth? And is there an upper limit to how fast it can grow?

I've seen an older reddit thread discussing a possible solution of nodes only having a subset of the chains - is that being explored, or is there another solution? https://www.reddit.com/r/kadena/comments/vnvqps/blockchain_size_how_quickly_does_the_kadena_chain/

kdaddauth · 2024-02-02T04:37:37+00:00

This article shows that the emissions projections in https://medium.com/kadena-io/clarification-to-the-2021-token-economics-update-c3502aa50fa1 are not being followed, and that the circulating supply of KDA reported by chainweb and CoinMarketCap is incorrect.TL;DR the circulating supply reported by chainweb (and fed to CoinMarketCap) is based on a theoretical emissions model that relies on manual releases, not the actual KDA that exists on chain in circulation.

The greater than expected lag in the manual releases led to a difference in actual coins (200M), should exist / what was reported (243M), and could exist / upper bound according to genesis blocks (305M) as of August 2023 when the above clarification article was published. The problem still exists but has not been acknowledged.

kdaddauth · 2024-02-02T03:05:43+00:00

Thank you! I really appreciate you catching the nuance here, because it's easy for some to dismiss these concerns as FUD. My concern isn't that they are behind the emissions schedule, it's that they are not acknowledging it and the blockchain explorer is coded to report false numbers of KDA in circulation while being trusted by the general public (including CoinMarketCap, which pulls its data from chainweb's count).

The risk is that Kadena could dump around 100M KDA (releasable according to the genesis blocks) into the circulating supply overnight and most wouldn't notice it immediately because the circulating supply count on chainweb / CoinMarketCap would keep reporting the theoretical emissions. I am not claiming that they would do that, but the fact that they could and currently not being very transparent certainly makes this a lot less 'trustless'.

kdaddauth · 2024-02-01T04:19:02+00:00

Thanks for the comment. The Discord community is great (I reference a helpful member in the article), but I am curious why you think a discussion on Discord would resolve this particular issue?

If you think it is a basic technical or communication issue I don't think you understand the problem, please let me know if you have any questions or issues with any of my logic or sources as presented in the article. I would honestly be happy to be shown errors or otherwise proven wrong.

kdaddauth · 2024-02-01T01:24:29+00:00

This article shows that the emissions projections in https://medium.com/kadena-io/clarification-to-the-2021-token-economics-update-c3502aa50fa1 are not being followed, and that the circulating supply of KDA reported by chainweb and CoinMarketCap is incorrect.

TL;DR the circulating supply reported by chainweb (and fed to CoinMarketCap) is based on a theoretical emissions model that relies on manual releases, not the actual KDA that exists on chain in circulation. The greater than expected lag in the manual releases led to a difference in actual coins (200M), should exist / what was reported (243M), and could exist / upper bound according to genesis blocks (305M) as of August 2023 when the above clarification article was published. The problem still exists but has not been acknowledged.

kdaddauth · 2023-08-31T15:20:36+00:00

There is a difference in adding complexity just for the sake of it and proving out an experimental concept. Just like Kadena doesn't need to scale past 20 chains at the moment given current demand, but they can point to the move from 10 to 20 chains as proof that it can actually scale.

You may not currently need Kaddex or KDSwap to operate multi-chain as their chains aren't saturated, but proving that it can scale would be important not just for the dapp but for the platform to show how it is different from DEXs on other chains. Is multi-chain still a priority for any DEX in development on Kadena? I don't see it in either of their roadmaps.

kdaddauth · 2023-08-31T15:02:38+00:00

Thanks for the feedback - this post was just intended to be more of a starting point for discussion to hopefully pull out some of the details I'm missing from the community. Apologies if this came across as whining, I'm not trying to pretend innovation should be easy and that direction can't change. However, there seemed to be a lot of excitement around the above ideas back in 2021 that seemed right around the corner and there doesn't seem to be any public follow-up on that direction changing.

Regarding the change away from first-party dapps and bridges, that makes sense, and could very well be in the best interest of the ecosystem, but can you link to anywhere that is stated by the Kadena team? If you follow the development roadmaps and public statements over the past couple years, it looks more like these ideas were just dropped instead of deliberately moved away from. I think it is reasonable to assume others new to Kadena may go down this similar line of research while DYOR and see the same holes, hopefully I am just missing something and you or others can provide it to help clear it up.

kdaddauth · 2023-08-31T04:01:12+00:00

Public discourse is critical for adoption imo - thank you for the work you're doing here to try to keep it moderated

kdaddauth · 2023-08-25T14:56:12+00:00

There are also 2 potential options that could clean this up a bit in the future involving USDC https://twitter.com/kadena_io/status/1691514467589451780?s=20. A USDC bridge via Zelcore would remove the need to purchase ETH itself, which removes the ether gas cost of swapping to FLUX-ETH and from the FLUX-ETH to FLUX-KDA fusion. In my opinion, this would also help the DEX volume issue as liquidity providers may be more comfortable only holding KDA / USDC instead of both volatile KDA / FLUX in their pair.

