What is Kleros?
PNK is the native token of Kleros, which is an Ethereum-based dispute resolution protocol. Kleros leverages blockchain technology to achieve an open-source mechanism to fairly determine and decide the credibility of claims in a dispute. Kleros can be deployed on sectors with a high frequency of disputes such as escrows, decentralized finance (DeFi) projects, and e-commerce platforms.
Kleros aims to transform dispute resolution from the commonplace traditional courts. In conventional courts, there are only a few jurors, making it practically easier to manipulate. Take, for instance, a dispute between an established corporation and an individual customer. The corporation can easily corrupt the jurors to rule in their favor. Under Kleros, adjudication is decentralized, because Pinakion token (PNK) holders can participate in the dispute resolution process. If you want to see the live PNK price, take a look at the Kleros price chart above.
Compromising jurors across the Kleros network would definitely be costlier than the disputed costs. So, the protocol establishes credibility in enhancing fair arbitration systems. In case of a conflict, parties apply for resolution on Kleros and pay arbitration fees. The fees are payable in ETH and are drawn from tokens that the parties hold in an escrow. Then, the protocol selects jurors from Kleros token holders. When the arbiters decide on the conflict, the protocol distributes arbitration fees to jurors proportionate to their stakes.
Besides, the jurors on the minority decision lose some Kleros crypto they hold. These lost tokens are rewarded to those in the majority as incentives. This mechanism incentivizes fairness and credibility among network participants.
However, Kleros provides a chance to appeal decisions. The appealing party incurs additional costs for the process. Essentially, Kleros eliminates all the bureaucracy in conventional judicial systems. Any party, regardless of their financial backing, can easily access a fair and just arbitration system.
Apart from the Dispute Resolver, Kleros features more decentralized applications or dApps. In the absence of disputes, parties use Kleros as a trustless payment protocol, where payments are released after escrow conditions are met. Other functionalities of Kleros include token listing, a peer-to-peer (P2P) marketplace, a translation service provider (Linguo), and a curated lists creator.
The Story of Kleros
The Kleros crypto project is the brainchild of a trio comprising Nicolas Wagner, Federico Ast, and Clément Lesaege. All three team members have experience in the tech sector. For example, in the past, Nicolas Wagner worked as a developer of various blockchain projects like Dether.io. Federico Ast, on the other hand, developed Crowdjury – an online platform that seeks to revolutionize the justice system by leveraging Web3 applications. While Clément Lesaege he has experience in machine learning from Technicolor and works as a smart contract security expert.
This depth of expertise and experience in the team has seen the protocol grow to new heights since launching in mid-2018. The project has received nods from top blockchain experts. In one case, Ethereum co-founder Vitalik Buterin mentioned Kleros in his 2019 presentation, highlighting the protocol as a mechanism for verifying humans through a vote.
The project’s leaders have also presented Kleros to seminars by governing bodies like the European Commission, research institutions like Stanford and Columbia University, and tech seminars.
What Can You Do With Kleros Tokens?
Primarily, users can stake PNK tokens on various courts in the protocol to earn monthly incentives. Staking tokens in courts with frequent disputes earns users more rewards and further secures the protocol. PNK stakers can also participate in various protocol activities.
Besides that, PNK stakers can deploy their coins as governance tokens. Thus, they get the right to vote on potential changes to the Kleros crypto project or propose their own changes. The higher the PNK stake is, the higher the vote’s weight is.
Don't forget to check the Kleros price chart that features the current PNK price.
PNK Tokenomics
Kleros has no max supply set. However, the protocol ensures that no one user holds over half of the token supply, as that would give them an undisputed majority over the system. In case of a successful bribe, the PNK price would plummet. Thus, the system secures itself against bribing by making it very costly and impractical to compromise a majority decision.
Apart from securing the protocol to resist compromise, the project also aims to expand further. The community hopes that, when more companies adopt the Dispute Resolver and other Kleros' dApps, the PNK price will increase.
