Kronos DAO's Documentation!
Kronos DAO is the first decentralized reserve currency protocol available on the Klaytn chain based on the KRNO token. A decentralized reserve currency protocol, also known as Defi2.0, operates through protocol-owned liquidity.
Each KRNO token is backed by a basket of assets (e.g., KDAI, KRNO-KDAI LP Tokens, etc.) in the Kronos DAO treasury, giving it an intrinsic value that it cannot fall below.
You can participate in Kronos DAO by staking or minting. Based on economic and game-theoretic dynamics, the two strategies create a positive-sum environment in the market.
※ What is a Reserve Currency? Also called the key currency in real economy, it is a currency held by central banks or major financial institutions for international transactions.
Our goal is to build an infrastructure that anyone can use to access decentralized finance and other blockchain-based services. We believe that the decentralization of Kronos DAO will be crucial in enabling stability and consistency in the long run.
Kronos DAO holds the vision that one day the KRNO token ****can function as a global unit-of-account and medium-of-exchange currency. This is one of the reasons why our protocol is striving to reach out to a more global audience by going multichain, starting with the Polygon network.
In order to secure KRNO as a reserve currency, Kronos DAO has joined hands with various partners and will continue to expand its collaborations. Another goal of ours is to create the ecosystem where all of our partners can benefit.
Through this, users will be able to generate a stable passive income for the long term.
Klaytn seeks to achieve the mass adoption of blockchain by providing a user-friendly interface and having corporate-run consensus nodes by Klaytn Governance Council. Having a close relationship with corporates in the market might be helpful for the adoption of the general public.
However, it also means the ecosystem is easily affected by market volatility and sacrifices decentralization of the ecosystem, which hinders a big part of the blockchain community from participating in the Klaytn chain.
Kronos DAO aims to solve this by creating a non-pegged reserve currency called KRNO. KRNO can function as a currency that is able to hold its purchasing power regardless of market volatility and become an infrastructure for a decentralized community, thus attracting more community participation in building a sustainable ecosystem on the Klaytn chain.
The main benefit for 'stakers' comes from supply growth. The protocol mints new KRNO tokens from the treasury, the majority of which are distributed to the stakers. Thus, the gain for stakers will come from their auto-compounding balances, though price exposure remains an important consideration. That is, if the increase in token balance outpaces the potential drop in price (due to inflation), stakers would make a profit.
The main benefit for 'minters' comes from price consistency. Minters commit a capital upfront and are promised a fixed return at a set point in time; that return is given in KRNO tokens and thus the minter's profit would depend on KRNO price when the minted KRNO matures. Taking this into consideration, minters benefit from a rising or static price for the KRNO token!
Kronos DAO is a fork of Olympus on the Klaytn chain. Our team is mostly anonymous, born from the DeFi Community. We aim at becoming a Decentralized Autonomous Organization and are actively working towards that goal.
Currently most of the decisions are made by the core team, but we expect to be able to turn this into a DAO-governed model as soon as possible!