CEX tokens have become very important in the cryptocurrency ecosystem. With exchange-based tokens, users enjoy so many benefits, such as discounts on their trading fees and other activities.
However, while virtually every centralised exchange (CEX) has its native token, KuCoin is taking the game to a whole new level.
KuCoin is one of the largest cryptocurrency exchanges globally, with a valuation of over $10 billion. Meanwhile, KCS is the native token of the KuCoin ecosystem. It is KuCoin’s utility token that allows traders to share the growth benefit of the exchange.
But what exactly is KuCoin doing differently with its KCS token? Read on to find out.
1. What is KCS, and how is it related to KuCoin?
Launched in 2017, KCS is the native token of the KuCoin ecosystem. It is KuCoin’s utility token that allows traders to share the growth benefit of the exchange. The initial token supply was 200 million, but KuCoin plans to buy back and burn the tokens until the total circulating supply remains 100 million.
KCS is the native token of the KuCoin ecosystem. KuCoin is a global crypto exchange with more than 10 million registered users. As one of the leading cryptocurrency exchanges, KuCoin offers a wide range of services, including spot trading, lending, futures trading, staking, margin trading, P2P trading, NFT marketplace, and bot trading.
KuCoin has a vast presence globally, with more than 23 local communities in North America, Europe, SEA, Africa and the Middle East, providing users with highly localized services.
KuCoin is home to over 700 projects with 1,200+ trading pairs, including the popular ones like BTC and ETH and the promising projects like BLOK, KDA, ZKT, and MOVR.
Built by the fans of KCS and KuCoin’s fan communities, KCC is a decentralized public chain with EVM compatible and high performance. KCS is used as the only fuel and native token for KCC and can be used to pay gas fees and support the development of projects built on the KuCoin chain.
In May 2022, KuCoin reached a $10 billion valuation after raising $150 million in a funding round. According to CoinMarketCap, KuCoin is currently the third biggest crypto exchange. In 2021, Forbes Advisor named KuCoin one of the Best Crypto Exchanges. In 2022, The Ascent, a Motley Fool service, awarded KuCoin the Best Crypto Exchange and app for enthusiasts.
The crypto exchange uses the size of a user’s KCS holdings to determine a user’s VIP level. The higher the amount of the KCS held, the higher the VIP level. Using KCS to pay transaction fees on KuCoin attracts a 20% discount.
2. How unique is the KCS Bonus program?
KCS Bonus is a unique incentive mechanism for KCS holders and KuCoin ecosystem builders. Users that hold a minimum of 6 KCS tokens qualify to receive a daily bonus, which comes from 50% of KuCoin’s daily trading fee revenue.
3. KCS holders participate in both Spotlight and BurningDrop
KuCoin Spotlight is a platform that serves early-stage crypto projects and their initial token distribution. This platform allows KCS holders to participate in the token sale on the KuCoin platform.
So far, KuCoin has launched 21 Spotlight projects, and more will follow over the coming months and years.
BurningDrop is KuCoin’s fair token distribution platform. Over the years, the platform has supported the token distribution of a wide range of blockchain start-ups, including FTG, PBX, H3RO3S, XCAD, 1EARTH, etc.
To join BurningDrop, KCS token holders will lock a designated amount of crypto assets. Furthermore, users can allocate tokens to increase their computing power for more token rewards. Overall, the the average ROI of projects that were listed through BurningDrop exceeds 8685%.
4. KCS powers KuCoin’s decentralised public chain
KCC is a decentralized public chain with high performance. It features high throughput, low latency, low transaction cost, and satisfactory security and stability. KCS serves as the fuel and native token for KCC. KCS is used to pay gas fees on the KCC.
Since its mainnet launch in 2021, dozens of projects have successfully deployed on the KCC chain, with on-chain TVL approaching $50 million and over 300,000 wallet addresses.
