KGeN Launches Framework to Permanently Reduce Token Supply

Web3 data infrastructure company KGeN said June 5 that it has launched the “KGeN 2.0” framework, which permanently ties the company’s revenue growth to reductions in token supply. As part of the move, KGeN plans to burn about 22 million KGEN tokens, equivalent to roughly 10% of the current circulating supply.

At the core of KGeN 2.0 is a mechanism that automatically uses revenue generated from partnerships with artificial intelligence companies to reduce token supply. The company said the goal is to directly connect tangible business growth with gains in token value.

The first phase, called the “Genesis Burn,” will be carried out using a pool of ownerless tokens and will not require a separate cash outlay. The 22 million KGEN tokens to be burned come from unclaimed airdrop allocations and unsold node allocations.

The second phase is designed to link the token’s long-term value directly to business performance. To bolster the credibility of its revenue metrics, KGeN said it will disclose platform revenue on-chain after it has been audited by an independent third party. The company said this will allow investors to verify the figures in real time on the blockchain rather than rely on discretionary disclosures.

The token supply reduction mechanism will operate automatically. A portion of profit generated through AI lab partnerships will be used to buy KGEN tokens in the market and burn them immediately. The process will be executed through smart contracts within seconds of revenue recognition. KGeN said annualized recurring revenue from its AI segment will grow to $50 million by December 2027, and annual burn volume will rise to $10 million by the end of 2027.

KGeN co-founder Manish Agarwal said KGeN 2.0 is based on the belief that token value should reflect the creation of a real business. All revenue generated from the company’s AI segment will feed into a mechanism that permanently burns KGEN tokens in circulation, he added.