[Temp Check] Further Unwinding the Cooperation Between RingDAO and KtonDAO

[hackfisher]

Summary

To reduce RingDAO’s long-term deficit and recurring treasury expenses, this proposal suggests further unwinding the current cooperation between RingDAO and KtonDAO.

The main change is to reduce the Current Annual Incentive provided by the RingDAO Treasury to KtonStaking from 20M RING per year to 0. Existing users should remain protected during the transition, while new Deposit and Staking activities should be gradually phased out.

Background

The current KtonStaking incentive comes from the previous cooperation around the “RING Deposit for KTON” mechanism. This mechanism was originally designed to encourage RING locking and KTON participation.

However, RingDAO is now facing long-term treasury pressure and needs to reduce recurring expenses. Continuing to fund KtonStaking with 20M RING per year creates an ongoing burden for the RingDAO Treasury.

At the same time, KtonDAO has its own governance and should independently decide the future direction of KTON, including its issuance model, utility, staking design, treasury strategy, and potential new use cases.

Motivation

The goal of this proposal is to:

1. Reduce RingDAO’s recurring treasury expenses.
2. Lower long-term pressure on the RingDAO Treasury.
3. Make the financial responsibilities of RingDAO and KtonDAO more independent.
4. Protect existing users during the transition.
5. Give KtonDAO more autonomy to redesign KTON’s future utility and economic model.

This proposal does not deny the long-term value of KTON. It only proposes that RingDAO should no longer continuously fund KtonDAO-related incentives from the RingDAO Treasury.

Proposed Changes

1. Reduce the Current Annual Incentive from the RingDAO Treasury to KtonStaking from 20M RING per year to 0.

2. Since this incentive was originally connected to the KtonDAO “RING Deposit for KTON” cooperation, RingDAO also suggests that KtonDAO cancels or phases out the “RING Deposit for KTON” protocol through KtonDAO governance.

3. To protect existing users, Deposit withdrawal in Collator Staking should remain supported for 1 year, or until all existing Deposits have expired or can be migrated.

4. The frontend entry for creating new Deposits should be removed.

5. As existing KtonStaking positions gradually expire, KtonStaking should stop accepting new KTON Staking.

6. After the phase-out period, KtonStaking should only keep the necessary functions for Unstaking and claiming pending rewards.

User Protection

This proposal should not affect users’ existing rights to withdraw, unstake, or claim already accrued rewards.

Existing users should be able to:

• Withdraw matured Deposits.
• Unstake existing KTON positions.
• Claim pending rewards.
• Complete the transition within the proposed support period.

No existing Deposit should be forcibly canceled before maturity.

Treasury Impact

If implemented, RingDAO Treasury will stop allocating 20M RING per year to KtonStaking.

The unallocated RING should remain in the RingDAO Treasury and may be used to reduce deficits, support ecosystem maintenance, fund application growth, or serve other purposes approved by future RingDAO governance.

Governance Scope

This proposal is submitted from the RingDAO perspective.

RingDAO governance can decide whether to stop the RingDAO Treasury incentive to KtonStaking.

However, changes to the “RING Deposit for KTON” protocol itself should be decided by KtonDAO governance, since KTON issuance and KtonDAO protocol parameters belong to KtonDAO’s governance scope.

RingDAO may recommend and coordinate with KtonDAO, but KtonDAO should make its own final governance decision.

Expected Impact

For RingDAO:

• Reduced recurring treasury expenses.
• Lower long-term financial pressure.
• More treasury flexibility for core ecosystem development.

For KtonDAO:

• Greater independence from RingDAO Treasury incentives.
• Stronger need to explore sustainable KTON utility.
• Opportunity to redesign KTON’s economic model through its own governance.

For users:

• Existing positions remain withdrawable and claimable.
• New Deposit access will be phased out.
• Users will have a transition period to exit or migrate.

Conclusion

This proposal aims to make the relationship between RingDAO and KtonDAO more financially independent and sustainable.

RingDAO should no longer carry a recurring 20M RING annual incentive for KtonStaking while facing treasury pressure and long-term deficits. At the same time, existing users should be protected with a clear transition period.

KtonDAO can continue to explore future use cases, utility, treasury strategies, and economic models for KTON through its own governance.

[hackfisher]

https://github.com/orgs/ktondao/discussions/55

[hackfisher]

Previous proposal for reference: https://gov.ringdao.com/proposal/0xf8620cdaeeffa292b6b399cce458c320b2a725308e79664af7e54f9298c30331

[danairey]

This makes absolutely no sense. Only Reason I still own ring and kton is cause of the staking mechanism , hoping that some product gains traction. Without ring , kton is essentially worthless and you simply killing the token! If this plays out, Im selling all my ring and kton, for the little I will get. The staking mechanism is great as it is.