tokenomics

$KIRITE captures protocol fees from private transfers. Fees are collected in SOL into the relayer treasury, used to buy $KIRITE on-market, and distributed to $KIRITE stakers. The more privacy volume, the more buy pressure on $KIRITE and the more rewards flow to stakers.

token utility

fee flow

per-withdraw fee: 0.1% of denomination

flow:
  user pays 0.1% on withdraw (SOL)
       →
  relayer treasury (SOL pool)
       →
  buy $KIRITE on-market
       →
  distribute $KIRITE to stakers (100%)

flywheel mechanics

More privacy volume turns into more SOL in the treasury, which turns into more $KIRITE bought on-market, which turns into more rewards routed to stakers. The staker is the protocol's first customer. Their alignment with usage is direct: the more the protocol is used, the more they earn.

why all to stakers

Direct holder distribution is rare in crypto for two practical reasons. First, paying passive income to every holder looks like an investment contract under U.S. securities law and attracts a regulatory hit the protocol cannot survive in its early bootstrap phase. Second, paying every dust wallet on chain wastes gas and dilutes the reward for the holders who actually care. Stakers self-select by locking tokens, which narrows the recipient set and converts the relationship from passive holding into active participation.

We chose buy-and-distribute over buyback-and-burn because the staker is the entity whose alignment matters most during the early phase. Burning helps every passive holder slightly; distributing rewards the holders who took the action of locking tokens to back the protocol.

staking program

The staking program is live on Solana mainnet. Users lock $KIRITE into the staking contract and earn a share of the protocol fee buybacks.

• non-custodial — tokens stay in a PDA derived from the user's wallet; no central operator can move them.
• Token-2022 compatible — KIRITE mint is Token-2022; the staking program uses token_interface to handle both legacy SPL and Token-2022.
• on-chain stake / unstake / claim — every interaction is a public Solana instruction.
• amount × time — rewards distribute proportionally to staked amount and stake duration.

phase 1 vs phase 2

Phase 1 (live now). Staking program is deployed on Solana mainnet. Stakers can lock $KIRITE today; the contract is verified end-to-end. Reward flow is queued but not yet active because the privacy product is not yet shipped.

Phase 2 (privacy mainnet). The relayer begins collecting 0.1% per withdraw in SOL, the buyback module begins converting SOL into $KIRITE, and the distribution module begins paying stakers proportional to their stake. Reward flow turns on the moment privacy mainnet is live and verified.