KuCoin recently released the KCS White Paper with the KCS Governance Foundation and KCC outlining key details about its native KuCoin Token (KCS). Considering that KuCoin and KCC will empower the development of the KCS ecosystem, KCS has already burned 20 million KCS, which is a new milestone for KCS.
Given the importance of this move, we’ll take a quick look at KCS (KuCoin Token), its potential, KCC and what this move means for you as a trader.
But before we dive into the details, if you’re new to KuCoin, check out our review of the exchange to build an understanding.
KCS White Paper and Administration
The white paper outlines all the basic details about the KuCoin Token (KCS), as well as the company’s grand vision for the entire ecosystem and how it fits into the larger cryptocurrency space.
Meet KCS and KCC
KuCoin Token (KCS) is KuCoin’s native token, which was introduced in 2017 as a profit sharing token, allowing traders to capture value from exchanges. KCS is a deflationary digital asset that achieves its deflationary structure through regular monthly repurchase and destruction from the secondary market.
In addition, the initial supply of KCS is capped at 200 million pieces, and it is planned to stabilize its final supply at 100 million pieces through a repurchase and burn mechanism.
KCC is jointly built by the fans of KCS and the fan community of KuCoin. It is a decentralized public chain compatible with EVM and high performance.
However, its purpose is to solve the problems of low performance and high cost of the public chain, and to provide community users with a faster, more convenient and lower-cost experience.
KCS White Paper
KuCoin, together with the KCS Management Foundation and KCC, jointly released the KCS white paper. KCC is a decentralized public chain built by KuCoin’s fan community and holders of KuCoin’s native token KCS.
“KCS will build a bridge between the centralized world and the decentralized world by connecting the KuCoin and KCC communities, and lead the creation of a self-circulating ecosystem with community support, so that the blockchain can go from geeks to the masses” – KuCoin Chief Executive Johnny Lu.
The KCS White Paper focuses on the expansion of the KCS ecosystem and summarizes key collaborations between KCS and the KCS Governance Foundation.
The mechanism for accelerating the growth of KCS value is expounded, and the lock-up distribution plan for 90 million KCS is clarified, of which 20 million KCS will be permanently destroyed. After the release of the white paper, 20 million KCS were destroyed on March 30.
The KCS white paper also emphasizes that KCS will build a payment system and a web3.0 ecosystem to empower KuCoin’s web 3.0 strategy. Learn more about the white paper here.
KCS use cases and burning
KCS Bonus is considered one of the best ways to earn passive income. Users who hold more than 6 KCS can receive daily dividends, which come from 50% of KuCoin’s daily transaction fee income. KCS Bonus is a unique incentive mechanism for KCS holders and KuCoin ecosystem builders. The reward amount that users can get depends on the amount of KCS held and the trading volume of the KuCoin exchange.
In addition to being distributed as dividends, KCS, as a utility token, is also used to pay transaction fees on the KuCoin exchange, allowing users to enjoy discounts of up to 20%.
Use cases for KCS also include participation in token sales on KuCoin Spotlight, and LockDrop/BurningDrop on the KuCoin Earn platform. But that’s not all, as the KCS token also serves a range of other uses on the platform.
For example, KCS holders can become KuCoin VIPs and users no longer need to have huge BTC trading volume to unlock reduced maker and taker fees.
KCS can also be used as a payment method for shopping, hotel reservations, gaming equipment, and more.
KuCoin announced that “Empowering KCS” will be the top priority of KuCoin and making KCS a killer product rather than a simple token, which will surely further enrich the benefits that KCS holders can get. In the long run, KCS is the key to the entire KuCoin ecosystem.
In addition, as the underlying fuel and general token of KCC, KCS will be used as a gas fee to empower projects based on KCC. The KCC ecosystem will aggregate various types of projects and platforms. This includes DeFi, NFT+, games, Web3.0-related application projects, etc., which will increase the decentralized application scenarios of KCS and further enhance its intrinsic value.
All in all, KuCoin is the top 5 cryptocurrency exchange by trading volume (over $5B in daily trading volume) and has a strong presence internationally. KCS has great potential and is the key to the entire KuCoin ecosystem.
In addition, as KCC’s utility token, KCS will flourish as the KCC ecosystem grows and more and more KCC-based projects emerge. We look forward to seeing a bright future for KCS.
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