KCC will focus on the following areas:
Build a basic toolchain for the blockchain;
Connect the centralized and the decentralized;
Build a global open developer platform;
Build a decentralized autonomous community;
Build cross-chain interoperability protocols;
Expand performance and capacity to handle the demands for greater scale and performance;
KCC will integrate projects and platforms in various fields, including DeFi, NFT+, games, Web3.0-related application projects, etc. Hence, increasing the decentralized application scenarios for KCS.
5. KCS and its DAO-related transition
The KCS Management Foundation is the entity responsible for the development, decision-making, investment, and application of KCS. The entity comprises the KuCoin core team, the KCC GoDAO Foundation, investment institutions, angel investors, and representatives of the KCS Holder Community.
The KCS ecosystem will continue to evolve. The management will be completely replaced by the GoDAO community in the future.
6. Buyback aimed at deflationary supply
KuCoin buybacks KCS tokens from the secondary market each month and burns the tokens. The exchange allocates 10% of its monthly revenue toward this venture. Over the past four years, KuCoin has completed 29 burns, and a total of 54,120,079 KCS have been burned, worth hundreds of millions of dollars. To further reduce the tokens, KuCoin will introduce the EIP1559 and the KCC fee mechanism of base fee + priority fee.
7. KCS is available on multiple exchanges
As one of the top 100 cryptocurrencies by market cap, KCS is listed on various crypto exchanges. Some of them include KuCoin, MXC, Poloniex, AscendEX (formerly Bitmax) and Probit. However, KuCoin is the biggest market for KCS, with a daily average volume of 20 million.
8. KCS is more than a CEX token
KCS has numerous use cases for the holders. Some of these use cases include;
SwirlPay, a decentralized payment service, supports KCS payments.
PlayGame, a direct-to-play gaming platform, lets users play games with KCS.
KCS can be used to make hotel reservations on Travala, the leading blockchain travel booking platform.
Purchase fashionable products on Print-ted with KCS.
KCS can serve various offline and online payment scenarios via Pundi X.
Use KCS to buy monster card packs on Splinterlands.
Collateralize KCS to borrow US Dollars (USD) and Vietnamese Dong (VND) on Constant.
CoinPayments, a borderless online payment platform, accept payments in KCS.
BetProtocol added KCS as the primary token used on their gaming applications.
9. The future ahead: What’s coming next?
Launch a payment system
The KCS ecosystem will work with the KuCoin Exchange and the KCC ecosystem to launch a payment system that would provide services to hundreds of millions of users. The KCS payment system can connect all projects and be involved in activities such as the KuCoin ecosystem’s transactions, derivatives trading, new coin launches, the KCC ecosystem’s transactions, stablecoins, lending, NFT transactions, and more.
The World of Web 3.0
KCS will play an active role in the development and adoption of the Web3 world. It will do so by exploring and implementing the following areas:
Decentralized Identity Management Decentralized Identifiers (DIDs);
NFT ownership rights, management, and transactions;
Construction of the metaverse network platform, including work, social networking, games, etc.
KCS is the native token of KuCoin, and it’s one of the few CEX tokens that holders can get daily passive income.
Other use cases of KCS include getting a 20% trading fee discount on KuCoin, participating in Spotlight (IEO) and Burningdrop (a new launchpool product), and more.
KCC’s TVL approaches $50 million as more decentralized apps emerge within the ecosystem.
KuCoin wants to make it easier for people to connect to Web3.
While other exchange-based tokens focus on providing essential services such as the ability to pay trading fees, KuCoin has taken the utility of its KCS token to an entirely new level.
The guaranteed daily bonus, the use of KCS within the KCC ecosystem, and leveraging KCS in both Spotlight and BurningDrop programs are some of the few ways KuCoin has made its native token stand out amongst its peers. KuCoin reaching a $10 billion valuation earlier this year means that KCS will play an even bigger role in the ecosystem’s growth over the coming months and years.
Is KuCoin changing how people view CEX tokens? The developments and milestones set by the company show that is exactly what is happening.