Karura Tokenomics

Economy Audit Scope Badge

KAR Overview & Token Details

Explore Karura’s tokenomics: $KAR powers a scalable, cross-chain DeFi hub on Kusama, offering stablecoins, staking, and efficient trading innovations.

Ticker
$KAR
Listing Price
$2
Total Supply
160,000,000
Niche
  • DeFi
TGE Date
2021-07-20
Tier 2
Tokenomics
Economy
Audit
Tokenomics
Audited
Investor
Information

Tokenomics Rating

Rank
#1192
Percentile
Top 61%
12
5
2
Economic Policies
66.49
Investment & Valuation
59.04
Utility & Value Flow
-
Liquidity & Market Making
-
Distribution Fairness
46.45

Tokenomics Structure (Token Supply, Allocation & Vesting Overview)

Allocation Distribution

Pool Name
Percentage
Vesting Information
Auction Reward34.00%30.0% at TGE , 12 Month Linear Vesting
Seed Round18.33%12 Month Cliff, 24 Month Linear Vesting
Treasury/Reserve11.62%No information
Series A10.80%36 Month Linear Vesting
Reward Reserve10.25%12 Month Linear Vesting
Team10.00%18 Month Cliff, 18 Month Linear Vesting
Ecosystem Development5.00%36 Month Linear Vesting
---
---
Showing 1-7 out of 7

Category Score
46.45out of 100
Percentile
Top 73%

Allocation Distribution Indicators

Highlights
0
Warnings
1
Alerts
1

Distribution Fairness

Token Allocation Benchmarks (vs Top Projects)

Token Allocation Deviation Analysis

Deviation Status

Public Sale
-6.3%
Medium
Community
+11.9%
High
Foundation
-8.9%
Medium
Insiders
-7.1%
Medium
Investors
+10.5%
High

Token Allocation Deviation Analysis

This section evaluates how Karura allocates its token supply compared to leading DeFi projects. It measures deviation across key stakeholder groups and determines whether the allocation aligns with proven benchmarks. The analysis helps assess whether KAR follows a fair and balanced distribution structure or introduces concentration risks.

Overall Deviation Status

Medium

Category Score
out of 100
Percentile

Governance Indicators

Highlights
3
Warnings
0
Alerts
0

Token Power

Token Governance Concentration Analysis

This section analyzes who holds actual control over the Karura circulating supply year over year, with a focus on early stages where governance risk is highest. It assesses whether the governance power of KAR is centralized or decentralized, and flags any dominance by insiders or investors.

Token Control Status

Launch
Decentralized
Year 1
Decentralized
Year 2
Decentralized
Year 3
Decentralized
Year 4
Decentralized

Insider Dominance Test

Passed

Investor Dominance Test

Passed

Category Score
68.45out of 100
Percentile
Top 27%

Inflation Indicators

Highlights
3
Warnings
1
Alerts
0

Emission Type

Circulation

Token Inflation (Annual Analysis)

This section analyzes whether KAR token inflation is sustainable over time. We compare annual emission rates against top-performing projects, assess how balanced the vesting and unlock schedules are, and evaluate how inflationary pressure may affect long-term token value, circulating supply growth, and investor dilution.

Year 1 Inflation

285.0%

Year 2 Inflation

36.8%

Year 3 Inflation

26.9%

Year 4 Inflation

0.0%

Inflation YoY

Category Score
70.31out of 100
Percentile
Top 37%

Supply Shock Indicators

Highlights
1
Warnings
1
Alerts
0

Emission Type

Circulation

Monthly Supply Shocks

Token Unlock & Dilution Events

This section tracks every KAR token unlock and dilution event across the full vesting timeline. We quantify the size and timing of each release, classify dilution risk levels (low, medium, high), and highlight the largest unlock event by date and percentage of total supply. Charts help understand emission pressure and anticipate potential supply shocks.

Supply Shocks Counter

2 Low Risk
1 Mid Risk
0 High Risk

Highest Supply Shock

23.8%
at Month 1

Detailed Information

Category Score
54.92out of 100
Percentile
Top 30%

Risk of Dilution Indicators

Highlights
1
Warnings
0
Alerts
1

Token Emission, Float and Circulating Supply Analysis

This section evaluates the circulating supply and emission schedule of KAR, focusing on its initial float at TGE, its dilution profile over time, and how these levels compare with top-performing projects.

Initial Float

10.20%

Best Performer Float

12.34%

Team Float Control

100.0%
Low Control
Mid Control
High Control
At launch, the team controls 100.0% of the circulating supply, reducing the real initial float to 0.00%.

Circulating Token Supply (YoY)

Vesting Release Schedule

Category Score
59.04out of 100
Percentile
Top 78%

Terms and Conditions Indicators

Highlights
1
Warnings
0
Alerts
0

Investor Round Details

Token Sale Terms and Vesting Details

This section reviews all investor fundraising rounds for Karura and the token purchase terms attached to KAR. It compares entry price, unlock structure, vesting length and if terms align with market standards.

Vesting Details

Hover to see the details.
Seed Round
Series A

Target Hardcap

$8.8M
29.1%
70.9%
Karura is selling 29.1% of its total token supply to investors in order to raise $8.8M in funding.

