The Kava 12 upgrade adapts Cosmos DAO technology to the needs of its ecosystem. The new version brings greater control and flexibility over emissions, transparency of financial flows, and the ability to control the total amount of $KAVA in circulation. The new upgrade also allows for the creation of an asset portfolio, and the ability to adjust its composition based on market trends and conditions. The goal is to create a deflationary ecosystem that can survive various market conditions and grow for many years.

Here are the ways in which the Kava12 upgrade adapts the DAO to its needs:

• Clear modular emission control: emissions will be clearly directed to the Kava community pool, where they will be stored. Kava DAO will have greater flexibility and control over where funds will flow for portfolio management, and the allocation of resources for growth initiatives
• The Kava DAO community pool can now hold an asset portfolio. Instead of just a KAVA fund, the community now has control over the asset portfolio, which can be rebalanced based on various trends and market conditions
• Greater visibility of the Kava DAO community portfolio and financial flows. Transparency is essential for a thriving DAO, and the Kava community will now be able to see a summary of the value of the community fund's portfolio
• The ability to burn assets based on usage parameters
• The ability to limit the overall supply, based on Kava DAO management (unlike most Cosmos chains, which inflate indefinitely, Kava can have a predetermined maximum total supply, which ultimately makes it deflationary)
• Real KAVA staking APY will now be fixed, independent of supply, and will be a top parameter rather than fluctuating based on the number of bound tokens. This change will make staking rewards for the community more predictable

Impact

Every Cosmos blockchain has emissions and it was previously unclear where they flowed, or how to utilize them for initiatives. But with the new flexible structure of Kava DAO, these emissions can be continuously used to finance projects and ideas.