#kite $KITE
Many chains open all functions at once, resulting in an inflated state due to subsidies in the early stages, followed by a sharp decline due to lack of real usage. Kite's approach of splitting utility into two phases is based on economic considerations. The first phase focuses on ecological participation and incentives, allowing for a positive feedback loop among data supply, execution nodes, and developers: where there are tasks, there is cash flow; where there is cash flow, nodes can scale; where there is scaling delay, stability arises; and stability brings more tasks. The second phase introduces staking, governance, and fee offsets, binding security budgets to usage, allowing the network to break free from external blood transfusions. The benefit of the dual-phase approach is that it separates 'short-term scale' from 'long-term order,' avoiding governance being hijacked by speculative-driven peaks.
