About Kelp DAO (KEP)

What was the KEP token?

KEP (Kelp Earned Points) was an experimental crypto token launched by Kelp DAO in February 2024. It tokenized EigenLayer Points into a tradeable asset, solving the problem of non-transferable restaking rewards. The idea was bold—users could finally treat EigenLayer Points like real tokens within DeFi. However, the project was short-lived and permanently discontinued by April 2024. Since then, Kelp DAO shifted focus to rsETH and broader restaking campaigns.

How did KEP’s tokenomics work?

The KEP token had a dynamic supply linked 1:1 with EigenLayer Points. There was no hard cap—if you earned 1 EigenLayer Point, you could claim 1 KEP. Supply expanded as users restaked ETH through Kelp and claimed weekly rewards. At its end, about 169 million tokens had been minted, all tied directly to user activity. After discontinuation, no new minting or claims occurred.

Was there a vesting or unlock schedule?

Unlike typical tokens with preset unlocks, KEP was distributed on a weekly claim cycle. Restakers could convert their EigenLayer Points into KEP every Wednesday. Claims came with a 0.5% fee, which went back to Kelp DAO’s incentives. Once paused in April 2024, no more claims or unlocks were possible. This contrasts with Kelp DAO’s current rewards, where rsETH must stay staked for at least 45 days to qualify.

Did KEP raise money through an ICO or presale?

No, KEP itself wasn’t sold. Instead, it represented earned rewards. Still, the project had backing—Kelp DAO closed a $9 million private round in March 2024 at a $90 million valuation. Investors included SCB Limited, Nomura’s Laser Digital, Bankless Ventures, Hypersphere Ventures, and DWF Labs. These funds supported both the KEP experiment and the continuing rsETH ecosystem.

Where was KEP traded?

KEP only ever traded on decentralized exchanges. The main pairs were KEP/WETH on Uniswap V2, KEP/USDC on Uniswap V3, and KEP/rsETH on Curve. These markets were live just two months, then permanently shut down when the token was discontinued. Today, no usd or usdt pairs exist, and all trading shifted to other Kelp DAO tokens like rsETH.

What activities supported KEP distribution?

There were no airdrops or ICOs. Instead, users earned KEP by holding rsETH or related DeFi positions. Liquidity providers on Pendle, Uniswap, and Curve could convert their EigenLayer Points 1:1 into KEP. This campaign ran from late February until the April shutdown. Now, new rewards come through active rsETH airdrop campaigns, with $1M allocated and clear eligibility rules.

What was KEP’s role in the Kelp DAO ecosystem?

KEP was meant to unlock liquidity for EigenLayer Points. It allowed restakers to trade, LP, or even farm with their otherwise locked rewards. You might wonder—so what’s the point now? The answer is none. Kelp DAO pivoted to the KernelDAO model and ongoing rsETH campaigns, replacing KEP with the KERNEL governance token as the ecosystem’s cornerstone.

Why was KEP discontinued?

Several reasons converged. Regulatory uncertainty loomed—tokenizing another protocol’s reward system is murky territory. The dynamic supply model also proved complex to maintain. And the market itself was volatile, with KEP swinging between $0.05 and $0.20 in weeks. Ultimately, Kelp DAO chose to shut it down rather than force a broken system. The pivot to rsETH staking campaigns reflects a more sustainable path.

Did KEP holders receive compensation?

Unfortunately, no. Once discontinued, KEP lost all functionality—holders couldn’t trade, claim, or migrate their tokens. Unlike projects that offer swaps or buybacks, Kelp DAO made no recovery path. It’s worth noting: this total loss set a precedent for the risks of tokenizing external reward systems. Future rewards are tied to rsETH restaking, with clear terms such as minimum 45-day lock-ups.

What replaced KEP in the ecosystem?

Kelp DAO transitioned into the broader KernelDAO ecosystem. The new focus is on the KERNEL governance token, with a fixed supply of 1 billion, and on rsETH as a core restaking asset. Instead of tokenizing external rewards, the project now builds on liquid restaking, yield vaults, and multi-chain infrastructure—less experimental, more sustainable.