NEOK Minting

Typically, NEOK is minted once a month, based on contributors’ time contributed to NEOKingdom DAO during the previous month. However, NEOK is also minted on an ad-hoc basis upon monetary or in-kind investments made to the DAO. There are no other grounds to mint NEOK, and NEOK is always directly minted to the person that contributed time or made the investment. There is no staking or reserve pool of NEOK, no predefined allocation between team/advisors/etc. or airdrops.

In practice, this means that the NEOKingdom DAO can mint NEOK only when there is value added to the DAO. Whether it be contributed time or funds/assets. Consequently, NEOK minting is continuous and happens always when value is added. There is neither an initial nor final NEOK supply. The number of NEOK in existence will keep increasing. This means the token supply can, in theory, increase infinitely. This fact raises the concern that existing token holders are diluted in the process.

It is essential to note that this dilution is not a flaw but a deliberate feature of NEOKingdom DAO and NEOK.

NEOKingdom DAO claims to challenge the status quo of how investment is perceived and value and success are shared. While at first view, it may seem unfair for early contributors or investors that they get diluted, the main reason for this feature is the assumption that the main growth and economic success of an organization are achieved at a later stage of the life cycle. For fairness towards those contributors who will generate growth and contribute to long-term success, the early contributors are the ones that need to be willing to share. The change in the status quo, that everyone involved in NEOKingdom DAO needs to be aware of, is that it no longer pays off to be early in the game and then be settled. On the other hand, founders, initial investors, and first contributors do not need founders’ agreements, reverse vesting contracts, and all those other instruments abused by start-ups and VCs at the moment – NEOK tokenomics will substitute all this with simple rules based on fairness, sharing and valuing lifetime.

The heroes of NEOKingdom DAO are the contributors. They are investing their lifetime, the most valuable asset and often under-appreciated. Contributors are always considered first and are the lifeblood of NEOKingdom DAO.