Read this article on bsc.news Kaspa Dollar (@KaspaDollar) has released a working whitepaper for $KSD, a proposed stablecoin backed by $KAS. According to its developers, KAS would be the only
Kaspa Dollar (@KaspaDollar) has released a working whitepaper for $KSD, a proposed stablecoin backed by $KAS. According to its developers, KAS would be the only accepted collateral. That would tie the system directly to Kaspa's own proof-of-work security instead of relying on outside assets.
Under the draft design, users would lock KAS in vaults to mint the stablecoin. Miners would vote on the price feed that keeps KSD near $1, so no third-party oracle would be involved. The developers also say the proposed contracts would carry no admin key and no developer fee. The whitepaper remains open to internal and external review, so details may change.
The model resembles overcollateralized stablecoins already used in DeFi. Users deposit more crypto than the value of the dollars they want to receive. French outlet Cryptoast gives an example: locking $150 worth of KAS would allow a user to issue $100 of the stablecoin.
Weekly Kaspa developer updates describe the initiative, led by @asaefstroem, as backing each dollar of tokens with more than a dollar of collateral. Development, research and an independent audit are still ahead.
CoinMarketCap's summary of recent Kaspa news describes the technical design as a proof-of-work oracle supported by KAS miners to maintain the dollar peg. It adds that the design builds on KIP-21 sequencing commitments and remains a non-live specification.
The proposal follows the Toccata hard fork, which was activated on June 30, 2026. Covenants introduced by the upgrade make it possible to design vaults, smart wallets, tokenized assets and state channels within the Kaspa blockchain. Vault-based collateral of the kind KSD proposes depends on that capability.
Kaspa's smart contract tooling is still maturing. One community tracker notes that Toccata shipped covenants and proof-checks only, with mature DeFi and full app infrastructure still to come via vProgs. KSD would therefore be an early test of how far native DeFi can go on the network today.
The project is also seeking community funding, with a target of 5 million KAS by January 2027. The initiative's own site states that $KDOLLAR is a community fundraising meme token, separate from the KaspaDollar stablecoin development initiative. The same site says no $USDT or $USDC deployment is promised.
KSD remains a proposal. The whitepaper is a working draft, and the audit and production work the developers describe have yet to be completed. Any launch timeline should be treated as unconfirmed.
Sources
CoinMarketCap: Latest Kaspa (KAS) news updatesCryptoast: KaspaDollar decentralized stablecoin fundraiserBitcoin Foundation: Kaspa Toccata upgrade explained
