What does the KAVA token offer?

The $KAVA token is integral to the Kava app’s security, governance, and incentives functions.

There are three main use cases for the $KAVA token:

Security

The top 100 nodes validate blocks by a weighted bonded stake in $KAVA tokens. Economic incentives for validators come in the form of earning $KAVA as block rewards and a portion of the network’s transaction fees. Validators risk losing $KAVA via strict slashing conditions such as failing to ensure high uptime and double signing transactions.

Governance

$KAVA is used for proposals and voting on critical parameters of Kava. This includes but is not limited to the types of supported assets and dApps, their debt limits, acceptable assets to use as debt collateral, collateral ratio, fees, incentives, and the savings rate for various financial instruments introduced to Kava.

Incentives

A portion of KAVA emissions is distributed as incentives for scaling the chain. Most of these incentives go directly to protocols on the Kava chain via the Kava Rise program to drive Total-Value-Locked growth, encourage competition, and improve the health of the Kava chain.

This is why the Kava Rise program merges developer incentives with a revolutionary funding and distribution mechanism designed specifically to reward the world’s most innovative developers with meaningful ownership of the network they build on.

Through the program, Kava will become progressively more decentralized as builders and value flow into the network, fully realizing the promise of blockchain technology to empower contributors and users in a way that has never been achieved before.