Kik Messenger's Kin Token To Use Two Blockchains
Canadian mobile messaging app Kik is planning to make use of two different blockchains in order to power its “Kin” tokens.
Kik, which raised $98 million through an initial coin offering (ICO) last year, said that it will deploy its Kin token on multiple blockchains to enhance liquidity and efficiency within its ecosystem. Kin will be using the Stellar blockchain platform to improve Kin’s accessibility and functionality for digital services. The ethereum blockchain platform, on which the tokens were initially launched will be used for liquidity.
At first, Kik wanted to run its messaging app entirely on ethereum, but found it was often congested, with slow transaction confirmation times and high costs.
“While ethereum provides liquidity for Kin holders, its load times and fees can’t support our needs for day-to-day consumer use,” the company said in blog post. “The addition of Stellar as a second blockchain will allow us to operate the Kin Ecosystem on a faster, more efficient foundation, with low transaction fees — which is necessary for us to achieve the speed and scalability that digital services in the ecosystem will require.”
Stellar will be implemented into Kin’s infrastructure in two phases. First, a set of Stellar-based tokens will be created as separate, different assets from the original ERC20 tokens that are currently in circulation. Users will be able to earn and spend these in digital services that are part of the Kin Ecosystem. Then, these tokens will merge with their ethereum-based counterparts to create a unified currency over two networks.
The company said they plan to roll out the initial Kin2 tokens at the beginning of Q2. The swap mechanism will be complex to develop — likely requiring at least a few months of development work. That means the “hybridized,” swap-able Kin1/Kin2 tokens will not exist until Q3 2018, at the earliest.
“The goal of Kin is to create digital sharing economy where everyone is fairly compensated for the unique value they contribute,” said Ted Livingston, CEO of Kik. “While ethereum provides immediate liquidity for Kin holders, it’s not ready for mainstream consumer usage. Creating a bi-directional blockchain with Stellar will drive mass adoption of Kin by providing faster confirmation times, low transaction fees, and scalability that digital services in the ecosystem require.”
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