Kite is an EVM-compatible Layer-1 blockchain built specifically for what it terms “agentic payments,” meaning secure, real-time transfers between autonomous AI programs. The network – developed by blockchain research firm Zettablock – provides a foundational infrastructure where AI agents, acting on behalf of users, have cryptographic identities and carry out transactions under programmable rules. In practical terms, Kite’s chain lets agents not only generate content or make decisions, but also move money on-chain without human intervention. Key to this vision are on-chain state channels and micropayment rails: most transactions happen instantly off-chain, settling only their net results on the blockchain. This allows agents to negotiate and pay for services in stablecoins at near-zero fees.
Kite’s Layer-1 is built for speed and scale. It uses a proof-of-stake consensus (branded as “Proof of AI,” or PoAI) that leverages machine-learning validators to optimize transaction processing, targeting sub-second block finality and essentially zero gas costs. For example, Kite reports average block times around one second and can handle millions of agent interactions per day. The chain is stablecoin-native by design, meaning agents transact in fiat-pegged tokens, and it aspires to sub-penny fees. These performance characteristics – high throughput, low fees, and stablecoin compatibility – are aimed at supporting the high-volume, microtransaction nature of agent-to-agent commerce. In effect, Kite provides a digital payments backbone where millions of AIs can coordinate quickly and cheaply.
Underlying the platform is a novel three-layer identity architecture. At the top sits the human user, who holds a master key and remains the ultimate authority. The user’s AI assistants are treated as separate “agent” identities, each with its own derived wallet and permissions. Critically, each individual action that an agent takes is executed via a temporary “session” key that expires after use. This means users never give full, uncontrolled access to a single account. If a session key is compromised, only that one session is at risk. If an agent attempts something beyond its delegated authority, it is automatically blocked. As Binance Academy notes, trust in Kite flows from architecture rather than promises. This layered design is supplemented by the Kite Passport identity system – a cryptographic registry that gives every AI model or agent a unique, verifiable identity for traceability and governance.
Kite also introduces a modular ecosystem. Developers can spin up specialized subnets called “modules,” each focused on a certain domain (like data processing or AI model hosting). Module owners manage membership and rewards within these ecosystems, with KITE token staking as the on-chain admission ticket. All modules connect back to the main chain: on-chain settlement and governance remain unified on the Layer-1 blockchain. In practice, modules serve as on-chain marketplaces: data sets, APIs, and trained models become tradable assets. Users can browse or subscribe to modules much like an app store, paying with KITE for those services.
Kite’s payment rails are optimized for AI use cases. As mentioned, the blockchain leverages off-chain state channels so that agents transact instantly with microtransactions. The idea is that payments are “living flows” rather than simple transfers: agents can stream payments, issue refunds, and attribute exact charges to specific tasks. Every transaction is stablecoin-based and tied to an “intent” protocol (x402), which standardizes how an agent requests a service and authorizes payment. This approach not only minimizes fees but also provides built-in auditability: each micro-payment corresponds to a signed intent on-chain. Such optimization allows very high-frequency, tiny-value exchanges (for example, one agent paying another for a data query) without clogging the blockchain.
At the heart of Kite’s economy is the KITE token, which has a fixed supply (10 billion tokens) and a carefully layered utility model. In Phase 1 of its launch, KITE primarily functions as an access and incentive token. Module creators and service providers must lock KITE into liquidity pools to activate their modules, and builders need to hold KITE to integrate with the network. A portion of the initial supply is distributed to users, developers, and businesses as rewards for contributing value to the ecosystem. In Phase 2 (the mainnet launch), KITE’s use expands: service fees collected from AI transactions are converted into KITE and distributed to modules and the Layer 1 network, users can stake KITE to secure the chain and earn rewards, and holders gain governance rights over protocol upgrades and economic parameters. As the native currency, KITE will also pay gas fees for transactions and serve as the settlement token for agent commerce: holders use KITE to execute x402-standard payments between applications, and to stake or vote in governance.
The token economics are designed to lock in real value. For example, fees collected in stablecoins from AI services are swapped into KITE and fed back into the system, creating natural buy pressure tied to usage. Validators secure the blockchain by staking KITE, and they each select specific modules to back, aligning incentives with productive ecosystems. Over time, Kite aims to transition from an emissions-based reward model to a revenue-driven economy: initial token emissions bootstrap early network participation, but eventual rewards come from actual AI service usage. In total, nearly half of the 10-billion supply is set aside for ecosystem development and community incentives, with the rest allocated to investors, modules, and the founding team, all vested to align long-term commitment.
Kite’s development has attracted strong backing and partnerships. The founding team (veterans from Databricks, Uber, and UC Berkeley) raised $33 million in funding led by PayPal Ventures and General Catalyst, with Coinbase Ventures joining in late 2025. Through that partnership, Kite became one of the first blockchains to implement Coinbase’s x402 Agent Payment Standard, integrating standardized agent-payment primitives at the protocol level. The company is also collaborating with major platforms like PayPal and Shopify, aiming to make thousands of merchants discoverable and payable by autonomous agents. In late 2025, KITE also went through Binance’s Launchpool program, distributing 150 million tokens to early participants, and began trading on Binance (with pairs including USDT, BNB, and others).
Potential uses of Kite are broad. For example, personal shopping agents could autonomously handle a consumer’s e-commerce purchases via Kite, using the shopper’s stablecoins and avoiding repeated login credentials. Factories might deploy supply-chain agents that automatically reorder parts from verified vendors, with each transaction immutably recorded on-chain for compliance. Corporate bots could manage invoices and cash flow under on-chain audit trails. Kite’s ledger ensures every autonomous transaction is recorded and traceable.
In summary, Kite aims to be the foundational Layer 1 blockchain for an “agentic internet.” Its architecture reimagines wallet and key design around AI agents, its payments layer is tailored for machine-to-machine money flows, and its modular governance incentives attract builders of AI services. While still in testnets, Kite’s vision is that hundreds of agent-powered applications – from personal finance bots to IoT marketplaces – will soon be built on top of this chain. By combining real-time payments, programmable governance, and a robust identity fabric, Kite could catalyze a new wave of autonomous systems that transact and collaborate at scale, all under human-defined constraints.
Sources: Details on Kite’s design, identity layers, modules, payment rails, and token phases are drawn from Kite’s documentation and recent analyses. Information on tokenomics and utilities comes from Kite Foundation materials. Coverage of funding, partnerships, and exchange listing is reported by press releases and industry news. All citations link to publicly available sources for verification.
