# What's Changed?

#### Pre-Minted Amount

We'll pre-mint 2000 KEGG tokens and add all of them to the initial liquidity pool. As compared to layer 1, we pre-minted 1000 tokens, only 200 of which went to the initial liquidity pool, the other 800 KEGGs were burned by the dev team over the course of Layer 1 farming. We decide to make the change for 2 reasons: 1) we need a bigger initial liquidity pool to reduce the price volatility 2) investors were skeptical about the 800 tokens pre-minted to the dev team. Even though we kept our promises and burned all of them, it still created unnecessary anxiety for our investors.

#### Developer Fees

In Layer 1, for every token minted to our investors, the smart contract minted an additional 0.05 tokens (5%) to the dev team. In Layer 2, we'll move this number to 10%. Again, we'll burn this fee opportunistically to counter adverse price movement.

Update: Per the community poll result, dev fees collected from Aug 20th onwards will not be burned. They will be put in a dividend pool that runs from the end of Layer 2 to the start of Layer 3. Investors can stake KEGG in that pool to earn more KEGGs.

#### KEGG Harvested

The most notable change in the Layer-2 smart contract is the tracking of **total tokens harvested**. We display this number in the "Farms & Staking" card on the home screen, where your token balance was in Layer-1 UI.

![L1 (KWIL in Wallet) vs L2 (KEGG Harvested )](https://3765539013-files.gitbook.io/~/files/v0/b/gitbook-legacy-files/o/assets%2F-MdoXRWIAJ7dWpejsZO3%2F-MfbhGOqRJcC99iFgXVA%2F-Mfbym94mf9AZyihIpql%2FL1%20vs%20L2.jpg?alt=media\&token=4c5ea930-cdc6-4b9d-b521-301e176ece80)

"Tokens Harvested" is a counter on the farm tokens minted to your address. Each time you click the harvest button, your "KEGG to Harvest" goes to zero; your "KEGG Harvested" increases by the previous pending KEGG amount.

This is a critical update that reinforces PolyQuail's "layered farming structure." Starting in Layer 2, investors' behaviors will have an economic impact on future farms. Investors who have harvested more than X tokens in Layer 2 can enjoy a 25 bps discount in deposit fees in Layer 3. If the same investors were to harvest more than Y tokens in Layer 3, then they will get an additional 25bps fee discount in Layer 4. X and Y are determined during the deployment of the next layer. 

As you can see, we are trying to encourage the following behaviors: 

* **regular participation** - the more layers you have participated in, the more discount you are likely to qualify
* **large deposits** - the more you deposit, the more tokens you will harvest and the more likely you'll qualify for a fee discount in the future
* **staking KEGG tokens or becoming a liquidity provider for KEGG** - KEGG pools take the lion's share of all tokens minted, for people who don't have a lot of capital to deposit, they can still qualify for future fee discounts for staking KEGG or KEGG LPs.

**Example:** 

* Layer 2: 
  * Suppose initially, your pending KEGG is 10 and you have not harvested any KEGG, your stats are as follows:
    * KEGG to Harvest: 10      |      KEGG Harvested: 0
  * Click "Harvest" 
    * KEGG to Harvest: 0         |      KEGG Harvested: 10
  * Send 10 KEGG to another address does not affect either stats 
    * KEGG to Harvest: 0         |      KEGG Harvested: 10
  * Purchase 10 KEGG also doesn't affect either stats
    * KEGG to Harvest: 0         |      KEGG Harvested: 10
  * Wait for a day, now you have more pending tokens: 
    * KEGG to Harvest: 5         |      KEGG Harvested: 10 
  * Click "Harvest" 
    * KEGG to Harvest: 0         |      KEGG Harvested: 15
* Layer 3: 
  * Suppose, the contract specifies that anyone who has harvested more than 12 KEGGs in Layer 2 will get a 25 bps discount in Layer 3. Because you harvested 15 KEGGs in layer2, now your deposit fee is 3.75% for popular pools such as USDC and BTC. \