KARMA v2: Migration & Launch

Why v2

Karma has outgrown v1. The app is live (iOS, Android, web) with swaps, perps, Visa cards and EUR/USD accounts, and real volume flowing: $2.5M all-time, $796K 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.

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 genesis valuation and grows with the flywheel and the product. 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. The team pre-funds the entire v1 holder allocation at launch out of pocket. Only after the 60-day window closes is deposited v1 sold. Proceeds first recover that pre-funding; the remainder goes to the ecosystem. Nothing is sold during the window, so the v1 market stays intact and never competes with holders for exit liquidity.
• 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 launch distribution. v2 lands in your registered address at launch on Friday. Deposits made after launch 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 433113780, file sha256 3e01acca2ecf1f5afcdbcd7904858c8472062625f4a96abd148f37d8b60f8478, 1,812 holders, sums to exact on-chain supply), 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 excluded wallet).

OG Loyalty Bonus

The team's allocation and one inactive wallet (~19% of supply combined) don't claim v2. Instead of leaving that unclaimed, it goes back to the community:

• Eligible v1 holders receive a bonus on top of their normal pro-rata claim, drawn from the ~19%.
• The bonus is capped at a 1%-equivalent per wallet; overflow from capped wallets flows down to smaller holders, rewarding the broad OG community rather than concentrating in the largest wallets.
• This is a claim bonus only. No v1 tokens are redistributed; the excluded v1 stays in the migration wallet and simply cannot claim v2.

Exclusions (full disclosure)

• The team wallet (13.93%) and one excluded wallet (5.22%) do not claim v2.
• Their combined ~19% share of the claim pool is redistributed as a loyalty bonus to eligible v1 holders.
• 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. Proceeds first recover the team's pre-funded holder allocation; the remainder goes to the ecosystem. After the deadline, v1 is vestigial: no support, no buybacks, no development. Focus moves entirely to v2.

Anticipated timeline

1. Wed July 15
   Snapshot #1 taken (slot 433113780, hash published). Announcement published. Migration portal open at migrate.trykarma.app (deposit anytime).
2. Thu July 16
   Final testing & preparation. Snapshot #2 at 20:00 UTC (pre-launch cutoff; launch distribution computed after it).
3. Fri July 17, 8am Dubai (04:00 UTC)
   v2 launches on Robinhood Chain via Virtuals. v2 airdropped to everyone who deposited pre-launch. Proof links published.
4. ~Sep 15 (launch + 60d)
   Migration deadline. Unclaimed pool redistributed pro-rata to migrated wallets. Deposited v1 sold (pre-funding recovered, remainder to ecosystem).