How to Earn KernelDAO (KERNEL) Tokens With Binance Megadrop: An Airdrop Guide

Disclaimer

This guide is for informational purposes only. The token(s) discussed as potential rewards may not have launched yet or may never launch. Users should conduct their own research and exercise caution before investing or signing any transactions. CoinMarketCap is not responsible for any losses or damages that may result from using this information. Never invest more than you can afford to lose.

Binance, one of the largest cryptocurrency exchanges, has a token distribution platform called Megadrop, which aims to provide users with improved airdrop experiences. The latest project to launch through Binance Megadrop is KernelDAO (KERNEL), a re-staking protocol supporting various products including Kernel, Kelp, and Gain.

The KernelDAO ecosystem comes with a suite of products serving different parts of the re-staking market. With Binance planning to list the KERNEL token after the Megadrop is completed, this presents an opportunity for eligible users to earn tokens ahead of the listing. This guide will walk you through the process of participating in the KernelDAO Megadrop, explain what KernelDAO is, and provide important details you should know.

How to Participate in the KernelDAO Megadrop

Binance has designed the Megadrop platform to seamlessly connect its Earn platform with Binance Wallet, creating an interactive experience for users. To participate in the KernelDAO Megadrop, you'll need to follow these steps:

Step 1: Check Your Eligibility

Before proceeding, ensure you're eligible to participate in the Megadrop. Users from certain countries or regions are restricted from participating in either BNB fixed-term products, Web3 tasks, or both. It's important to note that these restrictions may change as local laws and regulations evolve.

Step 2: Log In to Your Binance Account

Access your Binance account and navigate to the Megadrop section. For mobile users, go to [More] - [Megadrop]. Here, you'll find a list of the selected Web3 projects, including KernelDAO.

Step 3: Create a Binance Wallet

To participate in the Web3 tasks of Megadrop, you must have at least one active Binance wallet. If you don't already have one, create a new wallet through the Binance app. Importantly, only wallets that have been created and backed up in the Binance wallet can participate – imported wallet addresses are not eligible.

Step 4: Earn Points Through BNB Fixed-term Products

One way to accumulate points for the Megadrop is by subscribing to BNB fixed-term products on the Binance Earn platform. The longer the subscription period, the higher the points you'll earn. The point calculation is based on:

• The amount of BNB you subscribe
• The duration of your subscription

Your points will be calculated based on the subscription periods, with different multipliers applied based on duration:

• 0 < n < 59 days: "30 Days" multiplier
• 60 ≤ n < 90 days: "60 Days" multiplier
• 90 ≤ n < 120 days: "90 Days" multiplier
• ≥ 120 days: "120 Days" multiplier

Your BNB fixed-term product holdings are measured through multiple random snapshots taken every hour to calculate your average holdings.

Step 5: Complete Web3 Tasks

In addition to subscribing to BNB fixed-term products, you can earn points by completing designated Web3 tasks on the Megadrop page. To access these tasks:

1. Navigate to the KernelDAO project page in the Megadrop section
2. Under the [Quest] tab, you'll find various Web3 tasks
3. Click on a task to see detailed instructions
4. Follow the instructions to complete the task
5. After completion, click [Verify] to confirm your participation
6. Once verified, you'll see a [Completed] tag

Completing all the designated Web3 tasks will not only earn you Web3 task points but also provide you with a multiplier that increases your overall points.

Step 6: Calculate Your Final Points

Your final points for the Megadrop reward calculation are determined by this formula:

Total Score = (Locked BNB Score * Web3 Quest Multiplier) + Web3 Quest Bonus

For example, if your locked BNB score is 1,200, the Web3 quest multiplier is 3, and you earn 50 bonus points from completing Web3 tasks, your total score would be (1,200 * 3) + 50 = 3,650.

Your score will update in real-time on the project page, but it's important to understand that this is not your final score. The actual score will fluctuate based on your daily locked BNB holdings and Web3 quest completion status.

Step 7: Receive Your Rewards

After the participation period ends, the system will calculate your final score and distribute rewards to your Binance spot wallet during the specified distribution period. The rewards you receive will be based on the proportion of your final points to the total final points of all qualified users.

To check your Megadrop rewards, go to [Wallets] - [Spot] in your Spot Wallet after the distribution period.

Understanding KernelDAO and its Ecosystem

Now that we've covered how to participate in the Megadrop, let's delve into what KernelDAO is and why it has gained attention in the cryptocurrency space.

What is KernelDAO?

KernelDAO is a protocol that focuses on re-staking as a transformative force in Proof-of-Stake (PoS) ecosystems. Re-staking enables greater capital efficiency and provides cheaper crypto economic security by unlocking shared security and additional reward generation. The protocol has developed a robust 're-staking stack' on Ethereum that serves as a foundation for building a wide range of new services and middleware.

