KIP-58. Extension of the Juror Incentive Program in 2023

A sufficient amount of staked tokens is necessary to guarantee the security of the Kleros protocol against attacks. By KIP-37 and KIP-46, the community approved a staking rewards program with the goal of increasing the amount of PNK staked in the Kleros protocol.

There is currently nearly 115M PNK staked according to Klerosboard.

As the program is near to an end, the goal of this proposal is to extend it for one more year in 2023.

Extra Staking Incentives

In the Kleros protocol, jurors are already rewarded for their work with arbitration fees when they get drawn in a dispute. However, staking in courts with a low amount of disputes per staked PNK (like the general court) doesn’t provide a high amount of financial rewards while those stakers are still securing the system.


I propose to extend the program for 12 months starting in January 2023. Each month, jurors will receive a total of 1,000,000 PNK each month in proportion to the time and amount staked in that month. The proposed allocation is 90% on mainnet and 10% on xDAI.


The tokens will be distributed using a Merkle Drop contract.

There may be a seasonality of the distribution (like once per week/month).

The computation of rewards may use snapshots as long as those are taken at least once per day (i.e. if tracking every stake/unstake events is not easy, it is possible to look at snapshots of staked balances and use those to determine how to split the rewards for that period of time).


The goal of this proposal is to incentivize PNK holders to continue staking their PNK and thus securing the protocol. At current values, the program has a reward of a 9% APY (labeled in PNK).


:bulb::bulb::bulb: RANDOM

Run some scripts to find the most unlucky juror, someone who was staking for a long time but didn’t get many cases…

And now it’s he / she / they / them lucky day!

I’m also thinking that 90 / 10 split is perpetuating ETH dominanance.

Maybe we should incentivize xDAI more?

Is there enough economic activity though?

Is V2 allowing gasless voting and passing messages between chains? (not just EVM)

I’m OK with the incentives for now but also happy to provide some “cashback”… Those who create disputes, those who fuel Kleros PNK economy should receive some rewards.

They already received great service, great treatment, ability to use a great product… That leads to a follow up thought. TWO TOKEN STRUCTURE:

  • PNK for jurors
  • PNK_GOV for governance

Probably overcomplicated, loads of 2nd order effects.

I just wanted to make a point that continuing with 90 / 10 incentives biased towards ETH is perpetuating the dominance of the chain and other options are possible.


Maybe a triple token system:

  • Reputation NFT token.
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Infinite possibilities.

On-chain credentials:

Separating economic interest from voting - example PoH - - they are using VOTE not UBI

Thinking about scenarios where it is beneficial to have it separate, as well what are the situations when a divergence could occur.

PNK holders should vote for policies that ensure prosperity and longevity. Same logic should apply for theoretical hypothetical (not existent yet) PNK_GOV holders. But surely there are some edge cases where the interests are not so aligned.

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