Kava 12: A Game Changer for the Cosmos Ecosystem

Introducing Kava 12: Bringing Flexibility and Control to Cosmos DAOs.

Kava is taking a big step forward with the release of Kava 12. The new version is introducing a revolutionary new DAO technology that enables any Cosmos chain DAO to have more control and flexibility over their emissions.

Every Cosmos chain has emissions. Before it was unclear where emissions flow to and how to use them for initiatives in an ongoing automatic way. Now this can be done within the Kava DAO’s new flexible structure.

Here is how Kava is adapting this Cosmos DAO technology to fit the needs of its ecosystem:

• Clear modular emission control: Emissions will flow clearly to the Kava community pool where it will be held. The Kava DAO will have greater flexibility and control over where funds then flow for portfolio management and fund allocation for growth initiatives.
• Kava DAO community pool can now hold a portfolio of assets. Instead of just KAVA, the community will now have control of a portfolio of assets that it can rebalance given different trends and market conditions
• Greater visibility into Kava DAO community portfolio and flow of funds. Transparency is essential for a thriving DAO. Kava community will be able to see a snapshot of the value of the community pool portfolio.
• The ability to burn assets based on usage parameters
• Ability to cap total supply based on Kava DAO governance (unlike most Cosmos chains which inflate indefinitely, Kava can have a predetermined maximum total supply, rendering it ultimately deflationary).
• The real KAVA staking APY will now be a fixed, remaining independent of supply, and a first-class parameter instead of fluctuating based on the number of bonded tokens. That change will make the staking rewards more predictable for the community.

The goal is for the Kava DAO to set a maximum number of KAVA and create a community run portfolio of assets that will ensure Kava can weather any market conditions and grow for many years to come while being able to be deflationary against ecosystem usage.

“It is very important for a top crypto ecosystem to be deflationary against the revenues it generates from demand of the products built on it. It's also extremely difficult for an ecosystem DAO to accurately forecast these revenues in order to set aside a sufficient treasury to enable growth into sustained revenues from fees etc. Kava DAO new architecture is a big step in the direction of providing tools for all cosmos projects to achieve these goals”

– Scott Stuart, Founder Kava Labs

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Examples of the types of initiatives that the Kava DAO portfolio of funds can allocate to are:

• Programmatically rewarding projects built on the ecosystem through Kava Rise
• Programmatically rewarding infrastructure initiatives
• Supplying community pool assets to any qualifying protocol to fuel growth
• Reallocated community pool assets based on market conditions
• Provide SAFE coverage for users of qualifying protocols
• Funding hackathons and other developer focused conferences

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It will be possible to supply community pool funds to other protocols, including smart contracts on the EVM chain. 

The goal of the new DAO technology is to make the reward distribution more transparent, flexible, and predictable for all stakeholders, giving more control to validators and delegators over their rewards.

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“In Kava 12, the community pool is no longer funded through an abstract tax on the staking rewards and fee pool. Instead, it is directly minted by a new module, which has a new parameter that controls community pool funding. This new system helps to grow the Kava Network and Kava Rise protocols, making adding new functionality easier and allowing the community pool funds to do more for the Kava community. The Kava DAO now has more control, flexibility, and predictability of the reward distribution and helps grow the network, making it more attractive for all stakeholders.”

– Robert Pirtle, Senior Software Engineer at Kava Labs.

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A DAO-Centric Step Forward

The launch of Kava 12 marks an exciting new chapter in the history of Kava. This new DAO technology is a powerful tool that will help grow the ecosystem and bring more value to the community. 

This is a game changer for the Cosmos ecosystem by introducing a DAO-centric approach that provides flexibility and control over emissions. That makes it possible to fund other protocols giving the Kava DAO more flexibility, and predictability over reward distribution.

Be sure to join our community to learn more about this groundbreaking new module and be part of building the future of decentralized governance.