Kwenta State Log

A living document defining the state of Kwenta

KIP-102: KIP incentive changes

Simple Summary

This KIP proposes a changes to a structured rewards program to incentivize community members for contributing Kwenta Improvement Proposals (KIPs). The rewards will be paid after KIP is voted in and will not be applicable to Core Contributors and current Council members. A monthly transparency report on KIP incentives will be published by the adminDAO.


This KIP changes a tiered rewards system for approved community-submitted Kwenta Improvement Proposals (KIPs), aiming to encourage participation and acknowledge contributions. Core Contributors and Council members are not eligible. Rewards are categorized by the proposal's impact and complexity, and a monthly adminDAO report will disclose reward distributions.


  • Transparency and Visibility: A well-structured rewards program will ensure that all contributions are publicly acknowledged. This fosters openness about who is contributing to the ecosystem and how they are being compensated.
  • Better Community Engagement in Governance: By incentivizing KIP submissions, more community members will be motivated to take an active role in governance, enhancing the quality and diversity of proposals. By establishing clear guidelines and incentives, we aim to stimulate innovation, drive meaningful changes, and maintain a high level of community involvement.


Authors of KIPs are eligible for KWENTA rewards for having KIPs voted in. Once a KIP reaches the approved stage, the adminDAO will classify the KIP into one of three categories.

  • Small change: 250 USD worth of KWENTA. This reward would be given to authors that implement a minor change to the protocol such as a parameter change or a cosmetic change. Note that cosmetic product changes can be processed through the Kwenta product feedback session in the community which includes separate rewards.
  • Regular KIP: 500 USD worth of KWENTA. This reward would be given to authors that implement other than a small change to the protocol such as multiple parameter changes, process changes, and new feature proposals.
  • Custom package: For larger KIPs that require extensive involvement, the adminDAO may manufacture a custom rewards package that suits the KIP. Because new KIPs are often closely related to their duties, Core Contributors (CCs) and current elected Council members are not eligible for this incentive. In the event there are multiple authors, the reward will be distributed evenly across the authors (Ex. A KIP with two authors would be split 50/50 unless otherwise specified). All KWENTA rewards will follow the same vesting model as inflationary rewards. CKIPs and KTRs do not apply to this rewards program. AdminDAO will publish a monthly KIP incentives transparency report with information about KIPs and paid incentives.