KIP-86: Exclude PNK Held by the Kleros Cooperative from KIP-66

Proposal
1

KIP-86: Exclude PNK Held by the Kleros Cooperative from KIP-66

Date: 2026-02-05
Author: Kleros Cooperative

Context

Since its inception, the Kleros Cooperative has maintained strict neutrality in case resolutions and has never staked any PNK in the Kleros Court.
The purpose of this policy is to prevent the largest stakeholder in the Kleros Protocol, the Cooperative itself, from having any influence over disputes and cases resolved in the Court.

Currently, all PNK tokens held by the Cooperative are included in the Total Supply figure used for the Juror Incentive Program calculations in KIP-66.

However, because these tokens will never be staked by the Cooperative, including them distorts the real staking participation rate and the incentives distributed to active jurors.

Proposal Details

This proposal amends KIP-66 (Long-Term Juror Incentive Program).

The current formula for s(i) — the percentage of total PNK staked in month i — is calculated using the full Total Supply of PNK.

This change excludes all PNK held directly or indirectly (via smart contracts) by the Kleros Cooperative from the Total Supply used in the s(i) calculation.

This includes PNK held in Cooperative Safe multi sigs and EOAs or control via smart contracts in DeFI Protocols from these addresses, here is an exhaustive list of all the Cooperative 14 adresses:
0x86ead908fb5d6f900ff109c9e26f79300f99271a (~104M PNK main address at the time of writing)
0xe979438b331b28d3246f8444b74cab0f874b40e8
0xb2a33ae0e07fd2ca8dbde9545f6ce0b3234dc4e8
0x5112d584a1c72fc250176b57aeba5ffbbb287d8f
0xdc657fac185d00cdfa34a8378bb87d586bf998f7
0xf636be494da13013f4506b1f5600089f2b4a1c6e
0x67a57535b11445506a9e340662cd0c9755e5b1b4
0x0ea9ddf020ce3bc13d508e7294fd8aca1cbae877
0x879041adce0debb392c6334c1462b06e908057cd
0xc80890ec72acb291bde13c448c54582e0bf3b688
0x14560fdefdde97b36a5102a846f8b846c368f7d5
0xc6b59d5e6c38de657f31d6254359f8739da2c07e
0xf1468dbe2d6155aaf52f57879a1f3b307243e4a7
0x718c76d04992a9f026260e8436cc565a9c1b6a8a

One expl of PNK controlled via smart contract is the main Uniswap liquidity pool UniV4 from the main Coop address 0xbb78d828ded564d7dfcf041eb1316200e4ec5380dc601c7b4872c0a2727a580e (~68M PNK at the time of writing) there are other LPs on Arbitrum (~5.5M) and Gnosis (~6M).

All these excluded tokens will not participate in staking and will not be counted within the juror incentive rewards.

This adjustment provides a more accurate representation of actual community staking participation while preserving the long-term ambitious target of 50% of (adjusted) PNK supply staked.

Example (January 2026 figures):

  • Without amendment: 33.6% = 308M / 915.5M
  • With this amendment: 42% = 308M / 732M (excluding ~104M in multisig + ~79.5M in Uniswap pools)

If approved, this change will take effect starting with the March 2026 calculation that will be performed at the beginning of April.

Voting Options

  • Yes — Approve the Proposal
  • No — Rework the Proposal
2

I think this proposal can not be put in vote as it is.

If the coop wants to remove their holdings from the calculation, the coop should list all the msig and eoas that holds and should be removed. Here only 1 msig is mentioned but that msig doesnt have a pool in balancer for example as you have said.

For transparency, so the community can check if the calculations are well made, in the proposal you should list which addresses should be removed, and if possible in which defi protocol are PNK deposited. If not, there is no way to control the calculations.

3

Thanks for the feedback! After checking internally, I’ve updated the proposal with all the 14 addresses controlled by the Kleros Cooperative.

A few of these are older addresses that aren’t used anymore, which is why the balances are low. if the Cooperative use new addresses in the future it will disclose them promptly in this thread.

I hope this helps clarify things and shows our commitment to staying transparent with the community.

4

NB: I have also edited the starting period in order to give enough time for feedback and the voting process; if the proposal is passed sucessfully these changes will take effect with the calculation of March 2026 rewards (instead of February 2026 as initially stated).

Our team has already prepared the PR to change the reward calculations accordingly, which will be merged only if this proposal is approved. This is our public repo, so if you want to have a look or have any feedback, feel free: feat: kip86 by kemuru · Pull Request #35 · kleros/pnk-merkle-drop · GitHub

5

Will you be dynamically updating the circulating token count to account for the tokens that you release via incentives and everything else?

How will you ensure the circulating count is real time and accurate?

Overall, I am thinking I will be voting No regardless though. If you want to increase the staking amount, burn the tokens you have, besides that I will probably be voting No and not supporting anything that even minutely feels like cooking the books or the accuracy of the economic status of the project.

6

Hi @KlerosJuror, we will ensure that the numbers are accurate thanks to the script on GitHub that accounts for all PNK tokens on-chain, excluding those held by the Cooperative.

When incentives are distributed by the Cooperative, they leave the Cooperative’s wallets and so are no longer excluded.

7

A script doesn’t mean it’s real time. Real time means there is production grade software that manages the numbers in real time. A script is what junior level and novice level developers do to manage complex software and processes.

Again, I will most likely be voting no.

At that level of technical expertise, it’s probably best to just burn the tokens, or give up on this proposal idea to pseudo-cook the books.

8

This proposal will be put to vote today in Snapshot with a dedicated Futarchy market.