# KAP Games
{% hint style="success" %} **KAP Games** is a gaming publisher specializing in midcore web3 indie studios and supporting titles across PC, mobile, browser, and more. {% endhint %} KAP Games operates three key pillars: * **Publishing****.** We **connect games to massive audiences** via our aggregated go-to-market providers and our comprehensive [Web3 SDK](/technology/web3-sdk) game backend tooling, enabling games to accelerate their launches and secure competitive grants. * robust community ecosystem initiatives, and providing them access to our and portfolio of partners at steep discounts to ensure indie studios hit the ground running. * **Studio**. We build **highly social midcore games** that leverage digital ownership and community-driven design to put the power in the hands of the players. You can play our major award-winning title, [*Captain & Company*](https://capnco.gg/)*,* on PC, mobile, or browser. * **Distribution**. Our **cross-platform distribution suite** leverages industry-first questing & marketplace aggregation tools combined with social jackpot events, partner [staking rewards](/token/staking), and easy-to-use email-based wallets to get players into high quality-games fast.
Play Now
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Publish Your Game
# Tokenomics ## Utility The $KAP token has proven utility, actively being utilized across thousands of wallets in gaming environments across web3. As a publisher token, $KAP occupies a privileged position at the top of the gaming food chain, enabling holders to benefit from a plethora of opportunities from partnered portfolio and internal studio games. The $KAP token is used for: 1. **Burning** to create nodes for certain games in our portfolio during certain time periods, where those nodes produce supply of the game's token. [Learn more here](/technology/nodes). 2. **Staking** to earn partner tokens and points rewards, as well as in-game bonuses for certain games across our portfolio. [Stake here](https://kap.gg/staking). 3. **Purchasing** in-game assets and making discounted payments in certain games across our portfolio. 4. **Voting** on platform referendums and social governance features that affect certain classes of tokenholders. [Vote here](https://vote.kap.gg/). In essence, the $KAP token may allow you to acquire more tokens from other affiliated portfolio games via node creation, staking rewards, and voting incentives. ## Supply & Distribution The $KAP token is **deflationary**, with only 1,000,000,000 initially minted, and a supply that will decrease over time as the tokens are burned to create nodes for games within our publishing portfolio. The token generation event date was October 5, 2022. The initial token distribution at time of mint was:
Category%Unlock Terms
Public Liquidity5.00%No lock terms
Contributors & Investors35.23%12 month cliff, 12 month unlock
Advisors0.42%12 month cliff, 12 month unlock
Reward Incentives10.00%48 month unlock
Ecosystem 49.35%48 month unlock
{% hint style="danger" %} The KAP token has not been offered as a security, and contributors should have zero expectation of profit, irrespective of the plans and ideations outlined in this conceptual paper. Furthermore, public claim functions and liquidity pools are not be available to any participant with a US, Cuba, Iran, North Korea, or Syria IP address. See [Disclaimer](/appendix/disclaimers-and-disclosures) for more info. {% endhint %} # Staking {% hint style="info" %} Stake now at [kap.gg/staking](https://kap.gg/staking). {% endhint %} The $KAP token can be staked in the [staking portal](https://kap.gg/staking) to **simultaneously earn multiple rewards** across partnered games and ecosystems. Rewards are distributed pro rata to stakers according to how many staking points they currently have. Rewards have historically included any mix of the below: | Reward | Example | | -------------- | --------------------------------------------------------------------------------- | | Gaming Tokens | $CNC, $KAP | | Airdrop Points | Blast Gold, Blast Points, Thruster Points, Hyperlock Points, Captain & Company AP | | In-Game Points | Captain & Company Doubloons, Captain & Company mBLAST | | NFTs | Captain & Company Resources | ### Multipliers Different staking pools grant different staking points multipliers, with dual-sided LP pools granting the highest multipliers. | Pool | Chain | Multiplier | | --------- | ----- | ---------- | | ETH | Blast | 1.43x | | USDB | Blast | 3.44x | | KAP-ETH | Blast | 15.73x | | KAP-BLAST | Blast | 15.73x | {% hint style="info" %} These multipliers are calculated relative to the current native yield of ETH and USDB. These rates are floating and update periodically. The rates shown here are indicative, and you should confirm the prevailing multiplier rates on the staking portal before depositing. {% endhint %} ### Active vs Passive Rewards Certain rewards in the [staking portal](https://kap.gg/staking) may require you to participate in some type of activity at certain intervals to be eligible to receive them. For example, a certain game token may require that you log in once per week in order to be eligible for that week's staking rewards. These *active staking* conditions are noted in the [staking portal](https://kap.gg/staking) on the relevant reward lines when in play. {% hint style="warning" %} Users from the US and OFAC-sanctioned territories are prohibited from access the staking portal. {% endhint %} # Web3 SDK {% hint style="info" %} Get the omnibus web3 SDK at [build.kap.gg](https://build.kap.gg/). {% endhint %} The [KAP Web3 SDK](https://build.kap.gg/) was created in partnership with [Sequence](https://sequence.xyz/), the leading provider of web3 gaming development tools. Our SDK enables game developers at all stages of development to accelerate their build time via **email-based wallets**, simplified **web3 APIs**, improved **analytics**, whitelabel **marketplaces**, and fully compliant **payment rails** with minimal friction. Features included in the full SDK are: | Feature | Description | | ------------ | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | | User Wallets | Non-custodial, smart contract wallet that can be deployed on any EVM chain. Offers social authentication and email login options for a traditional onboarding experience. | | Marketplace | List collections on any EVM chain and allows for in-game marketplace behavior and monetization. Can be deployed with your own frontend or with a default no-code frontend. | | Web3 API | Easily dispatch transactions across any compatible EVM chain Leverages gas abstraction (paying gas for users), batching transactions, and automatic gas optimization. | | Indexer | Live querying capabilities across compatible EVM chains (e.g. fetch wallets, held NFTs, metadata informatation, token history & more). | | Node Gateway | A fleet of nodes ensures that transactions are submitted to a redundant array for substantially reduced failure rates. | | In-Game SDKs | Unity, Unreal, React, Go, and TypeScript are supported by default, with additional platforms potentially supported soon. | # Nodes ## Game Nodes Certain games in the KAP Games studio or publishing portfolio may periodically release proof of work (PoW) nodes, which will each generate the total token supply for their associated game(s). These nodes differ from many in the existing web3 ecosystem in that they will issue **100% of their token supply** to node holders. These nodes will not be preceded by a "premine," and all participants will enter on similar footing. This adheres to our strict philosophy around building user-owned economies, which itself is an extension of the original Bitcoin philosophy. ### Discounts for $KAP Holders When one of our eligible games hosts a node sale, $KAP holders will qualify for discounts when they use $KAP to make their purchase, allowing loyal holders to achieve earlier entry points than outsiders. As the nodes in our ecosystem are unique in that they encompass 100% of the fully diluted token supply, we prioritize our existing ecosystem participants with discounts and whitelists. **$KAP used to purchase nodes is burnt**, thus further reducing the circulating $KAP token supply. {% hint style="info" %} Node sales, tokens, and their associated technologies are hosted and owned by the Kapital Foundation, a counterparty of KAP Games. The Kapital Foundation partners with [Nodeops.xyz](https://nodeops.xyz/) to ensure our non-technical users can easily run our nodes. {% endhint %} # Guilds SDK {% hint style="info" %} Coming soon! {% endhint %} # Creators {% hint style="info" %} Join the KAP Creator Program [here](https://forms.gle/86yad6RC3nnj7HnFA). {% endhint %} The [KAP Games Creator Program](https://forms.gle/86yad6RC3nnj7HnFA) enables creators to get rapid access to new early access opportunities, paid campaigns, support networks and more. Our roster of creators spans both traditional gaming and web3 gaming, and prioritizes honest reviewing & technical breakdowns. Creators who join the program potentially gain any of: * **Cash and token deals** for disclosed sponsorships and campaigns * Access to **pre-launch games** & tests / footage * Exclusive NFT rewards and **in-game assets** * Exposure & **creator highlights** from the main KAP Games accounts Whether you're a hobbyist creator or a professional partnered streamer with thousands of viewers, we help connect you to exciting new games looking for early feedback, go-to-market launch strategies, or complex live ops campaigns. # Grants {% hint style="info" %} Complete the [application here](https://forms.gle/42vcKeZXbg83TJzS9) to apply for a grant. {% endhint %} KAP Games provides access to extensive ecosystem[ grant programs](https://forms.gle/42vcKeZXbg83TJzS9) in partnership with the majority of key leading blockchains. KAP Games grants are administered by the Kapital Foundation on behalf of the $KAP ecosystem, and are **up to $250k** notional in size. Qualifying for a KAP Games grant can uniquely also qualify a game to receive a matching grant from one of our affiliated chain partners, **doubling the size of the grant**. We work closely with blockchain foundations to foster strong gaming communities in their ecosystems via our matching grant program. Grants are awarded to games who commit to publishing inside of KAP Games' portfolio. Importantly, you can still make your own chain choice, and **we do not lock you to our own chain** -- we are not a chain, we are a multichain publisher. Milestones for grants generally are tied to any combination of: * Marketplace transaction volume * In-app purchase volume * Marketing volume * New user signups Grant milestones are specific per game and tailored to meet the mutual objectives of the Kapital Foundation's grant committee and the game itself. # Hackathon {% hint style="info" %} Coming soon! {% endhint %} # Smart Contracts {% hint style="info" %} Contracts will be added to this page as they are deployed. {% endhint %}
Contract NameContract Address
KAP Token (Ethereum)0x9625cE7753ace1fa1865A47aAe2c5C2Ce4418569
KAP Token (Abstract)0x7d597148d32738CfFA4d3D503437bFf7e6EB38b2
KAP Token (Blast)0x15d24de366F69b835Be19f7Cf9447e770315DD80
KAP Token (Polygon) 0xc27158bb8e08899d38765752f91d7d778e16ab8e
KAP Token (Arbitrum)0x965d00aA7ABC62CA10132e641D08593435aC811d
KAP Vesting0xF4ff2F51d721Cc62201D81dab4B5EEcB3d692a99
KAP Staking0xccde05524864009a3976acacd32f6728f08a7b4a
KAP Rewards Locker0xcb0460f5206ed006e6f2d012638027a255864f17
KAP Governance Registry0x02242A0A909F97bE3D727ab189f19B1961D76BE2
KAP ERC20 Staking (Blast)0x3ec37cd6a04d23a446c6073b2fac4b7d1d845c26
https://www.kap.gg/old_staking
KAP ETH Staking (Blast)0x168fd709e0bbd37cca0b99e48be0f2adb4df7bdc
KAP Points Operator (Blast)0x7576404E0e443c9093C0E2C449c3939813c1BC3F
Uniswap v2 Pool (KAP/ETH)0x9625ce7753ace1fa1865a47aae2c5c2ce4418569
# Audits {% hint style="success" %} We retain top security firms for active pen testing, auditing, and persistent threat analytics. View engineer commentary on audits [here](https://help.kapital.gg/heimdall/security). {% endhint %} * [Halborn - Smart Contract Audit](https://github.com/HalbornSecurity/PublicReports/blob/master/Solidity%20Smart%20Contract%20Audits/PlayGround_Labs_Kapital_DAO_Smart_Contract_Security_Audit_Report_Halborn_Final.pdf) * [Ackee - Smart Contract Audit](https://github.com/kapital-dao/kapital-dao/blob/main/audits/ackee_audit_2022_12.pdf) * [Halborn - (Heimdall Wallet) Self-Custody Node Audit](https://2699358043-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FksS4X2iKyZMAef0efu5b%2Fuploads%2FFiCFE0OaOeMoyLLI3bmK%2FSelf%20Custody%20Node%20Audit%20-%20Dec%202022.pdf?alt=media\&token=dd67a2f8-5326-4aef-8663-e5d5068d7e86) * [Halborn - (Heimdall Wallet) Guild Service Browser Extension Audit](https://2699358043-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FksS4X2iKyZMAef0efu5b%2Fuploads%2Fg6mNjuDBV5vxRLVPe8Dr%2FKapital%20Guild%20Service%20Browser%20Extension%20Audit%20-%20Dec%202022.pdf?alt=media\&token=e6f8cc97-3a65-4f64-9ce1-5227fc8ef8c1) # Bug Bounties {% hint style="success" %} We take security extremely seriously, and reward whitehat bug finders with rewards based in some combination of KAP or USDC as outlined below. Our smart contracts are based off of OpenZeppelin primitives with our own unique twist, and audited by both Halborn and Ackee. Our full-stack web apps are undergoing continuous pentesting by two different cybersecurity firms. {% endhint %} We rank bugs according to the [CVSS scoring system](https://www.first.org/cvss/calculator/3.0). If you find a bug, you should immediately contact the moderators on Discord, who will direct you to the appropriate parties. We pay out bug hunter based on the severity of the bug, with the following payout schedule: * (0.1 - 1.0) Informational: Up to $250 * (1.1 - 3.9) Low Risk: Up to $750 * (4.0 - 6.9) Medium Risk: Up to $2,500 * (7.0 - 8.9) High Risk: Up to $5,000 * (9.0 - 10.0) Critical: Either up to $25,000 or 2.5% of the funds at risk of permanent loss Payouts may be made either in USDC or in an equivalent amount of native KAP tokens, depending on treasury conditions at the time, and assuming that the individual who provided the information on the bug also assists in its resolution. {% hint style="info" %} Contact us at to place a bug report. {% endhint %} # Team {% hint style="success" %} The core contributors have collectively worked across names like Goldman Sachs, Citi Bank, MIT, MIT Lincoln Lab, Microsoft, Techstars, Columbia University, and Harvard Business school, among others. The KAP