With the development of the public chain and the growing adoption of blockchain technology, public chains initiated by crypto exchanges are getting more attention. Relying on the advantages of the exchange’s cutting-edge technology team, the exchange public chain has differentiated itself clearly from the rest. KuCoin Community Chain (KCC) has been established for more than a year. As a community-driven chain of the well-known exchange KuCoin, what is the value behind KCC?
An in-Depth Look Into KuCoin Community Chain (KCC)
June 16, 2021 KuCoin Community Chain (KCC), a high-performance decentralized public chain based on EVM, was officially launched by the KCS community. It aims to solve the problems of low performance and high costs of many public chains. It provides users with a safe and stable decentralized experience.
As the public chain of KuCoin, KCC plays a crucial role in the whole KCS ecosystem. On March 29, 2022, KCC co-release KCS Whitepaper with the KCS Management Foundation and KuCoin. The whitepaper pointed out that KCC is the key to the current development of the KCS ecosystem as KCC represents the fundamental infrastructure. Since the release of the whitepaper, the public have also seen a closer connection between KCC and KuCoin. Not only do they often appear together at major events, but KuCoin Labs and KuCoin Ventures have also invested and incubated several projects on KCC, including Torches Finance, MojitoSwap, BitKeep, Idle Stoneage, Klein Finance, and xHashtag. Meanwhile, KuCoin has listed several projects of KCC like MojitoSwap, OpenLeverage, CoolMining, Pikaster, etc. MojitoSwap and OpenLeverage are also the Top 2 in the KCC Unicorn Contest. It provides a more clear development path for KCC projects.
Therefore, 2021 is more like a foundation-building phase for KCC. And since 2022, the KCS ecosystem has provided more and more support to KCC. KCC now works as the bridge connecting the decentralization and centralization of KuCoin. With the continuous development, both are expected to become one-stop service entrances to the metaverse world.
Can you find your favorite projects there? 👀
More than 60+ projects on #KCCEcosystem already🥳
Excited for the future growth🔥🔥🔥 pic.twitter.com/BTT6u38zmR
— KuCoin Community Chain (KCC) Official (@KCCOfficialTW) July 6, 2022
KCC also took a lot of measures to increase the democracy of the Chain and to further achieve DAO governance. On October 21, 2021, the KCC GoDAO Foundation was established. GoDAO gives everyone an equal opportunity to join the community and grants them the right to vote for important decisions. With the further development of the KCC ecosystem, KCC will delegate power to KCS holders and contributors, empowering them to govern and serve themselves, and to build a more efficient, autonomous, and community-driven KCS ecosystem.
Besides, KCC enabled the KCC Validator Election on June 16, 2022, aiming to further improve the stability and decentralization of the KCC ecosystem. The KCC Validator Election does not limit the number of participants. Organizations or users can apply and become candidates. The KCC active validators are node candidates with governance rights. They are powered by the blockchain network by processing transactions and signing blocks. Active validators can receive the gas fee revenue on KCC. The KCC Validator Election will dynamically select 29 nodes to become active validators based on the amount of KCS that nodes staked. Users can select nodes on the KCC to stake KCS and share the KCC validator block rewards and KCC subsidy rewards. If you are interested in applying for the KCC Validators, you can send an email to the official KCC email address (firstname.lastname@example.org) for the application link and more details.
In general, KCC Validator Election is a major adoption of the POS mechanism. But on top of POS, it gives the current node enough rights. By enjoying the benefit of gas fee dividends, investors are more willing to hold their KCS. At the same time, since users voted for validators with only a minimum voting amount of KCS. It further enhances the desire of investors to hold KCS in the unstable market. On the other hand, it can increase the on-chain TVL of KCC, and it will also reduce the circulation of KCS through lock-up, increasing the scarcity of KCS.
KCC Validator Election not only connects the entire KCS ecosystem more closely, adding KCS usage scenarios, but also allows KCS holders to experience the decentralized world at a low cost. You may look forward to more empowerment of KCS in the future.
Furthermore, KuCoin Ventures’ investment in Torches marks KCC’s dedication to building a strong DeFi infrastructure. It is reported that Torches received investment from KuCoin Ventures only 10 days after its launch. Then Torches formed a partnership with KuCoin Wallet on July 9. KuCoin Ventures described itself as to “discover the most revolutionary project of Web3.0 ”. And Torches, as a lending protocol on the KCC, is most likely one of that product.
“Discovering and incubating high-quality projects on the KCC through multiple incentive activities is the core objective of KCC this year. Because of that, we announced a $50 million Ecosystem Accelerator Program at the beginning of the year and held the KCC Unicorn Contest in Q2. We hope to improve the KCC ecosystem from different aspects through project incubation, developer rewards, liquidity support, and ecosystem project competitions/hackathons. With the innovation of blockchain technology, KCC will gradually transit from 1.0 to 2.0 and finally achieve multi-chain compatible 3.0. With the promotion of validator elections, KCC will work with the community to promote the decentralization process and create a community of interests that can benefit both users and protocols. “
Overall, KCC will deeply integrate with KuCoin and the entire KCS ecosystem in the future, pushing multiple incentives and the delegation of on-chain governance rights (KCC Validator Election), and building an exchange public chain focusing on decentralization. You can expect a revolutionary DeFi project coming out of KCC soon or later.
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