# Kaia to Burn 4.9 Million Unpaid Tokens and Expand Stablecoin Reward Program

- URL: https://stocks.freetheai.org/news/kaia-to-burn-4-9-million-unpaid-tokens-and-expand-stablecoin-reward-program-8e7db9
- Published: 2026-10-14T02:20:55Z
- Category: crypto; sentiment: mixed; impact: medium
- Symbols: [CRYPTO:KAIAUSD](https://stocks.freetheai.org/symbols/CRYPTO-KAIAUSD)
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The Kaia DLT Foundation announced plans to destroy more than 4.9 million unpaid tokens under its Contribution Reward system, with the initial burn set for Oct. 21. A total of 4,905,146 Kaia (CRYPTO:KAIAUSD) tokens from the first two settlement rounds will be removed from circulation, including 2,463,579 KAIA on Oct. 21 and another 2,441,567 KAIA in November. Additionally, the network is adding Japanese yen stablecoin JPYC to its list of eligible reward assets alongside Tether.

The Contribution Reward mechanism, introduced in July, replaces a fixed distribution model by awarding tokens based on verified network performance. With a monthly budget of 2.5 million KAIA, any unearned rewards are destroyed rather than returned to the foundation. By expanding reward eligibility to JPYC held in Unifi wallets alongside existing staking requirements of 10 KAIA per dollar of stablecoins, the network aims to boost participation across Asian cryptocurrency markets while permanently curbing token inflation.

Moving forward, the foundation plans to burn undistributed rewards at the close of each settlement cycle, known as an Epoch. Investors can track transaction records and cumulative token burns in monthly operations reports published on the network's governance forum. Today, KAIA traded down 3.72% at 0.04512 USD following the news.

## Key points

- Kaia DLT Foundation will burn 4,905,146 unpaid KAIA tokens from its first two settlement rounds.
- The first token burn of 2,463,579 KAIA occurs on Oct. 21, followed by 2,441,567 KAIA in November.
- Japanese yen stablecoin JPYC will join Tether as an eligible asset for contribution rewards starting Oct. 21.
- Undistributed funds from the 2.5 million KAIA monthly reward budget are burned at the end of each Epoch cycle.

## Questions and answers

### When will Kaia start burning unpaid KAIA tokens?

Kaia will begin burning unpaid tokens on Oct. 21, starting with 2,463,579 KAIA from the first settlement round. A second burn of 2,441,567 KAIA is scheduled for November.

### What is changing with Kaia contribution rewards?

Starting Oct. 21, Japanese yen stablecoin JPYC will be added alongside Tether as an eligible asset for contribution rewards. Additionally, any unallocated rewards from the 2.5 million KAIA monthly budget will be permanently destroyed.

### How can investors track Kaia token burns?

Kaia plans to disclose transaction records and cumulative burned amounts in monthly operations reports published on its governance forum at the end of each settlement cycle.