Introducing KRE 3.1

Written by: Kin Foundation

A non-profit organization dedicated to growing the reach and impact of the Kin Ecosystem.

January 28, 2022

Update – March 1, 2022:

Following community feedback, the Kin Foundation will postpone the implementation of KRE 3.1.

The Kin Foundation is committed to achieving community consensus and finding solutions which all of the Kin community actively supports. Following the initial posting of KRE 3.1, the Kin Foundation was very pleased with the level of community engagement and discussion on the proposal. Some community members also suggested some interesting tweaks and alternatives. The Kin Foundation wishes to ensure all opinions, ideas and concerns are taken into account and therefore has elected to postpone the implementation of KRE 3.1 to spend more time reviewing the best ideas and key concerns from the Kin community.

An announcement will be made in due course with an updated proposal for the community’s further review and discussion.

Kin rewards developers for creating awesome experiences that utilize Kin through the Kin Rewards Engine (KRE). Today, the Kin Foundation has published a Kin Improvement Proposal for KRE 3.1 to update the logic of the rewards engine, along with changes to the monopoly clause and daily payout reward. The proposal can be found on github for community review and comment. 

In our previous blog post, we mentioned three key areas where we would like to see continued growth in the Kin ecosystem:

  1. Higher spends (more volume of Kin spent in apps)
  2. Higher balances for users (more users having bigger balances)
  3. Recognition for apps that contribute more to the Active User Count (AU).

While there are many ways of incentivizing this activity, we have proposed a method that maintains Active User Balances (AUB) as the key reward metric which is the basis of the current KRE in place today, while also rewarding apps that have higher spends, user balances and AU.

The logic of our proposal will work in a similar way to how Kin Ecosystem apps are rewarded for having a high AUB under the current KRE – where the reward is proportional to an app’s AUB compared to other apps.

The current KRE uses the following incentive:

  • An app gets more rewards if its AUB is higher than other apps.
    AUBapp / AUBtotal

The Improvement Proposal for the KRE will add the following incentives:

  • An app gets more rewards if it has higher spends than other apps: Spendapp / Spendmax
  • An app gets more rewards if its users hold individual higher balances: Balanceapp / Balancemax
  • An app gets more rewards if its AU is higher than other Apps: AUapp / AUmax

The formula is explained in detail in the proposal, but the expected outcome is that apps will also start to find ways to improve in these key areas. 

Advantages of the KRE 3.1

  1. While earlier versions of the KRE logic explicitly rewarded by creating spend thresholds (see KRE 2.0), KRE 3.1 allows app developers to compete upwards for user balances, spends, and AU as long as it is economically feasible.
  2. Apps will continue to need to find compelling incentives (Kin earn opportunities) either for a larger spread of their user base to hold higher balances (or at least increase the volume of Kin each user gets for an earn).
  3. Likewise, apps will need to give users compelling reasons to spend Kin in order to increase spend volumes.

Apps that naturally have higher spends and great earn opportunities will find themselves in an advantageous position. However, we would like to give all apps a chance to learn and adapt to the new proposal before its implementation.

We will assist in making relevant data available to Kin Ecosystem participants (and ample time to transition), so they can see where they stand and how to improve, before switching over to the updated KRE. 

As mentioned above, technical changes are also proposed to the monopoly clause of the KRE logic along with a reduction to the daily payout value.  Please refer to the full proposal for further details in relation to this.

The KRE proposal is open to community consultation until 1 April 2022, and for the daily payout value until 1 June 2022. For more information on how to contribute or provide edits, comments or other feedback, please see the How to Contribute guide located here. Please provide comments or feedback here.

About Kin

Kin is a decentralized cryptocurrency purposely designed to integrate easily across Mobile and Web Apps, with a built-in incentive model that rewards developers for increased usage. Apps built with Kin get paid for creating compelling cryptocurrency-based user experiences, where greater engagement results in shared economic benefits for users and developers. Today, the Kin Ecosystem boasts 60 million wallets, and has distributed over $70M in rewards across 60+ apps since its inception in 2017. Kin is an SPL token on the Solana blockchain, enabling consumer-scale apps to transact swiftly, with minimal-to-no fees. Learn more at

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