Which came first... 🐔🥚

Koinos offers a truly novel value proposition: dApps that anyone can use even if they don't have tokens. It was never realistic to expect blockchain to be used by a serious percentage of the world because the vast majority of people will probably never bother buying cryptocurrency. That doesn't stop you from operating a viable business on blockchain, but it does limit your monetization choices.

Traditional non-blockchain apps can offer a completely free-to-use experience with optional premium features. This works great for onboarding new users, but it's just not simple to do on blockchain. For most blockchains, users have to hold their own tokens before they can use dApps. This added friction constrains dApp growth to a level below the growth of the blockchain.

This is the primary concern for Koinos, and other chains are highly aware of the issue. Even Ethereum's ERC-4337 offers the concept of "paymasters" to let dApps or other sponsors pay for transactions for users without tokens. The problem with paying gas fees for users is that you lose money every time your dApp is used. You need significantly more profit to cover those losses.

Looking past the fee vs fee-less debate, let's say you've decided to build a free-to-use dApp. How will you fund your users' access? You probably need to have a good pool of tokens on hand just to get started. That means you need private investors or funds raised through an ICO before you launch. The burden is on the developer from the start.

KAP's goal is to establish a shared pool of tokens to fund usage of any dApp. This will remove the initial burden of funding from developers. Anyone can experiment with building a free-to-use dApp easily. This is better for users, better for developers, and better for investors.

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-Luke

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P.S. We believe in Koinos. Koinos needs dApps. DApps need users. Users need mana. Mana comes from KAP. KAP will be the catalyst that enables rapid growth of the entire Koinos ecosystem.