KGeN Releases Tokenomics Report on Market Metrics, Revenue Model

Doohyun Hwang

Summary

KGeN said it released a tokenomics report analyzing market metrics and its revenue model following its token issuance.
According to the report, KGeN’s annual recurring revenue (ARR) was about $85.8 million, while its fully diluted valuation (FDV) was about $165 million, or roughly twice its revenue.
The report said the reward structure built around the non-transferable token rKGEN carries circulating supply risks, as a market price decline could simultaneously reduce reward value and increase token supply.

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KGeN, a Web3 data infrastructure project, released a report on May 4 analyzing market metrics and its revenue model following its token issuance.

The report put KGeN’s annual recurring revenue, or ARR, at about $85.8 million. Its fully diluted valuation, or FDV, was about $165 million, roughly twice ARR.

KGeN said its infrastructure operates in more than 60 countries and is supported by about 61.9 million users globally. The core system converts user activity data into on-chain identity and reputation information. That data is accumulated through a Proof of Gamified Engagement, or POGE, model. The project is also exploring ways to use the verified user data to train artificial intelligence models.

The report also detailed the mechanics and limits of KGeN’s token reward structure. The project currently pays rewards first in rKGEN, a non-transferable token, before allowing conversion into a liquid token.

Under that structure, a decline in the market price could reduce the value of rewards while simultaneously increasing token supply, the report said, outlining potential risks tied to the circulating supply structure.

KGEN