Knightswap Knightswap tokenomics
KNIGHT is KnightSwap's BEP-20 token on BNB Smart Chain. Its published design has no maximum supply: emissions can add tokens, while completed burns reduce the unburned supply. Dilution depends on the balance between those flows, so a larger reward balance doesn't necessarily mean a larger share of supply.
- BNB Smart Chain token contract
-
0xD23811058Eb6e7967D9a00dc3886E75610c4AbBa
The 2021 launch allocation
KnightSwap documented an initial allocation of 4 000 000 KNIGHT. Its Initial Wizard Offering (IWO) took place on November 2, 2021.
| Allocation | KNIGHT tokens |
|---|---|
| Starting liquidity | 1 500 000 |
| Ecosystem incentives | 500 000 |
| Initial Wizard Offering | 2 000 000 |
The IWO's stated price was $0.25 per KNIGHT, with a reported raise of 500 000 BUSD. The initial allocation describes the launch distribution; it doesn't impose a ceiling on later minting.
How emissions are divided among farms and pools
The $KNIGHT Token guide lists an aggregate emission rate of 7.5 KNIGHT per block. It gives an approximate distribution:
- Farms: 75% of emissions, or 5.625 KNIGHT per block under that split.
- The KNIGHT-for-KNIGHT pool: 25% of emissions, or 1.875 KNIGHT per block under that split.
Actual allocation follows the relative multipliers assigned across the farms and pools covered by the schedule. The guide says those multipliers can be rebalanced. Its allocation formula is
(total KNIGHT emitted per block / sum of allocation weights) * farm allocation weight
.
A multiplier expresses a farm's share of the emission stream. Increasing one farm's weight changes its allocation relative to the other weights; the multiplier isn't a multiple of a depositor's balance or a promised investment return.
The guide's daily distribution columns don't reconcile with its overall daily emission total. The published schedule also doesn't establish the currently configured contract rate. For a fixed per-block rate, daily issuance depends on how many blocks are produced.
Minting and completed burns determine net supply
Minting creates additional KNIGHT. A buyback acquires existing tokens and changes their ownership; reducing the unburned amount requires the acquired tokens to be burned. Supply expands whenever issuance exceeds completed burns over the same interval.
KnightSwap's documented supply check subtracts the designated burn-address balance from the token contract's reported total supply. This measures the amount left unburned. It doesn't establish how much is freely available for trading, because an unburned balance can still be subject to a staking lock.
A hypothetical burn with net supply growth
A completed burn can coincide with dilution when minting adds more tokens during the same interval. All quantities in this example are hypothetical: opening unburned supply is 1 483 000 KNIGHT, new issuance is 296 600 KNIGHT, completed burns are 148 300 KNIGHT, and a holder's unchanged balance is 1 483 KNIGHT. No other supply changes occur.
Closing unburned supply is
1 483 000 + 296 600 - 148 300 = 1 631 300
KNIGHT. The holder's fraction falls from
1 483 / 1 483 000 * 100 = 0.1%
to approximately
1 483 / 1 631 300 * 100 = 0.0909%
.
The burns offset half the issuance, leaving a 10% increase in unburned supply. With the other inputs unchanged, more minting would reduce that fixed balance's fraction further, while larger completed burns would increase it. This calculation measures a fraction of token supply and doesn't predict KNIGHT's price.
What rewards and staking change
KnightSwap's documented reward structure uses KNIGHT to reward users who stake eligible liquidity provider (LP) tokens in farms. KNIGHT can also be staked for additional KNIGHT or for partner tokens through raids, which distribute a finite partner-funded reward allocation only until the raid's end block. These mechanisms create uses for the token, but staking a balance doesn't itself remove that balance from unburned supply.
KnightSwap's staking announcement of March 23, 2023 introduced flexible and locked options specifically for the KNIGHT-to-KNIGHT pool. Flexible staking allowed withdrawal without penalty; locked stakes couldn't be withdrawn before the selected lock period ended. The announcement described variable rewards and higher annual percentage yield (APY) for longer locks. A lock restricts access to tokens without establishing a burn or a fixed future return.
Trading-fee income follows a separate allocation. Under the Exchange guide's fee split , 0.17% of the amount traded returns to liquidity pools, and 0.03% goes to the KnightSwap treasury. The pool component accrues to LP positions. These fee allocations and KNIGHT emissions are different economic flows when assessing rewards.
Reading supply-based valuations
Circulating market capitalization multiplies token price by circulating supply. KnightSwap's launch allocation and its unburned-supply calculation shouldn't automatically be substituted for that circulating figure.
For uncapped KNIGHT, a valuation calculated from a reported total supply describes that quantity at the quoted price. It can't account for an unknown amount of future minting. A rising reward balance therefore needs to be considered alongside changes in unburned supply and token price.