Kaia to burn 4.9 million unpaid reward tokens; JPYC added to contribution reward program

The Kaia DLT Foundation will begin burning unpaid network contribution rewards starting Oct. 21, with about 4.9 million KAIA tokens confirmed for destruction across two rounds. The yen-pegged stablecoin JPYC will also be added as an eligible asset under the contribution reward program.

According to the foundation, 2,463,579 KAIA in unpaid rewards will be burned on-chain on Oct. 21. The tokens represent rewards that went unclaimed during the first settlement period, which ran from July 23 to Aug. 22. Kaia moved up the burn, which had originally been scheduled for November.

A second burn is planned for November, covering 2,441,567 KAIA in unpaid rewards from the second settlement period, Aug. 22 to Sept. 21. The total amount confirmed for burning across both rounds is 4,905,146 KAIA.

The burns stem from Kaia's contribution reward (CR) system, introduced in July. Under the previous arrangement, 10 percent of block rewards were distributed equally among Governance Council participants. The revamped system allocates rewards based on each participant's actual contribution to the network.

The monthly reward budget is set at 2.5 million KAIA. Any portion that goes undistributed because recipients fail to meet eligibility requirements is burned rather than retained by the foundation — a measure designed to prevent unissued tokens from entering circulation.

Kaia said it plans to confirm and burn unpaid reward amounts at the close of every settlement cycle going forward. Burn details and cumulative totals will be disclosed through monthly operational reports on the governance forum.

In addition, Kaia will add JPYC, a yen-pegged stablecoin, to the list of assets eligible for contribution rewards starting Oct. 21. Previously, only Tether (USDT) qualified; users who deposit JPYC will now also be able to earn contribution rewards if they meet the relevant requirements.

To qualify for contribution rewards, users must deposit a stablecoin into a designated protocol while simultaneously staking KAIA in the same wallet. For every $1 worth of stablecoin deposited, users must stake 10 KAIA alongside it.

The same criteria apply to JPYC. The dollar value of JPYC deposited in a Unifi wallet will be calculated using the average exchange rate from on-chain oracle Orakl, and the required KAIA staking amount will be determined accordingly. However, JPYC deposited before Oct. 21 will not be eligible retroactively.

JPYC is a yen-pegged stablecoin issued as an electronic payment instrument under Japan's Payment Services Act. Kaia said it plans to use the addition of JPYC as a starting point to attract stablecoins from across Asia onto its network, with the goal of expanding their use in payments and settlement.

Seo Sang-min, chairman of the Kaia DLT Foundation, said the contribution reward system is "designed so that rewards go to participants who actually contribute to the network, and unused rewards do not flow into the market." He added that the foundation aims to "expand an ecosystem where stablecoins from across Asia — including Japan's JPYC — are used on Kaia and their contributions are fairly rewarded."

Meanwhile, Kaia recently signed an MOU with Kosdaq-listed The Dozen to jointly build a cross-border settlement infrastructure based on Asian local stablecoins.