Games team is fully doxxed. View them on LinkedIn [here](https://www.linkedin.com/company/kapgamesgg). {% endhint %} ### Investors {% hint style="info" %} KAP Games' investors include almost every major gaming-focused blockchain, as well as key industry partners like Yield Guild Games and major web3 games, in addition to core strategics. {% endhint %}
# Disclaimers & Disclosures By engaging with KAP Games or affiliated entities, you acknowledge that you have read and understood the below disclaimers. Please review the terms carefully. ## Disclaimers The information set forth in the White Paper or these Legal Notices (“Legal Notices”) may not be exhaustive and should not be construed to create a contract between you and the DAO of KAP Games, which is legally represented by Guild Ventures I Ltd., a wholly owned subsidiary of the Kapital Foundation (the "DAO"). While we make every reasonable effort to ensure that all information: (i) in the White Paper; (ii) available on the DAO website , (iii) available on its Twitter account (@KAPGamesGG), (iv) its Discord Channel, or (v) any other available information moderated by the DAO (collectively, the “Sites”) (all the information in the White Paper and all information available on the Sites hereinafter referred to as the “Current Information”) is accurate and up to date, such material in no way constitutes professional advice. Individuals intending to purchase the KAP token (each a “Token Purchase”) should seek independent professional advice prior to acting on any of the Current Information. #### NO REPRESENTATION & WARRANTIES Notwithstanding any other provision of these Legal Notices or any statement made expressly or impliedly in the Current Information, the DAO does not make or purport to make, and hereby disclaims, any representation warranty undertaking or covenant in any form whatsoever to any entity or person, including any representation warranty undertaking or covenant in relation to the truth, accuracy and completeness of any of the information set out in the Current Information. #### REPRESENTATION & WARRANTIES BY YOU By accessing the Current Information or engaging in a Token Purchase, you represent and warrant to the DAO: * you are over 18 (eighteen) years of age; * you agree, accept, and acknowledge that the Tokens do not constitute shares or equities or securities or financial instruments or investments in any form in any jurisdiction for any purpose; * you agree and acknowledge that the Current Information does not constitute a prospectus or offer document of any sort and is not intended to constitute an offer of securities in any jurisdiction or a solicitation for investment in securities; * you agree and acknowledge that no regulatory authority has examined or approved of the Current Information, and presently there is no plan for the Current Information to be so reviewed; * the distribution or dissemination of the Current Information any part thereof or any copy thereof, or acceptance of the same by you, is not prohibited or restricted by the applicable laws, regulations or rules in your jurisdiction, and where any restrictions in relation to possession are applicable, you have observed and complied with all such restrictions at your own expense and without liability to the DAO; * you will not make any representation to any person regarding the Tokens that conflict with these Legal Notices; * you agree and acknowledge that in the case where you wish to purchase any Tokens, the Tokens are not to be construed, interpreted, classified or treated as: * debentures, stocks or shares issued by any person or entity (whether the DAO or otherwise); * rights, options or derivatives in respect of such debentures, stocks or shares; * rights under a contract for differences or under any other contract the purpose or pretended purpose of which is to secure a profit or avoid a loss; * units in a collective investment scheme; * units in a business trust; * derivatives of units in a business trust; * any other security or class of securities; or * any type of investment * you are fully aware of and understand that you are not eligible to purchase any Tokens or access the Current Information if you are a citizen, national, resident (tax or otherwise) of an internationally sanctioned country. * you have a basic degree of understanding of the operation, functionality, usage, storage, transmission mechanisms and other material characteristics of cryptocurrencies, blockchain-based software systems, cryptocurrency wallets or other related token storage mechanisms, blockchain technology and smart contract technology; * you are fully aware and understand, there are risks associated with: (A) the DAO and its business and operations; (B) the Tokens; (C) the Token Purchase; (D) storage of the Tokens, and (E) relying or acting on all or any part of the Current