Kyber Network is the on-chain liquidity protocol that is used to swap cryptocurrency tokens seamlessly in a decentralized mechanism. Kyber Network protocol also allows developers to build financial-related applications and payment systems on top of its ecosystem.
The vision of Kyber Network is to create an universe where you can instantly use and swap various ERC-20 tokens everywhere without any centralized intermediary. Kyber Network Crystal (KNC) is the native cryptocurrency of Kyber Network. It is the center and the medium of exchange of everything that runs on Kyber.
Underlying Blockchain: Ethereum
Total Supply: 210,509,429 KNC
Smart Contract Address: https://etherscan.io/token/0xdd974d5c2e2928dea5f71b9825b8b646686bd200
Total $ Raised: $52M
Use Cases Quick List:
1. Transaction fees to maintain KyberReserves
2. Commission and referral fees for DApps
3. Network fees
1. Transaction Fees To Maintain Kyber Reserves
KNC is the facilitator of the reserves system in Kyber Network's liquidity network. KyberReserves are operated by third party entities and they have to pay certain amount of KNC to be able to maintain their status as operators in the network. Kyber Network automatically receives these KNC payments from these reserves.
2. Commission And Referral Fees For DApps
All kinds of DApps (decentralized applications) on Ethereum blockchain are able to register and connect themselves into Kyber's liquidity network. These DApps can earn commission for each transaction that happens inside Kyber Network. The commission is paid in the form of KNC.
Not only that, Kyber Network also allows these DApps to earn referral fees (also in the form of KNC) when they can refer new users into Kyber network. The idea here is that Kyber Network will be able to gain more user adoption when there are already satisfied DApp developers and businesses that use Kyber Network.
The great thing about this use case is that there are different categories of DApps nowadays, including DeFi applications, payment systems, decentralized exchanges (DEX), and others. Kyber Network is natively created to work with all of these types of DApps as long as they run on Ethereum.
3. Network fees
Another great use case of KNC is to be used as network fees. All transactions that happen in Kyber Network require a certain amount of network fees. These network fees are collected in the form of KNC. The collected KNCs will then be burned forever to increase the natural demand of the token in the open market.
The hope is that a higher amount of KNC will be used as network fees once Kyber Network itself gets many more active users. These KNCs will then be burned forever and taken out from the circulating supply to give upward pressure on KNC's price.