Saying that it would usher in “a new era for Kyber Network with a host of major technical improvements”, the team had previously mentioned that the upgrade would cement Kyber Network’s position as the liquidity layer in the decentralized finance (defi).
The upgrade will bring several new features to the network, including the KyberDAO, a decentralized governance platform that already will welcome over 72,000 KNC holders. 65% of trading fees will be allocated towards those who stake for governance, 30% towards reserve rebates and 5% for KNC burning. These initial parameters have been settled on, though they are subject to change.
The Kyber Community has also announced the Kyber Community Pool, where KNC holders will be able to stake their tokens and participate in the governance process, as well as be rewarded with a portion of the network fees.
Katalyst was first announced by the team in December 2019, with an agenda to improve liquidity for the defi space, encourage participation from stakeholders and expand “value creation” for token holders. The upgrade is expected to improve usability interaction for dapp developers and liquidity providers.
The release of Katalyst will follow the addition of the KNC token as collateral on the Maker (MKR) protocol, which was approved on June 28. At the time of publishing, Kyber Network has roughly $6.6 million in total value locked in, according to DefiPulse.