7. Token Utility — Functional Role of $KTQ in the Network

The $KTQ token is the transaction and coordination asset that enables economic interaction between Operators, Machines, and Agent Developers. It is not a reward token; it is the medium that governs work, compensation, and participation.

The network relies on $KTQ to ensure that labor is executed, verified, and settled without trust in any party.

7.1 Task Payments

Operators use $KTQ to submit tasks to machines.

  • Each task is priced in $KTQ

  • Payment is held in escrow until execution is verified

  • Settlement occurs only after successful Proof-of-Motion

This makes $KTQ a work-denominated settlement currency.

7.2 Agent Licensing

Machines do not execute raw commands — they load Agent behavior modules.

To activate an Agent during execution, $KTQ is used to license that behavioral logic.

  • The Operator pays a fee in $KTQ

  • A portion is routed to the Agent Developer

  • A portion is routed to the protocol treasury

This creates sustainable incentive for AI motion logic development.

7.3 Machine Participation Bonding (Phase II)

To prevent sybil activity and unreliable machine participation:

  • Machines stake $KTQ to join the execution network

  • The bond is reduced if the machine repeatedly fails tasks

  • The bond increases as the machine maintains high performance

This ensures the network maintains reliable execution capacity.

7.4 Reputation-Weighted Execution Rewards

Machine performance affects earnings.

  • Higher precision → higher reward multipliers

  • Lower precision → reduced earnings and reduced task priority

$KTQ enables merit-based economic ranking of machines.

7.5 Governance Participation

Network parameters are governed by $KTQ holders, weighted not only by balance, but by contribution:

Influence Source
Weight

Token Holdings

Economic stake

Machine Execution Output

Productive contribution

Agent Usage Volume

Innovation contribution

Governance decides:

  • Fee ratios

  • Bonding requirements

  • Registry inclusion criteria

  • Expansion priorities (new machine onboarding)

This is governance based on proof of contribution, not capital dominance.

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