In order for a blockchain network to survive long-term, it absolutely needs a reliable token economic model. KITE's approach is quite interesting—it doesn't let the native token KITE carry all functions from the very beginning, but instead chooses a phased rollout. This choice itself reflects the project's consideration of sustainable development.

Let's start with the initial phase. During this stage, KITE is mainly used for ecosystem participation and incentives. Developers can earn rewards through it, node operators can cover their costs, and early users can benefit as well. The core goal of this phase is simple: to get more AI agents and applications running on the network, creating genuine transaction demand and data flow. It's not about creating false prosperity, but about accumulating real network activity.

Moving forward in time, KITE's functionality begins to expand. Staking, governance, transaction fees—these features will be gradually introduced. The staking mechanism can enhance network security while providing stable incentives for long-term participants. The governance feature allows token holders to have real say, enabling them to influence protocol parameters, upgrade directions, and key decisions. As for the transaction fee mechanism, it links the token's value to the actual usage of the network— the more you use it, the higher its practical value.

Why adopt this phased approach? The most direct benefit is to avoid the over-financialization issues seen in early stages. If all functions are opened up at once, speculative capital can flood in, causing huge price volatility, and ultimately, genuine contributors may get caught in the turmoil. Conversely, a phased approach allows the token's value to be more driven by real usage needs rather than market sentiment.

In the long run, whether KITE can establish stable value depends on its close linkage with the prosperity of the AI agent economy. In other words, it relies not on market hype, but on the genuine growth of AI-related applications and transactions on the network.

In a network where AI is a core participant, the role of the token is not just a tool for incentives. It also serves as a crucial medium for coordinating interests among different stakeholders and aligning incentives. KITE's design logic is built on this foundation—it aims to balance the needs of short-term participants with room for long-term governance. Only in this way can it provide the necessary support for the stable evolution of the network.