Currently, 10% of the KyberSwap fees collected from trades through liquidity pools are sent to KyberDAO to be used as voting rewards (the other 90% goes to liquidity providers).
KyberDAO converts the fees collected into KNC tokens which are then distributed as rewards to KNC holders who stake and vote. This aligns incentives between KNC holders and KyberSwap adoption, and allows for a positive loop where KNC holders have the ability to easily stake KNC again for additional voting power and rewards.
The current fee ratio between KyberDAO and liquidity providers was approved by a KIP-8 vote. This fee ratio may change in the future, subject to a new KyberDAO vote. If and when that happens, this article will be updated accordingly.