What Is KuCoin Token (KCS)?
KuCoin token, also known as KuCoin Shares (KCS), is the native token of KuCoin, which is a crypto exchange based in Hong Kong. It’s a hybrid exchange that incorporates features of both centralized and decentralized exchanges. The exchange was launched in 2017. However, the KuCoin company was founded in 2013 by Michael Gan.
The KuCoin token is created on the Ethereum blockchain, based on the ERC-20 token standard. Because of that, most Ethereum-based wallets support KCS coins. If you want to know the current (or previous) KuCoin token price, check out the KCS price chart above.
Overall, KCS tokens can be considered the driving force of the whole KuCoin ecosystem. It’s planned to employ them in future products of the KuCoin ecosystem including KuChain, KuCoin decentralized exchange, and others.
The KuCoin network is secured by using the standard encryption protocol. The protocol encrypts user data and data transfers, which means that the data cannot be viewed by other users. Besides, KuCoin employs a multi-cluster and multi-layer architectural framework. This framework supports multiple transactions at once while maintaining system stability.
The Purpose of KuCoin Tokens
Since KuCoin tokens are the driving force of the whole KuCoin ecosystem, they have more than one use case.
Firstly, KCS coins are used to cover the KuCoin exchange’s trading fees. By using KCS tokens, traders are able to get up to 80% discounts on trading fees.
Secondly, KCS coins are used to pay dividends. The KuCoin ecosystem has a special dividend program called the KCS Bonus. It's thought to be among the greatest methods for generating passive income. The dividends are paid by subtracting 50% of the daily income generated by KuCoin's trading fees. The potential size of the rewards users can receive depends on the quantity of KCS held and the trading volume on the KuCoin exchange.
Furthermore, in order to participate in the KuCoin Spotlight token sale and the LockDrop/BurningDrop on the Pool-X platform, KCS tokens are required.
Besides that, KCS crypto assets allow users to upgrade their status to KuCoin VIP. This, essentially, grants them access to the lower market maker and market taker fees without engaging in a significant amount of BTC trading.
Lastly, KCS tokens can also be used to pay for a variety of things, including clothes, food, video game equipment, accommodation reservations, and much more.
Again, make sure to check the KCS price chart to see the live KuCoin token price.
Tokenomics of KuCoin Tokens
In 2017, the initial KCS coin offering (ICO) took place. During the ICO, 200 million tokens were distributed. Half of the initial supply was dedicated to investors. The remaining supply was distributed between founders (with a four-year vesting period), as well as advisors and early investors (with a two-year vesting period).
However, the KuCoin team employs a buyback-and-burn mechanism to reduce the supply of tokens in circulation. Their main aim is to burn the tokens until only 100 million KCS tokens are left. How does the burning mechanism work? In essence, the KuCoin team buys a portion of KCS tokens from the market and immediately burns them. The burn is completed every quarter. The burned amount depends on the KuCoin Exchange’s trading volume.
The KuCoin token price tends to fluctuate, so keep that in mind if you're intending to buy KCS tokens. This occurs as a result of how easily variations in the entire crypto market can affect the KCS price, alongside the prices of other digital assets.