Information; * you agree and acknowledge that the DAO is not liable for any direct, indirect, special, incidental, consequential, or other losses of any kind in tort contract or otherwise (including but not limited to loss of revenue income or profits or loss of use or data or loss of reputation or loss of any economic or other opportunity of whatsoever nature or howsoever arising) arising out of or in connection with any acceptance of or reliance on the Current Information, Token Purchase, or any part thereof by you; and * all of the above representations and warranties are true, complete, accurate and not misleading from the time of your last access to and/or possession of (as the case may be) the Current Information. RESTRICTED PARTICIPATION Participating as a tokenholder or as a contributor in the initial Balancer Pool event of the DAO is expressly forbidden for individuals who are citizens or residents of the United States of America. IP geoblocking will be instituted across the token pool interfaces as well as any component of any app offered by the DAO that permits users to claim or earn KAP tokens. CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS All statements contained in the Current Information, statements made in any press releases or in any place accessible by the public and oral statements that may be made by the DAO or DAO representatives (as the case may be), that are not statements of historical fact, constitute “forward looking statements”. Some of these statements can be identified by forward-looking terms such as “aim”, “target”, “anticipate”, “believe”, “could”, “estimate”, “expect”, “if”, “intend”, “may”, “plan”, “possible”, “probable”, “project”, “should”, “would”, “will” or other similar terms. However, these terms are not the exclusive means of identifying forward-looking statements. All statements regarding the DAO's financial position, business strategies, plans and prospects and the future prospects of the industry which the DAO is in are forward-looking statements. These forward-looking statements, including but not limited to statements as to KAP Games' revenue profitability and growth, expected revenue profitability and growth, prospects, future plans, network plans, other expected industry trends and other matters discussed in the Current Information regarding the DAO are matters that are not historic facts, but only estimations and predictions. The DAO makes no representation or warranty on having made any predictions or estimates or expectations on the basis of any formula, any mathematical or scientific modelling or forecast, or having made any due and proper enquiries or having undertaken any independent research or studies or otherwise. These forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual future results, performance or achievements of KAP Games to be materially different from any future results, performance or achievements expected, expressed or implied by such forward-looking statements. These factors include, amongst others: * changes in legal, political, social, economic, and stock or cryptocurrency market conditions and the regulatory environment in the countries in which the DAO conducts its business and/or its operations or where you engage in a Token Purchase; * the risk that the DAO may be unable or execute or implement its business strategies and future plans; * changes in interest rates and exchange rates of fiat currencies and cryptocurrencies; * changes in the anticipated growth strategies and expected internal growth of the DAO; * changes in the availability and fees payable to the DAO in connection with its business and operations; * changes in the availability and salaries of employees who are required by the DAO to operate its business and operations; * changes in preferences of customers of the DAO; * changes in competitive conditions under which the DAO operates, and the ability of the DAO to compete under such conditions; * changes in the future capital needs of the DAO and the availability of financing and capital to fund such needs; * war or acts of international or domestic terrorism; * occurrences of catastrophic events, natural disasters and acts of God that affect the businesses and/or operations of the DAO; * other factors beyond the control of the DAO; and * any risk and uncertainties associated with the DAO and its business and operations, the Tokens, the Token Purchase and reliance on all or any part of the Current Information. All forward-looking statements made by or attributable to the DAO or DAO representatives are expressly qualified in their entirety by such factors. Given that risks and uncertainties that may cause the actual future results, performance or achievements of the DAO to be materially different from that expected, expressed or implied by the forward-looking statements in the Current