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What is the issuance amount of KNC coins?

Through a fair launch process, Kyber Network issued 226,000,000 KNC tokens in 2017, with 70% distributed via an ICO and the remainder allocated for network operations, ecosystem development, and community rewards.

Nov 21, 2024 at 06:23 pm

KNC Coin Issuance: An Exploration into an Essential Utility Token

Understanding the Issuance of Kyber Network Crystals (KNC)

Kyber Network Crystals (KNC) serve as the backbone of the Kyber Network, a decentralized exchange protocol that facilitates token swaps across various platforms. KNC empowers traders to enjoy reduced transaction fees, secure network operations, and participate in the governance of the Kyber ecosystem.

Issuance Amount and Distribution

Upon its inception in 2017, the Kyber Network issued a total supply of 226,000,000 KNC tokens. Notably, these tokens were not subject to pre-mining or private sales. Instead, they were distributed through a fair launch process that included an initial coin offering (ICO) and subsequent distribution events.

ICO (Initial Coin Offering):
  • Conducted in September 2017
  • Raised approximately $12.5 million
  • Distributed 70% of the total KNC supply (158,200,000 KNC) to ICO participants
Distribution Events:
  • KyberSwap Fee Rewards Distribution (ongoing): Distributes a portion of trading fees to KNC stakers
  • KyberDAO Rewards Distribution (ongoing): Allocates KNC to participants in the KyberDAO governance mechanism

Allocation of KNC Tokens

  1. Network Operations (30%): This portion of tokens is dedicated to incentivizing participation in network operations, ensuring reliability and efficiency.
  2. Ecosystem Development Fund (30%): These tokens support the growth and expansion of the Kyber ecosystem, fostering innovation and adoption.
  3. Kyber Network Community (20%): This allocation recognizes the contributions of the community to the Kyber Network's success.
  4. Investors/Contributors (15%): Individuals and organizations that supported Kyber Network's early development receive a portion of the tokens.
  5. Reserve (5%): This reserve serves to provide stability and support for the Kyber ecosystem in the long term.

KNC Staking and Governance

KNC holders can stake their tokens to earn rewards and participate in the governance of the Kyber Network. Staking KNC contributes to network security and stability while also entitling holders to a share of trading fees generated by the platform.

In the KyberDAO governance mechanism, KNC holders have the power to vote on proposals that shape the future of the Kyber ecosystem. This includes decisions regarding protocol upgrades, token economics, and resource allocation.

Conclusion

The issuance of KNC coins has played a pivotal role in establishing the Kyber Network as a leading decentralized exchange protocol. The fair distribution and token allocation strategy have fostered a strong community and ensured the long-term stability of the platform. KNC staking and governance empower token holders to contribute to the network's success and participate in decision-making.

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