As you are probably aware, we were able to raise $100,000 in initial liquidity for our upcoming $KEX governance token in 30 minutes. This is an amazing show of interest from the Kucoin Community Chain, and something we don’t take for granted.
As we gear up for the launch of $KEX trading, we would like to do a short summary on what $KEX and the entire KuDOS L2 ecosystem is all about.
The KuDOS Multilayer Token concept is simple: We have a Layer-1, or “main” token, $KUDOS. This token gives access to all core functions at the KuDOS ecosystem. As KuDOS is a platform upon which multiple applications can run, there is a need for a Multilayered approach for the different utility tokens associated with said applications.
Take for instance a blockchain-enabled game that launches via the KuDOS gaming platform: It may offer NFTs, or in-game tokens, to power its gamification mechanics. Using KuDOS for this would be expensive and inefficient, since the core token charges a tax on each transaction, and it has a limited supply.
This is where Layer-2 Tokens come into play: You can, for example, farm application-specific tokens using $KEX. And you can farm $KEX using $KUDOS.
Let’s use a simple example to illustrate how this works. Take a fictional game called KuDOS Casino, where you need to purchase an NFT to be able to access a particular game inside the casino. To pay for your bets, you need the KuDOS Casino token, let’s call it $BET.
In this scenario, a KuDOS holder can:
- Farm $KEX with their KuDOS-KCS LP.
- Using $KEX, farm the $BET token.
- Using $KuDOS or $KEX, buy the KuDOS Casino NFTs.
- Play using $BET, and sell their earnings at the KEX DEX.
As you can see, our approach is to build an ecosystem where third-party developers can thrive, while adding value to our holders at the same time.
Besides this usage, $KEX will also be used in our Governance dApp, where the community can issue proposals and decide on the future of the entire KUDOS ecosystem. The more $KEX you hold, the higher your voting power is.
So, what farms will be available upon launch of $KEX?
- Stake KUDOS-KCS LP, gain KEX.
- Stake KEX-KCS LP, gain KEX.
- Stake KUDOS-USDC LP, gain KEX.
- Stake KEX-USDC LP, gain KEX.
- Single-stake KUDOS, gain KEX.
- Single-stake KEX, gain KEX.
Since the entire supply of KEX, or 21 Million Tokens, is programmed to be released over a period of 5 years, farming returns will be very slow. As more and more applications are added to the ecosystem, farming returns might not be enough for people to be able to farm the next Layer-2 Tokens. This creates buy pressure for $KUDOS, which in turn translates to buy pressure for $KEX.
So, when can we expect the next Layer-2 Application launch?
Our next Layer-2 Application is METAVERSE, a blockchain enabled game where you can buy “Land Title” NFTs to own a land parcel at the Metaverse. Inside each parcel, you can build whatever you like, using a “Minecraft”-like style. Additional building materials can be purchased using the $META Token.
Additionally, third-party game developers are already developing their own applications for KuDOS — so stay tuned for further announcements!