The KernelDAO ecosystem currently offers three main product categories, each positioned to address distinct market needs within the 're-staking stack.'

The Three Core Products of KernelDAO

1. Kernel

Kernel is a shared security product on BNB Chain that leverages BNB, BTC, and other rewards-bearing assets. Since its launch, Kernel has achieved:

• Approximately $300 million in Total Value Locked (TVL) within a few weeks
• Over 25 ecosystem projects building on its platform
• Hundreds of middleware leveraging re-staking

Kernel serves as the core infrastructure layer of BNB's re-staking stack, enabling simultaneous security provisioning across multiple services with enhanced reward opportunities. Its innovative pooled security architecture significantly reduces the cost and complexity of establishing security guarantees.

The primary benefits of Kernel include:

• For Distributed Validator Networks (DVNs): Access to shared security at 10x to 100x lower cost with immediate network integration
• For Delegators: Earning rewards on assets and unlocking capital efficiency
• For Operators: Increased operator revenue with multi-node validation

According to the roadmap, Kernel plans to expand to multiple ecosystems beyond BNB Chain.

2. Kelp LRT (rsETH)

Kelp LRT is one of the leading Liquid Re-staking platforms on Ethereum, offering instant liquidity and higher reward opportunities on re-staked assets. It has become the second-largest LRT on Ethereum with:

• Approximately $2 billion in TVL
• Over 400,000 unique re-stakers
• Integration with more than 50 DeFi platforms, including major Layer 2 solutions

Kelp's Liquid Re-staking Token (rsETH) is designed to enhance liquidity, rewards, and convenience for the staking ecosystem. It provides several benefits:

• For Re-stakers: Immediate liquidity, simplified risk management, and enhanced rewards
• For Operators and AVS (Active Validator Set): Streamlined partnerships, efficient access to re-staked security, and reduced reward emissions

3. Gain

Gain consists of non-custodial automated Yield Vaults on Ethereum that offer one-click rewards maximizing solutions to users. Since its launch, Gain has accumulated:

• Over $200 million in TVL within a few weeks

Gain represents a sophisticated suite of non-custodial reward vaults that automate diverse reward strategies across DeFi, CeDeFi, and real-world assets (RWAs). Key products include:

• Airdrop Gain Vault (agETH): Achieved over $150 million in TVL, boosting rewards from 4-5 premium Layer 2 airdrops alongside base staking and re-staking rewards
• High Gain Vault (hgETH): Provides optimal risk-adjusted rewards across DeFi leveraging professional management expertise, achieving over $40 million in TVL within a couple of weeks after launch

The core benefits of Gain include:

• Automated deployment: Reducing complexity and enabling convenient rewards management
• Professional Management: Unlocking institutional-grade reward strategies through a unified platform
• Composability: Liquid vault tokens maximize capital efficiency and additional reward opportunities across DeFi

According to its roadmap, Gain plans to expand into Bitcoin and RWA-based targeting multi-trillion-dollar potential.

KERNEL Token Details

The KERNEL token serves as the unified governance token across the three product offerings of the KernelDAO ecosystem.

Token Metrics

• Token Name: KernelDAO (KERNEL)
• Maximum Token Supply: 1,000,000,000 KERNEL
• Total Token Supply: 1,000,000,000 KERNEL
• Megadrop Token Reward: 40,000,000 KERNEL (4% of total token supply)
• An additional 40,000,000 KERNEL will be distributed in batches to Hodler airdrops six months after the spot listing
• Initial circulating supply when Binance lists the token: 162,317,496 KERNEL (16.23% of total token supply)

Token Utility

The KERNEL token has several utilities across the ecosystem:

• Kernel shared security: Staked KERNEL tokens can be used as economic security for applications building on the Kernel platform
• Slashing Insurance: Staked KERNEL tokens provide insurance against rsETH slashing events and earn a share of protocol rewards in return
• Governance: Participation in all governance decisions related to the Kernel platform, fees, slashing conditions, AVS selections & rebalances, operator-related proposals, and more

Token Distribution

The KERNEL token has a user-centric distribution model with the majority of the token supply (55%) allocated to users and the broader community. The distribution is capped at 1 billion tokens.

Differences Between Megadrop and Launchpool

It's worth noting the differences between Binance's Megadrop and Launchpool platforms:

• Megadrop allows participation through BNB fixed-term products or Web3 tasks, while Launchpool requires users to stake tokens (BNB, BUSD, or other specified tokens)
• Megadrop rewards are calculated based on a points system that considers both BNB fixed-term product subscriptions and Web3 task completion, while Launchpool rewards are calculated based on the number of tokens staked
• Users participating in Megadrop through BNB fixed-term products automatically qualify for Launchpool rewards without the need to manually redeem their BNB assets from BNB Locked Products