August 8, 2025
5 min read
@solanafloor
$KMNO Holders Question Token Utility as Kamino Launches Season 4 Rewards
Kamino Finance, a prominent liquidity hub on Solana, has unveiled its Season 4 incentives campaign, introducing significant changes to its reward distribution system. The new campaign heavily emphasizes Kamino's Earn product, with boosted APYs driven by $KMNO emissions to attract increased capital. This announcement comes as Kamino celebrates becoming the largest source of Total Value Locked (TVL) on Solana. However, $KMNO holders have expressed concerns regarding the token's perceived lack of utility. Over the next three months, Kamino plans to distribute 100 million $KMNO tokens, valued at approximately $5.1 million, to its users. This distribution marks a shift from previous seasons, which relied on ambiguous "points" systems, to a direct distribution of locked $KMNO tokens. Tokens will be claimable starting November 6th, with options for users to stake their existing $KMNO holdings for enhanced rewards. To mitigate potential price volatility from the large token distribution, Kamino has implemented a gamified vesting schedule. Earned $KMNO tokens will be claimable over a 6-month period, with penalties for early claiming. Tokens forfeited by early claimants will be redistributed as bonuses to those who wait until the end of the vesting period. Initially, the majority of Season 4 rewards are directed towards Kamino's Earn vaults, particularly those focused on stablecoin deposits. By using $KMNO rewards to boost stablecoin vault APYs from 4-6% to over 20%, Kamino aims to incentivize capital inflow, with the caveat that depositors must lock their $KMNO tokens until April 2026 to realize the full yield. Kamino's Season 4 launch coincides with its achievement of the top spot in Solana DeFi's TVL rankings, surpassing $2.9 billion and overtaking Jito. Kamino's TVL now stands at an all-time high of 16.53 million $SOL. The competitive landscape for Solana's DeFi TVL remains fierce, with Jupiter Lend's recent private beta and upcoming public launch poised to attract substantial capital. Jito is also making strategic moves, with its liquid staking token, $jitoSOL, integrated into REX-Osprey's Solana Staking ETF ($SSK), potentially benefiting from ETF approvals. Despite the platform's growth and new incentive structure, $KMNO holders are vocalizing concerns about the token's limited utility. While many Solana ecosystem tokens feature programmatic buyback and value accrual mechanisms, $KMNO currently only offers staking for more $KMNO rewards. Furthermore, despite its positioning as a governance token, no governance proposals related to Kamino's operations have been introduced. This lack of tangible utility beyond reward accumulation has led to dissatisfaction among some holders, who are anticipating the implementation of value-accruing features for $KMNO.Frequently Asked Questions (FAQ)
Kamino Season 4 Rewards
Q: What is the main change in Kamino's Season 4 rewards compared to previous seasons? A: Kamino has abolished its "points" system in favor of directly distributing locked $KMNO tokens to users. Q: How many $KMNO tokens will be distributed in Season 4? A: Kamino plans to distribute 100 million $KMNO tokens, valued at $5.1 million, over the next three months. Q: When can users start claiming their Season 4 rewards? A: Tokens will be claimable starting November 6th. Q: How does Kamino plan to manage the price impact of the new $KMNO tokens? A: Kamino is implementing a 6-month vesting period for earned tokens, with penalties for early claiming and bonuses for those who wait to claim. Q: Which Kamino products are being heavily incentivized in Season 4? A: The incentives are primarily directed towards Kamino's Earn product, particularly stablecoin-based vaults.$KMNO Token Utility
Q: What is the current primary utility of the $KMNO token? A: Currently, the main utility of $KMNO is staking to earn more $KMNO rewards. Q: Have there been any governance proposals related to $KMNO? A: Despite being perceived as a governance token, no proposals related to Kamino's governance or operations have been created. Q: What are holders expecting in terms of $KMNO utility? A: Holders are awaiting the introduction of value accrual mechanisms for the $KMNO token.Crypto Market AI's Take
The launch of Kamino's Season 4 rewards and its rise to the top of Solana's TVL rankings highlight the protocol's growth and strategic approach to capital attraction. However, the ongoing discussion around $KMNO's utility is a critical point for long-term token holder confidence. As the DeFi space matures, utility and value accrual mechanisms become increasingly important for token sustainability. For users interested in understanding the broader Solana ecosystem and the competitive landscape, our platform offers insights into Solana's growth and the impact of DeFi innovation. Additionally, for those looking to grasp the underlying mechanics of tokenomics and how they influence project success, our resources on understanding cryptocurrency token utility can provide valuable context.More to Read:
- Private markets now live on Solana: Solana Beats TradFi to Democratize Private Market Trading
- What is Lending in DeFi?