We are supportive of the token migration and KNC minting. Although KNC holders will be diluted, new KNC can be used effectively across new growth areas.
Some ideas to consider:
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Specific token allocations: To offset the dilution, the newly minted KNC needs to be used effectively. Before migrating to a new token contract and beginning the minting process, there may be value in clearly outlining how the new tokens will be used through an itemized list (i.e here are the stakeholders that will be rewarded, why, and how much). Instead of having a general pool for the DAO, this gives the minting process more direction from the start and allows the DAO to mint a target number vs. something more arbitrary. This could also alleviate concerns around the token mint.
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One time mint vs. recurring: Recurring KNC minting events may lead to more confusion and unpredictability for token holders. However, a one time large mint allows the community to decide how the tokens will be used initially and provide KNC holders with more predictability, as less tokens will be minted in the future.
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Partial lockup: We have seen some DeFi protocols become “industrial farms” where LPs simply farm and dump the token. Instead, a partial lockup could be implemented in which KNC holders get 1/2 of their KNC upfront and 1/2 their KNC after some vesting period.