KAI

KAI is Kairence's governance and auction-premium token. Fixed supply, no continuous issuance.

• Standard: ERC-20, 18 decimals, Burnable, Permit, Votes
• Symbol: KAI
• Total supply: 100,000,000 KAI (minted entirely at deploy time)
• No further mint is reachable by any code path.

What KAI is for

Two things:

1. Auction premium. Every bid in the daily inference auction requires kaiBid ≥ 0.01 KAI. Winners pay a uniform-clearing amount of KAI (lowest winning bid × number of winners). All KAI paid by winners is burned — KAI is deflationary by design.

2. Governance. KAI implements ERC-20 Votes, so holders can delegate voting power for future governance proposals (parameter changes, new platform integrations, treasury actions).

Genesis distribution

Recipient	Share	Role
Treasury (multisig)	60M	Long-term protocol funding, grants, partnerships
Team timelock	20M	4-year linear vest + 1-year cliff (TimelockController)
Protocol-owned liquidity	15M	Paired with treasury USDC and locked permanently in an LP-locker
Genesis airdrop	5M	Merkle distributor, claimable by early lockers

The four recipient addresses are constructor arguments to KAI — the contract verifies the full supply distributes correctly on deploy (VerifyKAI.s.sol) and reverts if any tranche is wrong.

Why deflationary

KAI has no protocol fee that goes to treasury — instead, every successful auction burns KAI. This makes KAI's value a direct function of:

• Demand for inference access — more bidders → higher clearing KAI bid → more KAI burned per day.
• Total supply remaining — supply only decreases.

There is no inflation, no continuous emission, no staking-yield dilution. You either hold KAI or you don't.

Where to get KAI

• DEX. Buy on a Uniswap/Aerodrome pool once the protocol-owned liquidity is live.
• Genesis airdrop. If you were eligible (early DIEM locker on the pre-mainnet phase), claim through the Merkle distributor.

You do not earn KAI by staking DIEM in Kairence — DIEM staking earns you DD (the inference credit) and a principal claim. KAI is purely a separate governance / scarcity-rent token.

How to use KAI

For most users, the only use is bidding in the auction:

auction.bid(platform, ddAmount, kaiBid);
// ddAmount = your DD inference request
// kaiBid   = your KAI premium (will partially refund if you overbid)

If you don't intend to bid, you can simply hold KAI for governance and for the deflationary appreciation if demand grows.