KARMA v2: Migration & Launch

Why v2

Karma has outgrown v1. v1 launched on Believe (discontinued launchpad); v2 graduates to Virtuals on Robinhood Chain, with launch infrastructure built for the next phase. The app is live (iOS, Android, web) with swaps, perps, Visa cards and EUR/USD accounts, and real volume flowing: $2.84M all-time, $893K in the last 30 days. v2 aligns the token with the product's economics: fee-funded buybacks, creator rewards, and supply mechanics built for the next phase. Launching via Virtuals gives v2 institutional-grade launch infrastructure and deep day-one liquidity. Robinhood Chain's gas-free window means claiming and trading costs holders nothing through late September.

Straight talk on dilution

This should be said plainly, because it's the first thing any serious holder will work out. It's why we ran 1:1 calls with our larger v1 holders before publishing this, and changed the terms based on what came back: 100% of proceeds from deposited v1 now go into v2 liquidity instead of the company, and unclaimed supply goes to the holders who migrated instead of the treasury.

v1 holders hold ~81% of v1. In v2, the migration pool is 20%. That is dilution, and no framing changes it. Here is the reasoning behind it, and you are free to disagree with it.

v1 was never designed for this.

The token launched as $CHAD, an experiment, on Believe (a discontinued launchpad), before Karma existed as a product. The name changed; the structure never did. The clearest example: v1 charges a 2% tax on every transaction. v2 halves it to 1%. There is no way to retrofit a meme-like launch structure onto a company running cards, IBANs and $2.84M in volume. v2 is the first time the token is built on purpose, for the thing it's actually attached to.

The team is paid last, or not at all.

25% of v2 is locked for a full year, then vests over six months. The other 25% converts to USDC only as FDV climbs from $2M to $160M. At launch, and anywhere below $2M, the team receives nothing. If the team is ever paid meaningfully, holders are up many multiples first. That is the entire mechanism: no growth, no funding. It is enforced by Virtuals' contracts, not by our word.

What we gave up, in writing.

The team's own v1 position (13.93%) does not claim v2 at all. 100% of the proceeds from deposited v1 go into v2 liquidity, not to the company. Unclaimed supply goes to the holders who migrated, not to the treasury. The pre-funding for the entire 20% holder pool comes out of the founder's pocket, and is not recovered. Buy-side trading tax drops from 2% to 1%, halving what the token takes on every buy.

Why the structure has to fund something.

Karma is not a meme with a Telegram. Competing as a non-custodial fintech means licenses, compliance, infrastructure and years of building, and that costs real money. The ACF is how that gets funded, and it is deliberately the slowest possible way to do it: the company receives capital only as the token grows, from $2M FDV upward, in increments, forever tied to market valuation. There is no version of this where the team is funded and holders are not. That is the point of the mechanism.

What you're actually choosing between.

v1: a token structure built on broken mechanics, for an outdated project. v2: a token built for a live product, with 95% of net swap fees buying it on-market from day one, launched on infrastructure aligned with where the product is going.

Migration is optional.v1's liquidity pool is permanently locked and can never be pulled, so anyone who prefers to stay or exit can do so at any time, with or without us. This is a bet on the next phase being worth more than the last one. We think it is. You get to decide for yourself.

v2 Supply Structure

Fixed supply. Mint authority renounced at launch. Verification link published with the proof links.

The Migration: how it works

• 20% of v2 supply is reserved for migrating v1 holders, distributed pro-rata: your share = your eligible v1 ÷ total eligible v1.
• This is a fresh v2 launch, not a fixed-price 1:1 swap. v2 opens at its launch price and moves with the market from there. You are choosing to move into v2, not converting at a locked value.
• What happens to deposited v1: it stays in the public migration wallet, untouched, for the full window. Only after the 60-day window closes is deposited v1 sold, and 100% of the proceeds are added to v2 liquidity. Nothing is sold during the window, so the v1 market stays intact and never competes with holders for exit liquidity. The team pre-funds the entire v1 holder allocation at launch out of pocket and takes nothing from the sale.
• Anti-sniper protection is active at launch: a buy-side tax starts at 99% and decays to 1% across the protection window, neutralizing bots during early price discovery. Sell-side stays at a flat 1% throughout. Taxes collected are automatically used to buy back tokens on-chain. (Exact window length confirmed at launch setup.)
• How to migrate: go to the portal, connect your Solana wallet, deposit your v1, register your Robinhood Chain (EVM) address. Portal: migrate.trykarma.app
• When you receive v2: everyone who deposits before launch is included in the first airdrop. The holder pool is reserved at launch and v2 lands in your registered address within 24 hours after. Deposits made later are airdropped on a rolling basis.
• No lock, no vesting on your claim. v2 is fully tradable the moment you receive it.
• Migration window: 60 days from launch.
• Unclaimed redistribution:after the window closes, 100% of the unclaimed pool is redistributed pro-rata to wallets that migrated, as a final bonus airdrop. The fewer who migrate, the larger each migrator's share. Migration participation is rewarded by design.
• Eligibility (two snapshots): one taken at this announcement (slot 433159328, 1,813 holders, sums to exact on-chain supply). Verify it yourself: snapshot CSV · sha256 c9a8766ee194cc97c6bca7a61c30fb1a741de2546fcaaba293c124709295ae0c, and one at a pre-launch cutoff, Thursday July 16, 20:00 UTC. Your migration cap = the lower of your two balances (tokens you've already deposited to the portal count toward your launch-snapshot balance, so migrating early never reduces your claim). v1 bought after the announcement snapshot carries no claim.
• Your base share = your deposited v1 ÷ total eligible v1 supply (80.84% of supply, 804,314,478.85 KARMA: total minus the team wallet and the Believe-era allocation).