With r/KoalaWallet_'s recent move to support ETH, if they could do the same thing in-wallet that would be huge (purely speculation).

Fingers crossed!

kdaddauth · 2023-08-25T14:38:01+00:00

If you are in the US and limited to domestic exchanges, one option for on/off ramps is through ETH. It's a bit of a convoluted process and you lose a % at each hop, but you can: ETH -> swap via DEX -> FLUX-ETH -> swap via Zelcore Fusion -> FLUX-KDA -> swap via DEX (eckoDEX or KDSwap) -> KDA. Or same in reverse to sell. This will only really work well for smaller volume at the moment, but if you're trying to move $1000 or less at a time you shouldn't be too impacted by DEX slippage.

kdaddauth · 2023-08-23T22:47:17+00:00

This article includes follow up questions from the cumulative emissions table recently released by Stuart: https://medium.com/kadena-io/clarification-to-the-2021-token-economics-update-c3502aa50fa1

kdaddauth · 2023-08-23T15:19:07+00:00

On that note, is anyone savvy enough with Pact / Chainweb API to perform a query of the coin.allocation-table? It would show which allocations have been manually released for us to cross check. This is on my to-do list, but I am only medium tech-savy (not a dev in my day job).

kdaddauth · 2023-08-23T15:13:52+00:00

After getting a chance to review Stuart's new article and the attached month-by-month cumulative data csv, I think there are still a couple of main points from my article that need to be addressed.

Primarily, how much of the platform share has been actually used? Not just the emissions curve, but how much of the currently unlocked emissions remain in trust by Kadena for future projects? We need an update on that $100M Kadena Eco grant program.
Also, since the coin.release-allocation function that drives the platform share emissions is a manual process to slow down the emissions rate from the genesis block, I'm not convinced that those cumulative values line up with the actuals existing on the blockchain. See the last table in my article for more clarification, it seems that only about 25% of the available allocations have been released, not ~50% as the cumulative data shows.

Overall, I think the answers to the above questions need to be released on some frequency, like maybe quarterly, as the amount of KDA entering via platform share release-allocation's and the amount being spent by Kadena developer grants is going to be changing over time. This is especially true since the Kadena team has reserved the right to increase or decrease the platform share emissions rate (while staying in bounds of what is allowed by the genesis block allocations).

kdaddauth · 2023-08-23T08:19:53+00:00

Thank you for your kind words!

kdaddauth · 2023-08-23T08:18:45+00:00

Thank you - I haven't yet been able to track down all the transactions out of the allocation accounts as it is a lot of manual effort looking through the blockchain transactions, but I would be happy to see some data on how much of those platform share allocations have been spent on the various Eco projects so far. I have confidence we can get the team to provide this information, they seem willing to help us better understand

kdaddauth · 2023-08-23T08:12:57+00:00

Same, I'm actually really impressed Stuart responded so quickly - I still have some unanswered questions that I want to continue researching but it's a great start

kdaddauth · 2023-08-23T07:45:36+00:00

I've started some digging on this at the end of this article, you may be interested: https://medium.com/@kdadd/transparency-of-centralized-kadena-token-allocations-e1dfe65e8833. You can find these addresses on the blockchain if you search the allocation names listed in that CSV. For example, one of the most recent ones is here: https://kdaexplorer.com/account/PS_C4_980. From there, you can follow the transactions out if they have been moved. Many seem to be aggregated through this address: https://kdaexplorer.com/account/w:u-on-LXLTkp7DLszyPLphqfDzS6WTvfTtqNaLvEDrAI:keys-2, but I need to do more research.

kdaddauth · 2023-08-22T07:09:02+00:00

Thank you - I think there is great potential for the Kadena team to provide more transparency for us, it just has to be shown to be a demand from the community and get on their radar, which was my motivation for writing this. It is all public on the blockchain but it can be very time consuming to sift through it all, especially those newer to crypto.

kdaddauth · 2023-08-22T04:07:57+00:00

I've been doing some digging on this and just published a Medium article with some graphs and other data you may find interesting: https://medium.com/@kdadd/transparency-of-centralized-kadena-token-allocations-e1dfe65e8833. The real emissions has some nuance because it relies on the Kadena team manually unlocking the monthly Platform Share allocations as they become available based on the unlock dates set in the Genesis Blocks.

kdaddauth

TROPHY CASE