Proposal for Liquidity Mining and Staking Opportunities Outside Shibarium

General
1

Rather than burn a significant supply of KNINE can we use it to incentivize the growth of KNINE platform and community. The airdrop has been a huge motivator for many of us the past year, and to take a large portion of that away after a year of accumulating is tough….

I suggest an alternative solution……

  1. Objective

This proposal aims to expand KNINE’s reach and utility by introducing liquidity mining and staking programs on platforms outside Shibarium. These initiatives will reward users for providing liquidity, increase token adoption, and boost trading activity across centralized exchanges (CEXs), other blockchains and other DeFi focused platforms such as Aerodrome Finance, CURV, polygon

  1. Key Components of the Proposal

A. Liquidity Mining on Centralized Exchanges (CEXs)

  1. Targeted Platforms:
    • Focus on MEXC, GateIO, and other DeFi focused areas where significant KNINE activity already exists or can grow.
    • Optionally explore additional CEXs and DEXs for broader exposure (e.g., KuCoin or Binance).

  2. Mining Event Structure:
    • Trading Mining: Users earn rewards proportional to their trading volume on KNINE/USDT pairs, Ethereum and other blockchain.
    • Liquidity Mining: Users providing liquidity on CEXs/DEXs KNINE/USDT earn KNINE rewards based on their contribution.

  3. Reward Allocation:
    • Allocate 2-3% of the reclaimed KNINE supply to fund mining and liquidity programs.
    • Distribute rewards over 3/6/9/12 months to ensure steady participation.

B. Cross-Chain Staking Opportunities

  1. Multi-Chain Staking Pools:
    • Deploy staking pools on popular blockchains like Ethereum, Base (Aerodrome Finance), Binance Smart Chain (BSC), Polygon, Optimism (Velodrome, Uniswap) CURV, to attract users outside the Shibarium ecosystem.
    • Enable KNINE holders to stake their tokens and earn rewards in KNINE or other ecosystem tokens (e.g., SHIB, BONE, MATTIC,).

  2. Reward Allocation:
    • Allocate 1-2% of reclaimed KNINE supply to incentivize stakers on these platforms.

  3. Flexible Staking Options:
    • Offer both locked staking for higher APY and flexible staking for liquidity-conscious users.

  4. Strategic Partnerships:
    • Partner with DeFi platforms like PancakeSwap (BSC), Uniswap (Ethereum), or QuickSwap (Polygon) to host staking pools and drive liquidity.

C. DeFi Liquidity Pools

  1. Decentralized Exchanges (DEXs):
    • Introduce liquidity mining programs on major DEXs outside Shibarium (e.g., PancakeSwap, SushiSwap, Aerodrome Finance, CURV.
    • Incentivize users to provide liquidity for KNINE pairs (e.g., KNINE/USDT or KNINE/ETH or just KNINE).

  2. Dual Rewards:
    • Collaborate with DEX platforms to offer dual rewards (e.g., KNINE + native token of the DEX).

  3. Token Burn Integration:
    • Burn a percentage of trading fees or rewards generated through DEX/CEX liquidity pools to further reduce circulating supply.

  4. Cross-Chain Strategies:

    • Integrate KNINE with Bridges:
    • Examples: Multichain, Synapse, or LayerZero to facilitate cross-chain transactions.
    • This allows KNINE holders to move tokens across ecosystems easily.

  5. Benefits:

For KNINE Holders:
• Enhanced Liquidity: Improved liquidity across multiple platforms reduces slippage and enhances the token’s trading experience.
• Reward Opportunities: Holders earn KNINE and other tokens through mining and staking programs.

For the Ecosystem:
• Increased Adoption: Expands KNINE’s visibility and adoption beyond Shibarium into other chains and exchanges.
• Improved Token Economics: Combines mining rewards with token burns to balance supply and demand.

For Marketing and Branding:
• Cross-Chain Reputation: Establish KNINE as a versatile asset across multiple blockchains and CEXs.
• Community Engagement: Reward active users while attracting new ones to the ecosystem.

  1. Implementation Plan

Phase 1: Preparation
• Finalize reward allocations and collaborate with MEXC, Gate.io, Aerodrome Finance and DEX/CEX platforms.
• Develop smart contracts for staking pools on Ethereum, BSC, or Polygon.

Phase 2: Execution
• Launch liquidity mining events on CEXs and DEXs.
• Deploy staking pools on selected chains with coordinated marketing campaigns.

Phase 3: Marketing and Monitoring
• Promote the programs through social media, influencers, and partnerships.
• Regularly review participation metrics and adjust rewards or timelines as needed.

  1. Risks and Mitigation

    1. Dumping Risk:
      • Gradual vesting for mining and staking rewards to prevent sell pressure.
    2. Community Backlash:
      • Ensure transparent communication about program benefits and its role in enhancing KNINE’s value.
    3. Market Conditions:
      • Monitor market trends to optimize reward distribution and maintain token stability.

  2. Metrics for Success
    • Trading Volume Growth: Increased volume on MEXC, GateIO, Aerodrome (Base), Polygon.
    • Liquidity Depth: Improved liquidity on KNINE pairs across Ethereum, other block chains, CEXs and DEXs.
    • Staking Participation: High adoption rates for staking pools across chains.
    • Token Value Stability: Reduced sell pressure and improved price stability over time.

Conclusion

This proposal diversifies KNINE’s ecosystem by introducing liquidity mining and staking programs on platforms outside Shibarium. By incentivizing participation on CEXs, DEXs and popular blockchain networks, the initiative fosters broader adoption, improves token liquidity, and strengthens KNINE’s market position.

