Token Design - $KVAI Utility Layer

• Core Utilities (Strategy Access, Performance Rebates, Voting): $KVAI acts as the central utility token within the Kvants ecosystem, providing gated access to advanced quantitative trading strategies. Token holders receive substantial performance fee rebates, enhancing net returns from strategies. Additionally, token ownership enables governance rights, enabling holders to vote on vault onboarding, fee structures, strategy priorities, and key ecosystem parameters aligning incentives closely between users and protocol health.

• Staking to Boost Yields: Kvants introduces staking mechanics to enhance investor yields and promote long-term holding. Users stake $KVAI tokens to unlock higher APYs across selected vault strategies. Staking levels dynamically influence yield multipliers, creating incentives for committed long-term participation, reducing token circulation, and directly benefiting dedicated ecosystem contributors.

• Burn & Buyback Mechanics (Driven by Vault Fees & Trading Strategy Performance fee): Kvants implements a deflationary tokenomics model through a systematic burn and buyback mechanism. 95% of the protocol-generated revenues from vault performance fees and trading profits are allocated to repurchase $KVAI tokens from secondary markets, which are subsequently burned or redistributed from the randomly bought back allocation. This dynamic mechanism maintains token scarcity, creates continuous buy-pressure, and sustainably aligns economic incentives among token holders, users, and protocol performance.

• DAO Structure (Vault Listing, Fee Decisions, External Trader Onboarding): Kvants operates under a decentralized autonomous organization (DAO) model. $KVAI holders directly govern critical protocol decisions, including approving new vault strategies, setting and adjusting performance fees, and onboarding external quant managers ("Pods"). Voting power is proportional to token stake, ensuring transparent, incentive-aligned governance processes. This decentralized decision-making structure promotes operational resilience and community-aligned growth.