Exclusions (full disclosure)

• The team wallet (13.93%) and the Believe-era allocation (5.22%)do not claim v2. The old launchpad's allocation stays with v1; it does not follow the project to the new platform.
• Because they don't claim, they are also removed from the denominator: the full 20% pool is divided among the remaining 80.84% of supply. Every migrating holder's share is proportionally larger as a result. The excluded ~19% benefits migrators by construction, not as a separate airdrop.
• The v1 liquidity pool and burn addresses are excluded from claim math.

The Flywheel: fee-funded buybacks from day one

• For the first 90 days: 95% of net in-app swap fees flow to a public flywheel wallet and buy $KARMA on-market on a fixed schedule (TWAP/DCA). The company retains nothing from swap fees during this period.
• The long-term policy will be published before the 90-day period ends. Changes are announced in advance, never silent, never retroactive.
• Good Karma pledge: 5% of net swap fees are donated monthly to charity. One charity per month, preferably settled on-chain to the charity's public wallet, but in any case with the transaction link published every month.
• Full waterfall, first 90 days: 95% flywheel / 5% charity.
• Scope: net in-app swap fees (aggregator/routing costs deducted). Perps, card and account economics are excluded and fund the company.
• Bought $KARMA splits 50/50: half funds creator rewards, half enters the locked ecosystem reserve.
• Nothing bought is ever sold. Reserve tokens have no unlock date and may only be deployed into creator rewards, user incentives, and ecosystem programs.
• Flywheel and reserve wallet addresses are published at launch. Every buy verifiable on-chain.

Creator Economy

Post on the Karma feed, trades attributed to your post generate fees, you earn a share, paid in $KARMA sourced from the flywheel (bought on-market, so creator rewards are buy pressure by design). USDC payout election available at a reduced rate. Full creator program details ship with the feature rollout.

Team Alignment

The team's 50% follows Virtuals' standard, on-chain, growth-aligned schedule:

• Automated Capital Formation (25%): the team is funded in USDC only as the token grows. Proceeds release automatically at rising FDV milestones ($2M through $160M), tied strictly to market valuation. No growth, no release.
• Team Allocation (25%): locked for 1 year post-launch, then a 6-month linear vest. This portion intends to also fund future exchange listings (e.g. Binance, Robinhood) as the project scales.

All schedules are enforced by Virtuals' contracts and visible on-chain. The team is rewarded for growth, not for launching.

v1 Wind-Down

• v1's liquidity pool is permanently locked (LP tokens were burned at launch). Liquidity cannot be pulled, by anyone, ever. v1 remains sellable throughout the migration window for anyone who chooses not to migrate.
• Deposited v1 is held untouched during the window and sold only after it closes. 100% of the proceeds are added to v2 liquidity. The team pre-funds the holder allocation out of pocket and takes nothing from the sale. After the deadline, v1 is vestigial: no support, no buybacks, no development. Focus moves entirely to v2.

What $KARMA Is Not

$KARMA confers no equity, dividend, revenue share, or governance rights in any Karma company. The flywheel is a supply-and-rewards mechanism; all figures describe mechanisms, not price expectations. Nothing here is investment advice.

Anticipated timeline

1. Wed July 15
   Snapshot #1 taken (slot 433159328, hash published). Announcement published.
2. Thu July 16
   Migration portal opens 14:00 Dubai (10:00 UTC) at migrate.trykarma.app. Snapshot #2 at 20:00 UTC (pre-launch cutoff; deposit before it to be in the launch distribution).
3. Fri July 17
   v2 launches on Robinhood Chain via Virtuals. The 20% holder pool is reserved at launch. Proof links published.
4. Sat July 18
   First airdrop: v2 sent to everyone who deposited pre-launch, within 24 hours after launch. Later deposits follow on a rolling basis.
5. ~Sep 15 (launch + 60d)
   Migration deadline. Unclaimed pool redistributed pro-rata to migrated wallets. Deposited v1 sold, 100% of proceeds added to v2 liquidity.