New details regarding token burns and scaling efforts have been released by the KuCoin exchange in a Whitepaper co-authored with the KCS Management Foundation. As stated in today’s press release, the document provides a breakdown of the distribution of 90 million KCS tokens in lock-up, as well as other efforts aimed at expanding the exchange’s ecosystem.
The KCS Whitepaper delves into the details of the KuCoin exchange’s aims at scaling the native KCS ecosystem by empowering community members and upholding deflationary economic policies. The latter is to be maintained through the distribution and burning of 90 million native KCS tokens held in lock-up since the exchange’s launch.
The overall deflationary economic policy maintained by KuCoin is aimed at supporting the value of the KCS token and allowing the KCS Management Foundation to perform its functions. The Whitepaper reveals that of the 90 million KCS tokens held in lock-up, 20 million will be burned, which will be extracted from the 65 million held by the founding team. Another 20 million of the 65 million will be distributed among KCS holders as incentives. Early investors will keep 18 of the 25 million tokens in lock-up, with the gradual release over 5 years. 7 million KCS of the early investor’s 25 million will be donated to the KCS Management Foundation, along with another 25 million from the 65 million held by the founding team.
KuCoin strives to concentrate its development vector on the expansion of Web3 services and projects. The endeavor is to be maintained through the launch of a payment system, ownership right support for NFTs, management and transaction services, as well as metaverse environments and DIDs. The self-circulating KCC ecosystem and the KCS Management Foundation are intended to play crucial roles, according to the exchange’s updated strategy.
“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,” said Johnny Lyu, CEO of KuCoin on KCS.
The KCC lies at the heart of the exchange’s efforts at establishing a system that empowers users and KCS token holders while acting as a hub of technological and business innovation. Partnerships established between KuCoin and the KCC GoDAO Foundation, investment institutions, angel investors, and representatives of the KCS Holder Community, have resulted in the launch of the KCS Management Foundation. The latter is to act as the governing entity responsible for selecting, funding, incubating, and deploying promising projects promoting Web3 services.
The KuCoin exchange is making considerable traction after seeing the native KCS token appreciate by over 2,000% since the beginning of 2021. The reaching by the KuCoin exchange of the 10 million users benchmark in late 2021 has also contributed to the increase of KCC’s TVL to over $50 million since its launch in early 2021.