The King Token

King (formerly known as LRT²) is the new standard in LRT rewards, significantly simplifying the claiming experience by tokenizing rewards earned when restaking.

As restaking network protocol rewards come online, the multitude of restaking network protocols emitting rewards will mean a multitude of tokens to distribute. AVSs can distribute those in any ERC20 token, however, most of stakers will receive small, fractional amounts. For many, these can be more trouble than they’re worth to claim or trade in swap pools, leading to a frustrating experience for stakers, and low token utilization for AVSs.

King is a unified restaking rewards protocol. Its vault holds the rewards tokens as underlying assets. Through King, LRT projects can pool restaking network protocol rewards into this single vault and issue vault share tokens to their stakers (or distributor contract). This system cuts transaction costs and streamlines the rewards process, great for those with smaller stakes who might find it easier to manage and trade their shares collectively. Larger stakeholders can redeem and possibly arbitrage, which will drive the market price of King token.

AVS Rewards Distribution Before King Protocol

Figure 2: Traditional distribution of LRT rewards.

With traditional distribution from LRTs, Stakers receive multiple small and scattered rewards, which can be expensive and cumbersome.

AVS Rewards Distribution with King Protocol

Figure 3: King Protocol's distribution of consolidated rewards.

Rewards are aggregated into one token, King, simplifying the management and trading process for users, still allowing them to unwrap it for the underlying asset proportionally. King Protocol will have a governance token which determines which restaking network protocol tokens to whitelist and which LRTs can deposit rewards and mint shares. The governance token will also manage its own treasury, accumulating fees to grow its value over time.

For technical details, please consult King Protocol's whitepaper.