Time Power Proof Contract

Time Power Proof (PoTP) is the time-weighted governance engine in the KLK Sync Nexus incentive model, designed to incentivize collaborators with high loyalty and long participation periods. With a dual design of periodic bonus and time retroactive mechanisms, it builds a quantifiable incentive system of "time equals power" to create a true long-termist structure on-chain.

Time Bonus Cycle Mechanism

• Core Logic: The longer a user collaborates without withdrawing rewards, the higher their Time Power Points (PoTP) will be boosted, which enhances Rebase rewards, governance weight, and resource priority.

Collaboration Period Requirement	Bonus Percentage	Status Description	Status Explanation
Default Stage	First accumulation of 10 days	+1% ~ +10%	Initial loyalty recognition
Bonus Stage 1	Accumulated 20 days	+11% ~ +20%	Entry-level long-term user
Bonus Stage 2	Accumulated 40 days	+21% ~ +30%	Mid-level collaborator
Bonus Stage 3	Accumulated 80 days	+31% ~ +40%	High-level loyalist
Bonus Stage 4	Accumulated 160 days	+41% ~ +50%	Core deep consensus member.

Explanation:

• The bonus percentage is dynamically judged by the AI Treasury's smart scheduling engine (based on DCP fund pools and overall network behavior).

• Each stage of bonus must complete the previous cycle before moving to the next.

• All stages of cumulative collaboration must be uninterrupted to retain progression rights.

Time Retroactive Mechanism

• Trigger Condition: When a user actively claims or withdraws any PoTP rewards (e.g., Rebase accumulated rewards), it is considered a "collaboration cycle interruption".

Mechanism Logic:

• The system will automatically reset the user's "Time Power Bonus Cycle" to the initial stage (Stage 1).

• This reset does not affect the user's total points, but their bonus multiplier will begin accumulating from the start.

• This prevents short-term withdrawals from diluting the long-term incentive system.

Incentive Guidance:

• Through the design of "progressive bonuses + retroactive penalties", the PoTP contract guides users to make rational choices to "maintain time collaboration", thus building a long-term collaboration-based user structure and resource governance system.

PoTP Points Application Scenarios

1. Rebase Rights Distribution: Higher points result in a larger distribution base.

2. Governance Power Levels: Tied to vcKSP governance voting rights, points determine proposal and voting weights.

3. Priority Resource Access: Participate in scarce pools, high-yield AI town scenarios, and RWA whitelist qualifications.

4. Token Unlock Priority: Bound to release rhythm in the AI Treasury contract.

KLK Sync Nexus Donation Mechanism

• Game-Theoretic Stability Guarantee System: Prevents collective betrayal behaviors in incentive regulation engines.

The KLK Sync Nexus introduces a Donation Mechanism within the AI Treasury and Rebase incentive structure. Its core purpose is to dynamically weight incentive releases and prevent users from choosing the "exit-sell" (-3, -3) negative game path, thus ensuring the system's resilience against non-cooperative shocks.

Why the Donation Mechanism is Needed? In DeFi protocols, if users simultaneously choose large withdrawals and sell-off, it can lead to:

• Instantaneous incentive imbalance.

• Rapid outflow of protocol assets.

• Long-term collaborators being harmed.

• A collapse in the (-3,-3) collective game equilibrium. The KLK Sync Nexus Donation Mechanism is designed to avoid such a collapse.

Incentive Release ≠ No Cost When users receive KSN incentive rewards from the protocol, they can choose different release cycles. Shorter release cycles will require users to donate a certain percentage of USDC or KLKO as a system coordination compensation. Donations will be partially burned and partially returned to the AI Treasury contract for collaborative incentive cycles.

Release Period	Donation Requirement	Donation Ratio	System Behavior Recognition
10-day Linear Release	USDC or KLKO	25%	High-speed exit type, strong arbitrage tendency
40-day Linear Release	USDC or KLKO	15%	Medium-short cycle release, strategic exit
70-day Linear Release	USDC or KLKO	10%	Collaboration-oriented release, low negative impact
100-day Linear Release	None	0%	Highly loyal behavior, system preferential treatment

• The faster a user exits, the higher the burning cost.

• The longer the user's collaboration period, the lower the release cost.

This creates a positive-sum incentive system at the behavioral level.

Four Main Roles of the Donation Mechanism

1. Prevents (-3,-3) Collective Betrayal Behavior: Users must pay a high donation cost if they profit and sell simultaneously; the system discourages malicious synchronized exit behavior.

2. Strengthens Long-Termism’s Defensive Mechanism: Only low-frequency, high-loyalty behaviors can maximize release efficiency, with the protocol actively transferring reward rights to collaborators.

3. Automatically Completes System Contraction and Value Recapture: The burn mechanism recaptures value to the AI Treasury, adjusts the supply curve, and dynamically relieves system pressure.

4. Builds Behavioral Credit Thresholds for Rebase Rewards: Not all rewards are immediately accessible; the system uses "behavioral cost + time tolerance" to determine reward release paths.