Concepts & Terminologies

Base Price: The KNOWLEDGE ecosystem consistently maintains a baseline, below which the price of the KNOWLEDGE token will not decline. If the price falls below this threshold, the protocol will activate critical stage mechanisms to boost the KNOWLEDGE token's value. This reinforces the notion that the price of the KNOWLEDGE token is continually rising. The base price goes up each year and is influenced by factors such as:

• Rate of increment of total supply of KNOWLEDGE Token,

• Burning Rate of KNOWLEDGE Token,

• Price Stability of KNOWLEDGE Token over the year,

• Market Capitalization of the KNOWLEDGE Token, etc.

Inflationary Movement: The purpose of the Inflationary mechanism is to bring back the price of KNOWLEDGE token in the event it falls below the base price. This process unfolds in three stages.

• Balancing the price by transferring surplus funds to the treasury.

• Recollateralization: Community members can offer collateral directly to the treasury, gaining governing rights and rewards.

• Exchanging KNOWLEDGE tokens for KNB tokens, granting governing rights to community members.

Deflationary Movement: The Deflationary Mechanism empowers the community to reduce the price of the KNOWLEDGE token in the event of a significant price increase, making the token more affordable and accessible for minting. The initiation of the deflationary movement is subject to governance approval and unfolds in three steps:

• Swapping KNB tokens for KNOWLEDGE tokens, taking away some governing rights to acquire free KNOWLEDGE tokens for distribution within the community.

• Restoring balance in price by transferring funds from the treasury to the surplus.

FORK(Fractional Ownership and Rights to Knowledge): A distributed authoring and versioning of knowledge using blockchain technology.