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Koii is a decentralized protocol, meaning that anyone is free to fork the code and build their own version for a specific purpose. In our first implementation, the settlement layer provides payments processing and dispute resolution services to support the compute economy, while providing a historical ledger. Since the settlement layer is decentralized, there is no central ownership body, and following from the examples of Bitcoin, Ethereum, and Solana, a tokenized model was implemented to ensure bad actors can be appropriately penalized. Transaction fees paid in KOII tokens control how data is added to the network, preventing a bad actor from flooding the system with spam.

Note: The token does not confer governance rights, nor does it provide any ownership of the system. Ownership of tokens does permit a community member to run either a K2 node or a task node, and provide services to the network.