Kyber Network KNC token update goes live

Kyber Network KNC token update

According to Q2 2020 Katalyst protocol update, Kyber is implementing a dynamic token model where profits can be allocated in 3 different ways.

1. Burn.
2. Distribute to active token holders.
3. Accumulate profit in LP pool.

Protocol update means that: Liquidity providers (“reserve managers”) do not need to hold KNC to earn fees. Currently, LPs need to maintain a KNC balance for fees.

Dapp integrators using Kyber’s API can set their own take rate on Kyber’s network fee.

Currently, Dapp integrators get automatically 30% of 0.25% Kyber’s network fee.

KNC Holders get protocol earnings thru burn AND/OR for staking. Currently, KNC holders are rewarded via burn. 70% of the 0.25% network fee is burnt in KNC.

After the upgrade, KNC holders vote on WHAT PORTION of profits will be:
1. Paid to active KNC holders (only active participants share profit – case Augur;
2. Burnt (all token holders share profit – case MakerDAO
3. Left in pool (distributed to LPs – case Uniswap.

In a well-designed protocol, tokens give their owners both economic and governance rights, similar to traditional company shares.

 

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