2024 Komodo Improvement Proposal (KIP) Voting Official Results

Komodo Team
Komodo Team

2024 Komodo Improvement Proposal (KIP) Voting Official Results
Table of Contents
Table of Contents

Komodo Announces Upgrades to Enhance The Tokenomics Value of KMD Coin

May 15, 2024 — Komodo, a pioneer in blockchain technology, is excited to unveil the official results of the 2024 Komodo Improvement Proposal (KIP) voting, marking a significant milestone in the evolution of our native KMD coin.

The community-driven decision-making process has resulted in the approval of three pivotal proposals aimed at transforming the Komodo ecosystem.

Community-Driven Decision Making

Crucial to the success of these groundbreaking initiatives is the inclusive and democratic nature of the KIP voting process.

Every $KMD holder was eligible to participate in the voting by receiving KIP tokens, airdropped to them at a 1:1 ratio based on how much KMD they held in a non-custodial wallet. Centralized exchanges and custodial wallet services were excluded from the voting process.

KIP voting exemplifies Komodo's ethos of decentralization and on-chain community governance, ensuring that the voices of all holders are heard and valued in shaping the future of the ecosystem.

This is the second year that Komodo has held KIP voting. In 2023, KMD holders voted on KIP0001, which reduced the active user reward (AUR) from 5.1% to 0.01%. In total, 13.2+ million votes were cast last year.

In 2024, each of the three proposals received more than 14.1 million votes.

KIP0002: Reducing Block Reward


  • Total Votes - 14,154,025.168258
  • No Change - 598,558.643599 (4.2%)
  • Reduce Block Reward - 13,555,466.524659 (95.8%) ✅

KIP0002 will reduce the block reward from 3 KMD to 1 KMD.

This move is set to make the supply issuance of KMD more deflationary, aligning with Komodo's commitment to fostering sustainable growth and creating a similar tokenomics model to Bitcoin. However, unlike BTC, KMD will not utilize a halving mechanism.

By curbing the inflationary pressure on the KMD supply, this decision is poised to enhance scarcity and bolster the coin's long-term value proposition.

Additionally, Notary Node operators that run the dPoW network will receive a $200 USD per month subsidy to compensate for the reduced block reward. This subsidy will last until KMD price reaches a $1.50 monthly average, where it will be reduced by 50% to $100.

If the price later falls below this threshold, the full $200 per month subsidy will be added back.

At a $3 monthly average KMD price, the subsidy will be removed entirely. If the price later falls below this threshold, the $100 per month subsidy will be added back.

The KMD block reward reduction will coincide with the annual network upgrade (start of dPoW Season 8) on September 14, 2024 (Date Subject to Change).

KIP0003: Burning 100% of Transaction Fees


  • Total Votes - 14,153,621.228213001
  • No Change - 1,311,915.054719 (9.3%)
  • Burn, but no transaction fee increase - 12,218,959.573843 (86.3%) ✅
  • Increase 10x with Burn - 482,285.711007 (3.4%)
  • Increase 100x with Burn - 25,400.926181 (0.2%)
  • Increase 10x without Burn - 83,153.910497 (0.6%)
  • Increase 100x without Burn - 31,906.051966 (0.2%)

KIP0003 introduces a groundbreaking initiative to burn 100% of transaction fees.

This innovative approach not only serves to mitigate inflationary pressures but also introduces a mechanism for systematically decreasing the circulating supply of KMD over time.

As a result, the coin stands to benefit from an enhanced deflationary model, further solidifying its position as a store of value within the broader cryptocurrency landscape.

The KMD transaction fee burn mechanism will go into effect with the annual network upgrade (start of dPoW Season 8) on September 14, 2024 (Date Subject to Change).

This mechanism applies to any KMD transaction and works in addition to the KMD burn mechanism for Komodo Wallet DEX trades, which went into effect in December 2023).

KIP0004: Transitioning from Proof of Work to Proof of Stake

  • Total Votes - 14,170,397.815763
  • No change - 633,158.672948 (4.5%)
  • PoS - 13,022,611.385747 (91.9%) ✅
  • PoS + Masternodes - 6,316.498947 (<0.0%)
  • Gridcoin v1 style PoS - 476,404.395166 (3.4%)
  • Gridcoin v1 style PoS + Masternodes - 31,906.862955 (0.2%)

Undoubtedly, the most significant development arising from the KIP voting is the approval of KIP0004, signaling the Komodo blockchain’s transition from Proof of Work (PoW) to Proof of Stake (PoS) consensus mechanism.

This transformative shift underscores Komodo's unwavering commitment to environmental sustainability, as PoS consumes significantly less energy compared to PoW.

Notably, this decision follows successful PoW to PoS transitions of other leading cryptocurrencies, such as Ethereum and Ethereum Classic, highlighting a forward-thinking approach.

Once implemented, KMD holders will be able to secure the Komodo blockchain by staking KMD. In turn, users will earn part of the 1 KMD block reward proportional to the staked amount.

The KMD consensus change will coincide with the annual network upgrade in 2025 or 2026, depending on the demands of the consensus upgrade.

Looking Ahead

By embracing deflationary issuance models, transitioning to a more environmentally friendly consensus mechanism, and championing community-driven decision-making processes, Komodo reaffirms its position as a trailblazer in the cryptocurrency space.

Komodo CTO Kadan Stadelmann said,

“A special thanks goes out to everyone in the Komodo community who voted on this year’s Komodo Improvement Proposals (KIPs). These upcoming changes are poised to kickstart a new era of innovation, sustainability, and value creation for both the KMD coin and the entire Komodo blockchain ecosystem.”

Stadelmann also commented,

“Looking at the landscape of fiat currencies, inflation continues to run rampant and have a noticeably negative impact on global macroeconomics. In contrast, many projects across the crypto landscape are committed to chartering a new course by adopting a more deflationary, more fiscally sound economic model. That’s one of the main reasons why Satoshi Nakamoto invented Bitcoin. The same can be said about Ethereum, since its supply has become deflationary after ‘the merge’ in September 2022. The results of KIP voting clearly show that the Komodo community hopes to create a similar future for KMD.”

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