Information, undue reliance must not be placed on these statements. These forward-looking statements are applicable only as of the later of the date of publication of the White Paper and the latest date that the Sites have been updated. Neither the DAO nor DAO representatives nor any other person represents, warrants and/or undertakes that the actual future results, performance or achievements of the DAO will be as discussed in those forward-looking statements. The actual results, performance or achievements of the DAO may differ materially from those anticipated in these forward-looking statements. Nothing contained in the Current Information is or may be relied upon as a promise, representation or undertaking as to the future performance or policies of the DAO. Further, the DAO disclaims any responsibility to update any of those forward-looking statements or publicly announce any revisions to those forward-looking statements to reflect future developments, events or circumstances, even if new information becomes available or other events occur in the future. ### Risk Factors This section on risk factors is not and does not purport to be a complete enumeration or explanation of the risks involved with the purchase of KAP tokens. There may be additional risks of which the DAO is not aware. The following therefore highlights certain risks to which the DAO is subject to and which the DAO wishes to encourage prospective purchasers of KAP tokens to discuss with their own professional advisors. * **Risk of software weaknesses.** The DAO's platforms and the underlying technologies are still in an early development stage and unproven. There is no warranty that the process for creating the the DAO's platforms will be uninterrupted or error-free and there is an inherent risk that the software could contain weaknesses, vulnerabilities or bugs causing, inter alia, the complete loss of the Tokens. * **Regulatory risk.** Blockchain technology allows new forms of interaction, and it is possible that certain jurisdictions will apply existing regulations on, or introduce new securities law, tax or other laws or regulations addressing, blockchain technology-based applications and/or the issuance and sale of tokens, which may, inter alia, result in substantial modifications to the sale of KAP tokens and/ or any of the DAO's platforms, including its termination and the loss of all KAP tokens. * **Government action.** Because of the regulatory uncertainty described above, blockchain activities, including the activities of the DAO, may be subject to heightened oversight and scrutiny, including investigations or enforcement actions. All of this could subject the DAO to judgments, settlements, fines or penalties or require or cause the DAO to restructure its operations and activities, to cease offering certain products or services in one or more jurisdictions or refrain from delivering the KAP tokens to certain persons or in certain jurisdictions. * **Risk of abandonment/lack of success.** The creation of the KAP tokens and the development of the DAO platforms may be abandoned for a number of reasons, including lack of interest from the public, lack of funding, lack of commercial success or prospects (e.g. caused by competing projects). Also, even if the DAO platforms are partially or fully developed and launched, there is no assurance for its future users to use and access the DAO platforms as anticipated. * **Risk associated with other applications.** It is possible that alternative platforms and businesses could be established that utilize the same open source code and protocol underlying certain components of the DAO platforms. The DAO platforms may compete with these alternative platforms and businesses, which could negatively impact the adoption of the DAO platforms and the KAP tokens. In addition, the DAO platforms may give rise to other, alternative projects, promoted by unaffiliated third parties, under which the KAP tokens will have reduced, or potentially no, intrinsic value. There is a risk that the DAO or its members, or other third parties may intentionally or unintentionally introduce weaknesses or bugs into the core infrastructural elements of the DAO platforms interfering with the use of, or causing the loss of, the KAP tokens. * **Risk of theft.** The smart contracts used to generate the Tokens and the underlying software applications may be exposed to attacks by hackers or other individuals including, but not limited to, malware attacks, denial of service attacks, consensus-based attacks, Sybil attacks, smurfing and spoofing. Any such successful attacks could result in theft or loss of payments made to the DAO and/or the KAP tokens, adversely impacting the ability to use or develop the DAO platforms and derive any usage or functionality from the KAP tokens. * **Development Risk.