Kin Foundation, which maintains the decentralized protocol Kin, announced that its community members have decided that a large volume of the platform’s native cryptocurrency – the KIN token – will be burned. The announcement was all over cryptocurrency news in India and is likely to have a bearing on live cryptocurrency prices.
Kin has been designed as a cryptocurrency with a special focus on its integration with dApps. The platform pivots around an in-built incentive model where developers are incentivized for creating new solutions with the crypto project.
The vote concluded on July 27, 2023, following a three-week voting period. Earlier on July 6, the founder of messaging platform Kik Ted Livingstone proposed that the Kin platform be completely decentralized.
Currently, two groups hold vast quantities of the KIN token whose total stock is capped at 10 trillion. After the voting process, the Kin Foundation decided to destroy 4.96 trillion of the tokens. Later, Kik would be burning an additional 2.1 trillion KIN tokens. The total quantum of KIN tokens that will be burned together makes up 71% of the coin supply.
Burn Event could lead to an exciting era for Kin: Kik founder
Pitching his proposal before the Kin community members, Livingstone stated that the move would pave the way for Kin to become the sole “meaningful” token powered by Solana to have a fully decentralized model but without a foundation or a website, or inflation. He claimed that if the proposal is accepted by the token holders it could clear the decks for an “exciting era” for the KIN token.
During the voting period, the KIN token witnessed positive price action and gave neck-to-neck competition to the Top 10 cryptocurrencies. According to CoinMarketCap, Kin has a diluted market cap of $175.5 million.
Livingstone has been advocating the burning of trillions of KIN tokens as he deems the move necessary for the “future of the decentralized protocol”.
In his proposal, the Kik founder has stated that Kin for a “decentralized” makeover by burning all reserves of the KIN token and gradually shut down the Kin Foundation. In May, the Kin Foundation executed a test token burn of 1 trillion KIN coins.
‘Burning of tokens could curb inflation of supply’
A Kin community member, using the pseudonym KinShips, claimed that the voting for approving the burning of KIN tokens on such a large scale reflected a “huge milestone” for the Kin platform and can help in “improving” the latter’s attributes.
Community members have reportedly claimed that the token burning would curb inflation of supply and will boost the degree of decentralization.
In October 2020, a US district court directed Kik to cough up $5 million as a fine in connection with a lawsuit filed by the country’s Securities and Exchange Commission (SEC) over a 2017 KIN token sale. The platform was also ordered to give the SEC a 45-day notice before undertaking any KIN token transactions over the next three years.
The ruling prompted debates around regulatory scrutiny and the crypto sector.
Disclaimer: This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