2 Likes
2

I need the communities help with molding this to our liking….

3

Awesome suggestion Ruggrat.

I believe this should go under the new Sub Markting for Shane to look into.

1 Like
4

This is a deep subject.

How would this affect the overall design and plan for Knine. I like to see some feedback from the Knine developers on this option.

2 Likes
5

Here’ just one thought…

Cross-chain strategies can be a double-edged sword. While they enhance accessibility and expand an ecosystem, they also present challenges that, if not managed carefully, could fragment a project’s community and dilute its brand identity. Here’s why:

1. Diverse Focus Dilutes Engagement

When a token like $Knine operates on multiple chains, the user base tends to split into smaller groups based on preferred platforms (Ethereum, BSC, Shibarium, Polygon, etc.). Each chain’s community has unique norms, platforms, and influencers, leading to:

  • Reduced centralized discussion and interaction in core channels like Telegram or Discord.
  • Difficulty in maintaining consistent communication and branding across chains.
  • Challenges in rallying the community around unified goals or initiatives.

Example:

  • $LUNA 2.0 vs. LUNC: After the Terra collapse, the ecosystem split between LUNA 2.0 (new chain) and LUNC (original). This fragmentation caused confusion, split loyalties, and diluted the brand identity of Terra as a whole.
  • $CAKE on BSC: While PancakeSwap thrived on BSC, attempts to port liquidity mining incentives to Ethereum failed to generate similar community momentum, as Ethereum users lacked the same engagement level as those on BSC.

2. Operational Complexity

Managing a token across multiple chains requires significant resources and coordination to:

  • Maintain liquidity pools on various DEXs.
  • Implement consistent staking and reward structures.
  • Address technical challenges like bridge security risks.

These tasks can overwhelm teams and stretch resources, leading to inconsistent execution or poor user experiences.

Example:

  • $FTM (Fantom): Despite its strong core community, attempts to integrate Fantom-based dApps with Ethereum and other chains diluted its identity. Many users perceived it as “trying to be everything,” leading to dissatisfaction among Fantom-first users.

3. Loss of Brand Identity

The more chains a project supports, the harder it becomes to maintain a distinct brand narrative. If $Knine markets itself as a Shibarium-native token but heavily incentivizes activity on Ethereum or BSC, it risks:

  • Losing its identity as part of the Shiba Inu ecosystem.
  • Confusing new users who associate $Knine with different chains and purposes.

Example:

  • $ONE (Harmony): Originally known for its focus on Harmony blockchain, its expansion into Ethereum and other ecosystems diluted its branding. It became harder for users to understand what $ONE stood for.

Key Lessons from Other Projects

  1. Focus on Core Ecosystem First: Projects like Shiba Inu and $DOGE succeeded by doubling down on their native ecosystems before considering expansion. Shiba Inu developed Shibarium to centralize its activities rather than dispersing them across multiple chains.
  2. Selective Expansion Works: Projects like $LINK (Chainlink) expanded cross-chain effectively by maintaining consistent branding as an oracle service while targeting high-impact integrations.

Mitigation Strategies for $Knine

If pursuing cross-chain strategies, consider these approaches to minimize fragmentation and brand dilution:

  1. Prioritize Shibarium: Make Shibarium the undisputed “home” of $Knine while positioning other chains as secondary options for onboarding new users.
  2. Unified Branding: Use consistent messaging and visuals across chains to ensure $Knine’s identity remains cohesive.
  3. Focus on Strategic Chains: Expand only to chains that add significant value (e.g., Ethereum for visibility or BSC for user volume).
  4. Community Management: Create chain-specific subgroups while maintaining strong centralized channels to ensure the community doesn’t feel scattered.

By keeping the focus on what makes $Knine unique while carefully expanding cross-chain, you can minimize risks of fragmentation and maintain a strong brand identity.

5 Likes
6

Great examples of challenges dealing with expansion and growth.

The light paper speaks on K9 expanding beyond Shibarium, what steps can K9 take to grow the product and community while removing some of these challenges you mentioned…

Immediate needs:
Marketing, marketing and more marketing
Volume
consistent community growth
Consistent TVL growth

1 Like
7

In short, I think it just shows how important that first step on a new planet really is, and how not to take it lightly or with a lack of seriousness. Many a project bigger than K9 have stumbled at the multi-chain hurdle, so we need to learn as much as possible from those examples. Thanks for you reply @Ruggrat :paw_prints:

1 Like
8

First of all - a very details proposal from Ruggrat. It is nice to see such initiative and brain effort from one of our key holders. I wish all were Ruggrat. :face_with_hand_over_mouth:

Having said that, I agree with Shane’s sentiment.

To add on to all he said - even if we were to proceed with something like that - we have to first estimate how much of DAO Treasury funds will have to be used up on these ‘bonuses’/initiatives and how sustainable would they be to maintain.

My worry is that this ‘marketing campaign’ may cause us too much compared to the effect that it will give in current market.

I still think the project should explore targeted opportunities for expansion - either think of new products for Shibarium/Eth - the blockchains we operate on, or replicating existing product on a chain that has potentially high demand for it / no/little competition, but like Shane said - while keeping Shibarium as our undisputed home not to dilute our brand identity and so returning the revenues generated there back to holders on Shibarium.

Smaller expansions/projects should have a calibrated risk while still having a high return/impact potential.

Blessings.

1 Like
9

Love the feedback… I think we’re on to something… just need more Brian power…

11

Brian approves :rofl:

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1 Like