World-leading cryptocurrency exchange KuCoin prides itself on transparency. The exchange has a native token, dubbed KCS, which now has an official whitepaper. The document contains some crucial information, including a burn of 20 million KCS tokens.
The KCS Whitepaper Has Arrived
Issuing a native exchange token has always been the first step in a long-term process for KuCoin. The leading crypto exchange has now made the token’s whitepaper available with the help of the KCS Management Foundation and KCC, the decentralized public chain built by KCS holders and KuCoin’s fan communities.
In the whitepaper, users can see how the teams aim to facilitate the ongoing scaling of the broader KCS ecosystem. Moreover, it highlights critical partnerships and collaborative efforts involving KCS and the KCS Management Foundation. All parties involved seek to accelerate KCS’ value growth. Furthermore, they clarify the distribution plan of 90 million KCS in lock-up, of which 20 million tokens will be burned permanently.
Speaking of the 90 million lock-up, 25 million KCS are held by initial investors. They will retain 18 million tokens, with the remaining 7 million donated to the KCS Management Foundation. The token founders, who hold 65 million KCS, will burn 20 million tokens from their share. Doing so speeds up the deflationary nature of the token and introduces stable price dynamics. The remaining 45 million is used for long-term KCS holder incentives (20 million KCS) and a donation to the Foundation (25 million KCS).
Providing insights into this token distribution is crucial for the KCS token. A 2,000% value increase has been noted since early 2021. part of that success is due to the collaboration with KuCoin and the KCC communities.
Fueling Future Growth
The whitepaper mentions how KCS will build a payment system and Web3 ecosystem, aligning its values with KuCoin’s. Several implementations have been confirmed, including decentralized identifiers (DIDs), NFT ownership rights, Metaverse network platform construction, and management and transaction. KuCoin has, though KuCoin Labs, made various investments in early-stage Web3 projects.
The KCS Management Foundation will serve as the governing entity for the development, investment, decision-making, and applications of KCS. Responsibilities include research, funding, incubation, investment, and resource integration of supported projects. Eventually, the KCS Management Foundation will transition into the KCC GoDAO to empower and facilitate KCS ecosystem development.
KuCoin CEO Johnny Lyu adds:
“KCS will build a bridge between the centralized and decentralized world by connecting KuCoin and the KCC community, and lead the way for the creation of a self-circulation ecosystem with the community support and bring the blockchain from the geeks to the masses”.
Ultimately, KCS is designed to become a self-circulation ecosystem empowering all KCS, KuCoin, and KCC community members through access to services and application-based incentives. The KCC ecosystem has seen solid growth quarter over quarter, resulting in over $50 million in Total Value Locked on the network in Q1 2022.
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