** The timing for issuing the KAP tokens and for completing various steps in the implementation of the DAO platforms are set forth in this Whitepaper. However, there is no assurance that the DAO will meet those target dates. The KAP platform operationality may be limited at the time of the KAP tokens delivery date and not all of the anticipated operational features intended for the DAO platforms may be functioning at that time. The DAO platforms will still be subject to ongoing development and could undergo significant changes over time. In addition, because the development of the DAO platforms may be dependent upon third parties, the Company may have limited control over future KAP tokens functionality or in assuring the ongoing operation and performance of the DAO platforms. * **No Liquidity.** KAP tokens are not intended for investment purposes. KAP tokenholders may not be able to sell, transfer or trade its unused KAP tokens to any other party. KAP tokens are intended to be used only in connection with the DAO paltforms. There may never be a secondary market for the KAP tokens. KAP tokens may be subject to significant transfer restrictions as a result of actions taken by the DAO or by government regulators. * **Early Stage Entities.** The DAO is a start-up and has no operating history against which purchasers of the KAP tokens may consider the appropriateness of purchasing the KAP tokens. Many risks and uncertainties affect start-up and early-stage entities, which often have very limited operating history, profits or cash flow. There can be no assurance of the success of such enterprises. Their potential must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with new or developing businesses, including technology risks, unproven business models, untested plans, uncertain market acceptance, competition and lack of revenues and financing. ## Disclosures ### i. Financial Information As a transparent and decentralized autonomous organization, the DAO maintains an open statement of accounts tracked by [TokenTerminal](https://tokenterminal.com/terminal/projects/kapitaldao). You may view account balances and treasury health [here](https://tokenterminal.com/terminal/projects/kapitaldao). These balances can be easily audited by any ordinary practitioner on-chain, but, for ease of validation, the DAO's treasury multi-sig is stored at [0xbc450C9EcED158c6bD1AFfA8D37153E278e63e68](https://etherscan.io/address/0xbc450C9EcED158c6bD1AFfA8D37153E278e63e68) and its operating income multi-sig is stored at [0xFA3Df5C014BBd5a6a6D1047b82331917c3f9bB9d](https://etherscan.io/address/0xFA3Df5C014BBd5a6a6D1047b82331917c3f9bB9d). ### ii. Token Creator Information The [KAP Token](https://etherscan.io/token/0x9625ce7753ace1fa1865a47aae2c5c2ce4418569) was deployed by the Kapital Foundation, a compliant Cayman Islands-based ownerless foundation. The Kapital Foundation owns and directs Guild Ventures I Ltd, which is the operating vehicle responsible for housing all related software IP, contractual agreements, and employees that contribute to supporting the KAP ecosystem. ### iii. Governance The DAO utilizes a combination of on-chain governance and off-chain governance. The KAP Token enables tokenholders to directly execute transactions against certain DAO-controlled [smart contracts](/documentation/smart-contracts) (i.e. "on-chain governance"). These contracts are fully disclosed and publicly audited at the addresses listed in this document, [here](/documentation/smart-contracts). While tokenholders cannot directly control the multi-sig that contains operational treasury resources (i.e. "off-chain governance"), tokenholders can control an on-chain treasury which may be sent various tokens or currencies by action of any member of the distributed community. KAP Tokenholders may participate in nominating and electing Governance Councilmembers who interface with the Kapital Foundation to ratify and advise on off-chain governance decisions. These elections are carried out via Snapshot. ### iv. Security The KAP Token, its governance contracts, and its associated operational contracts have been audited by multiple parties and are under bug bounty programs, as outlined in the section of this document entitled "[Audits](/documentation/audits)." ### v. Tokenomics The KAP Token is a fixed-supply token (1,000,000,000 maximum fixed supply) with 100% of that supply minted at launch, and locked across various operational and vesting wallets. The full circulating supply data is disclosed in the section of this document entitled "[KAP Token](/token/tokenomics)." ### vi. Consumptive Use/Utility All fees inside of the KAP ecosystem can be paid for using the KAP Token, and many must be paid for exclusively in the KAP Token. The primary utility of the KAP Token is to engage with such products and services as the distributed developers of the KAP ecosystem deploy.