Category Score
99.92out of 100
Percentile
Top 28%

Break Even Indicators

Highlights
2
Warnings
1
Alerts
0

Break-Even Analysis

This section evaluates how fast investors recover their initial capital across Karura's private rounds. We track cumulative ROI from token unlocks, identify which rounds break even first or last, and pinpoint the month when ROI becomes positive to assess payback speed and round attractiveness.

Fastest Rounds to Break Even

1
Series A
in 8 months
2
Seed Round
in 13 months

Who Breaks Even First?

Series A
in 8 months

Who Breaks Even Last?

Seed Round
in 13 months

Break-Even Analysis Chart

Category Score
out of 100
Percentile

Conclusions Indicators

Highlights
1
Warnings
1
Alerts
0

Investor Round Ranking

This section ranks all investment rounds based on key investor metrics, including break-even speed, recovery at TGE, Fully Diluted Valuation (FDV), and Vested Diluted Valuation (VDV). Each round is scored and ordered from most to least favorable, showing which round offers the strongest conditions for investors in Karura.

Most Favorable Round

Seed Round
Best
Out of 2
1
Ranked 1st by TGE Recovery
1
Ranked 1st by FDV
1
Ranked 1st by VDV
2
Ranked 2nd by Vesting Speed

Least Favorable Round

Series A
Worst
Out of 2
1
Ranked 1st by TGE Recovery
1
Ranked 1st by Vesting Speed
2
Ranked 2nd by FDV
2
Ranked 2nd by VDV

Investor Round Ranking

KAR Tokenomics FAQ – Key Questions About Karura

What is the token allocation for KAR?

Karura token distribution allocates 160,000,000 KAR across 4 primary stakeholder groups:

  • Community: 49.25% (Auction Reward 34.00%, Reward Reserve 10.25%, Ecosystem Development 5.00%)
  • Investors: 29.13% (Seed Round 18.33%, Series A 10.80%)
  • Foundation: 11.62% (Treasury/Reserve 11.62%)
  • Insiders: 10.00% (Team 10.00%)

What is the vesting schedule for KAR?

KAR uses variable cliffs and vesting schedules that change depending on the allocation:

  • Auction Reward: 30.0% at TGE , 12 Month Linear Vesting
  • Seed Round: 12 Month Cliff, 24 Month Linear Vesting
  • Treasury/Reserve: No information
  • Series A: 36 Month Linear Vesting
  • Reward Reserve: 12 Month Linear Vesting
  • Team: 18 Month Cliff, 18 Month Linear Vesting
  • Ecosystem Development: 36 Month Linear Vesting

How many KAR tokens unlock at TGE?

10.2% of the total supply (16,320,000 KAR) is unlocked at TGE, with the entire unlock going to Community.

What is the total supply and circulating supply of KAR?

Karura has a total supply of 160,000,000 KAR, of which 141,407,994 KAR (88.4% of total) is currently circulating.

What is the token emission schedule for KAR?

Total length of the full Karura emission schedule is 4 years, with 46.24% released in Year 1, while the remaining 42.14% is released over the following 3 years.

What are the investor terms for KAR private and seed rounds?

Karura has 2 investor rounds, with the following investment price and vesting:

  • Seed Round: priced at $0.05, with 12 Month Cliff, 24 Month Linear Vesting
  • Series A: priced at $0.425, with 36 Month Linear Vesting

What percentage of KAR is allocated to the community?

49.3% of the Karura supply is allocated to community focused pools such as Auction Reward, Reward Reserve, and Ecosystem Development.

What is Karura (KAR)?

Karura is the decentralized financial (DeFi) hub of the Kusama network, designed as Acala's sister platform for enhanced cross-chain financial capabilities. As a top-tier parachain, Karura empowers developers and users with a fast, scalable, and user-friendly blockchain ecosystem tailored for Kusama and interoperable with Polkadot. Central to Karura’s operations is the $KAR token, a utility and governance token driving the ecosystem's functionality. The $KAR token plays an integral role in securing Karura’s parachain, facilitating governance decisions, and staking to ensure network reliability. It also underpins transaction fees and incentivizes liquidity provision in Karura’s decentralized applications. Karura enables users to interact seamlessly with groundbreaking DeFi services such as staking, token swapping, borrowing, and lending, all powered by its advanced, high-throughput parachain infrastructure. One of Karura’s flagship offerings is the Karura Dollar (kUSD), a decentralized, multi-collateralized stablecoin backed by cross-chain assets. This stablecoin ensures low volatility, allowing users to transact reliably across the Kusama and Polkadot ecosystems. Additionally, Karura’s advanced automation in financial trading, combined with reduced transaction costs, significantly enhances user efficiency and trading strategies. Karura’s tokenomics is built on sustainable economic mechanisms aimed at creating long-term value. The finite $KAR supply supports network scarcity, while staking mechanisms and transaction fees prevent token inflation. Users and developers benefit from fast transaction finality, interoperability with other parachains in the Polkadot ecosystem, and a robust framework for scaling decentralized applications (dApps). Perfectly positioned as a DeFi hub, Karura exemplifies how interoperability between blockchain networks can streamline and revolutionize digital finance. Karura's position as Kusama’s financial hub enhances its market appeal, making it a pivotal player within the Polkadot ecosystem. Through its advanced tokenomics, staking mechanisms, and innovations like kUSD, Karura is paving the way for a scalable and efficient multichain DeFi future.

This tokenomics data is maintained by Tokenomics.com and updated automatically from our analytics engine.

Page last updated: