---
# System prepended metadata

title: King Protocol Factsheet

---

# King Protocol Factsheet
Last Updated: January 23, 2025


### Overview 

* King Protocol simplifies the process of receiving LRTs for users.
* There are two relevant tokens: **KING** and **QUEEN**. 
* King Protocol has partner protocols: LRT providers who are approved through governance 
* There is an entity called QueenDAO that makes governance decisions surrounding **KING**

### King Token 
* **KING** Tokens are created by a *pro rata* minting process where allowed tokens are exchanged for **KING**. 
* Minting **KING** produces *seignorage* revenue for QueenDAO. For every 1.0 **KING** token that is minted, there is $p = 0.05$ KING tokens sent to QueenDAO.  
* Only approved entities (e.g. partner protocols) can mint **KING**.
* Initially, the partner protocols are determined via offchain agreements. Later, they will be approved by QueenDAO governance proposals. 
* Minting of **KING** is limited. For a given epoch, the minting rates for **KING** are determined by QueenDAO governance. 
* As part of this process, **KING** uses price oracles to determine the value of the collateral provided. 
* **KING** tokens can be redeemed by burning the **KING** token, which enable the user to claim the percentage of the token's underlying collateral.
* There will be portfolio management decisions, determined by QueenDAO. 
* To adjust the portfolio holdings, partners will be incentivized to provide tokens where the allocation should be increased. 


### Queen Token

* **QUEEN** Token has a finite supply, created through a one-time Token Generation Event (TGE)
* A portion of this allocation will be reserved for partner protocols 
* The portion reserved for partner protocols will be streamed each epoch, using an allocation mechanism. 
* The allocation mechanism is an objective function using onchain data as input.
* Desired property of the allocation mechanism: reward protocol performance during the epoch, i.e. doing things that help King Protocol should result in greater proportion of allocation
* Desired property of the allocation mechanism: there should be something of a normalizing "whale resistance" effect
* The allocation mechanism consists of 1.) assigning a *partner grade* using an objective formula, 2.) calculating *expected value* using another formula, 3.) combining these numbers in another formula to produce the final results
* Partner grades depend on the following factors: Liquidity, Velocity, Integration, Lindy
* Expected Value depends on the following factors: (currently none known)
* The parameters of the allocation mechanism can be changed through governance in QueenDAO.

