KUMA Token (Formerly IDEX Token)
Last updated
Last updated
The KUMA token aligns incentives between the protocol, traders, and KUMA token stakers. A unique staking mechanism helps secure the platform and rewards stakers with 40% of the protocol fees for their participation.
The core utility of the KUMA token lies in its staking mechanism. KUMA token holders who stake their tokens secure data for the platform's layer 2 settlement network (XCHAIN). In return for their role in maintaining the network, stakers receive 40% of the protocol's fees, offering a powerful incentive for users to participate and ensure the platform’s security and efficiency.
The roadmap for the KUMA token is divided into several phases, each designed to enhance liquidity, incentivize participation, and improve the overall user experience.
During this initial phase, 50% of protocol fees are allocated as protocol-owned liquidity. The liquidity pool will live on ETH L1 and provide an ever increasing liquid market for participants to trade.
25% of fees are used to purchase IDEX tokens from the open market.
These purchased tokens are paired with the other 25% of USDC to provide liquidity for the pool
Protocol Owned Liquidity can be viewed on .
In this phase, the Kuma points program goes live. This program aims to incentivize trade activity. Participants earn points based on their trading volume, with rewards designed to drive engagement and loyalty on the platform. By offering tangible benefits for active users, this phase builds momentum toward the full launch of staking.
The KUMA TGE will go live right before staking is implemented. Users will be able to redeem their KUMA tokens earned through points and swap their IDEX tokens to KUMA Token.
With staking fully implemented, the fee distribution model evolves to prioritize KUMA stakers while supporting the platform’s growth. The new structure is:
40% Protocol Development
40% KUMA Token Stakers
20% Protocol-owned Liquidity
Rewards to KUMA stakers are delivered in KUMA tokens. Specifically, 40% of the fees in USDC are used to purchase KUMA tokens from the open market. These tokens are then distributed to stakers, effectively auto-compounding their holdings and boosting their stake over time.
For protocol-owned liquidity, 10% of USDC fees are used to buy KUMA tokens, which are then paired with an additional 10% of USDC to maintain and expand the liquidity pool.
The overall effect is that 50% of the fees are consistently used to purchase KUMA tokens from the open market.
The IDEX token launched in 2018, and as such has different supply dynamics than many other tokens on the open market. An estimate of the current breakdown is as follows:
70% - publicly circulating; distributed via application incentives for previous products, airdrops, and treasury sales
30% team and treasury - grants to founders, employees, and company treasury. Note these tokens are fully vested (initial vesting was 4 years).
The remaining treasury tokens will be used to grow the protocol. A non-exhaustive list of initiatives includes:
Market making rewards
Points program
Trade competitions
Referral campaigns
Marketing giveaways
Partnerships
Airdrops