Leveraging Investment to Support Kinetix Users and veKAI Stakers.

At present, it does not appear that the Kava Foundation will be returning the capital withdrawn from their previous LP position. As such, Kinetix’s LP incentives will be discontinued in the near future.

In addressing current circumstances, Kinetix’s cardinal priority remains supporting those that have contributed and added value to the Kinetix DeFi suite – especially veKAI holders.

In order to mitigate any challenges arising from this situation and act promptly to reimburse and support both Kinetix users and veKAI stakers, Kinetix is now prepared to take action via a strategic investment opportunity.

Kinetix has secured a USDt-denominated investment allocation in Flare-native DeFi suite SparkDEX via its forthcoming token launch. The investment terms include a $104,000 allocation in the $SPRK token at a $6.5 million FDV (Fully Diluted Valuation), with SparkDEX launching at a $10 million FDV.

At launch, Kinetix will be able to distribute $160,000 worth of assets to the Kinetix community. In order to support veKAI holders seeking liquidity, approximately $850k to $1 million will be provided as seed liquidity in the initial SRPK/FLR and SPRK/USDT pools. The launch is anticipated to take place in approximately 1 to 2 months.

The investment breakdown will go as follows:

$104,000 from the Kinetix fee receiver wallet will be invested into $SPRK. Any remaining funds in the wallet will be used to cover future expenses.

In return, Kinetix will receive $160,000 worth of $SPRK tokens, which it will subsequently distribute to veKAI holders from the designated snapshot.

veKAI holders will receive a weighted portion of $SPRK tokens, with 25% of their allocations received at launch, and 75% vesting linearly over 12 months – a model which mirrors that of pKFI.

To be eligible to receive $SPRK, veKAI holders must send their tokens to the foundation within a designated time frame. More info on this process will be provided in the event this proposal is passed by the Kinetix community.

*The snapshot will take place at the block where the Kava Foundation removed its liquidity.

As an additional function, this measure will also help reduce the supply of $KAI and proportionally increase bribes to remaining holders.

In the meantime, Kinetix’s income will be redirected via the following model:

100% of income sourced from the Kinetix Perpetual Exchange V1 will be allocated to bribes (not inclusive of funds exchanged for $SPRK).

100% of income sourced from the Kinetix V3 DEX will be allocated to Buyback-and-Burns.

Voting Options: For: Approving the above measures. Against: Rejecting the above measures.

Thank you for your consideration and participation in this governance proposal.