Improving the Token Landscape in KONG Land

This post aims to provide a comprehensive assessment of the current KONG Land token landscape and start a discussion. The objective is to create a more streamlined, valuable, and user-friendly ecosystem through token consolidation and utility enhancement. Additionally, there is potential to explore migrating to an L2, like Base, and consider other creative ideas to add value to KONG Land, such as creating an L3.

Current Challenges

  • Too Few Citizens: With only 500 Alpha tokens and less than half burned, the number of active citizens is insufficient for robust community engagement. There is no clear path to citizenship today.
  • Broken Liquidity: The Alpha $CITIZEN (ERC20) suffers from lopsided liquidity pools, making it difficult to acquire affordable citizenship.
  • Complexity: The process to burn $CITIZEN (ERC20) into $CITIZEN (ERC721) is complicated. It involves scanning a physical KONG Land passport with the KONG app. This process is no longer possible due to the passport distribution being on hold and the KONG app being removed from the iOS app store.
  • Fragmentation: Multiple tokens, including $CITIZEN ERC721, $CTZN, and Green Card tokens, create significant complexity and confusion, adding overhead to management and deterring potential new citizens from engaging effectively with KONG Land.

The goal is to reduce the number of tokens, focus on key tokens, and create a cohesive experience.

KONG Land Tokens

Here’s the current list of tokens in our ecosystem:

1. $CITIZEN
Alpha Citizen and governance token representing early citizenship in KONG Land. Previously qualified for the initial $LAND airdrop, with future distributions likely shifting to a UBI model. Can be burned for $CITIZEN (ERC721).

2. $CITIZEN
Created by burning the $CITIZEN (ERC20) token to reveal Alpha PFPs. Used for governance.

3. $CTZN
Created to recruit additional citizens. Previously qualified for the initial $LAND airdrop. Does not have an associated PFP.

4. $METIC (KONG Land Green Card - Season 2024)
Provides temporary, two-year access to citizen-only channels on KONG Land’s Discord and access to embassies during IRL events.

5. $LAND
Economic token representing contributions made to KONG Land. Distributed through an initial airdrop to $CITIZEN and $CTZN holders, with future distributions potentially shifting to a UBI model.

6. $RERRO
Used as a points system to track participation in the IRL RERRO Quest game at ETHDenver 2024.

7. $KONG
Created prior to KONG Land; originally imbued into Kong.cash notes. Considered an ‘honorary token’ of KONG Land. There is a $KONG/$CITIZEN Uni v2 pool.

L2 Fresh Start

On a previous community call, the idea of migrating our token ecosystem to a Layer 2 solution was discussed to enhance accessibility and utility. Base is attractive due to Coinbase’s significant investment in onboarding its large customer base, its low gas fees, and its active ecosystem. This would make transactions more cost-effective and potentially boost token utility.

Benefits of Migrating to Base:

  • Consolidation: Simplify the token system by removing redundancy and complexity.
  • New Liquidity Pools: Create new liquidity pools on platforms like Aerodrome to boost visibility and liquidity. Establish a new liquidity pool for $CITIZEN upon migrating to Base to improve accessibility and trading efficiency.
  • Increased Attention: Leverage Base’s growing popularity to draw more attention to KONG Land.

The low gas environment on Base would facilitate building new functionality and improving liquidity. However, such a large-scale migration involves several technical considerations that need discussion.

Technical Considerations:

  • Migration Process: Design the migration process to ensure seamless token conversion while maintaining the value of existing NFTs and managing liquidity pools.
  • Contract Upgrades: Upgrade smart contracts to handle the new architecture while maintaining compatibility with existing governance frameworks.
  • Cross-Chain Interactions: If token(s) need to be kept on Ethereum, implement a cross-chain mechanism to ensure smooth interactions between tokens on different chains.

Other Ideas to Add Value to KONG Land:

  • Staking System: Implement a system where citizens can stake their CITIZEN NFTs to earn $LAND tokens through a UBI-like mechanism, boosting the utility and value of $LAND and incentivizing citizen engagement.
  • Layer 3 Creation: Create a Layer 3 for microtransactions and KONG chipped applications, potentially enhancing token utility beyond current use cases.

Please join the discussion if you have any feedback or questions, or if you have new ideas to suggest. Your input is really important to moving forward on this - thanks!

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