Kyber Network Announces Plans for ‘Katalyst’ Protocol Upgrade with New Token Model
Major protocol upgrade plans to introduce improvements to liquidity contribution, the KyberDAO, and a new staking mechanism for KNC holders.
Kyber Network, a liquidity protocol that aggregates on-chain liquidity and enables token exchange in any application, has announced plans for Katalyst – a major upgrade to the protocol to better meet the liquidity needs of the entire decentralized ecosystem. The upgrade also introduces changes to the KNC (Kyber Network Crystal) token model to align incentives from different stakeholders and attract more participants to the development of the protocol from the wider community.
Planned to go live in Q2 2020, the Katalyst upgrade will support 3 key groups of Kyber stakeholders – Reserves who provide liquidity to Kyber, DApps who connect takers to the Kyber protocol, and KNC holders who form the heart of the network. This upgrade will roll out in phases and specific details on the changes will be shared at a later date.
Katalyst aims to reduce friction in liquidity contribution, introduce rebates for high-performing reserves (liquidity providers), and allow DApps integrated with Kyber to add a custom spread for flexible rates. This will incentivize greater liquidity and trade volume throughout the network, enabling Kyber to become the single on-chain endpoint required by decentralized finance (DeFi) projects for their liquidity needs.
On top of liquidity optimization, the Katalyst upgrade aims to include a new staking mechanism and the launch of the KyberDAO, a community platform that allows KNC token holders to participate in governance for the first time. KNC holders will be able to stake KNC to vote on various protocol parameters and changes (e.g. network fee allocation towards staking rewards, burning KNC, or rebates for reserves), playing a key role in the direction and success of Kyber Network. In return, they receive rewards from network fees collected from trading activities in the network.
“The token changes in Katalyst significantly improve incentive alignment between token holders, users and market makers. Kyber is one of the most critical projects in DeFi, so it will be exciting to watch this major improvement in the KNC token utility model.”
- Kain Warwick, Founder at Synthetix
KNC holders who do not wish to participate in governance will still be able to earn rewards by delegating their tokens and voting power to staking platforms. Reputable platforms such as Trust Wallet, imToken, RockX Miner, and Hyperblocks have already expressed their support for KNC staking, and existing investors in Kyber Network, such as #Hashed and Signum Capital will also be participating in governance.
“Kyber Network has proven its utility as the most reliable liquidity pool for all the participants in the Defi ecosystem on Ethereum. I believe Kyber will be able to grow more explosively with the introduction of an advanced token model and DAO that provide more incentives for its contributors.”
- Simon Kim, CEO of Hashed
“As the leading liquidity provider with the most number of DApp integrations, Kyber provides substantial value for the decentralized space. Signum looks forward to working with the KNC community to help govern this important protocol and chart its success.”
- John Ng Pangilinan, Managing Partner at Signum Capital
Kyber has processed over $410 million USD (2M ETH) worth of trade volume and more than 500,000 trades since its launch in April 2018. It is the leading liquidity provider in the DeFi space, with close to 100 DApps integrated with its open-source, permissionless protocol.
Through these changes, Kyber is looking to establish a long term virtuous loop where the success of the DeFi space, growth of the Kyber ecosystem, and value creation for KNC holders go hand in hand.
What is Kyber Network
Kyber’s on-chain liquidity protocol allows decentralized token swaps to be integrated
into any application. Using Kyber, developers can build innovative applications, including instant token swap services, ERC20 payment flows, and financial DApps — helping to build a world where any token is usable anywhere.
To date, Kyber supports over 70 different tokens, and powers close to 100 integrated projects including popular wallets MEW, Trust, Enjin, and the HTC Exodus smartphone.
To learn more about Kyber Network, please visit https://kyber.network/
KNC price today | Source: Coinmarketcap
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