KuCoin has announced the launch of the KCS Lockup & Cash Back program and a token burn plan.
The IDG supported crypto exchange will start the program on August 1st and, thanks to it, users who decide to freeze their KCS tokens will be able to receive an annual rate of return of up to 50%.
To participate in the program there will be time until August 31st, 2019 (UTC +8) and the period for which it will be necessary to block the tokens will be 90 days. The minimum amount that can be frozen is 200 KCS and the maximum daily amount per person is 10,000 KCS.
There is also a daily maximum limit for the entire platform of 500,000 KCS and if the total amount frozen reaches 5,000,000 KCS users will no longer be able to freeze other KCS.
The annual rate of return for this type of initiative is usually between 6% and 12%, while the KCS Lockup & Cash Back program reaches up to 50% with a minimum of 35%: the earlier the KCS tokens are frozen, the higher the rate of return obtained. All income will be distributed on the day of unfreezing.
In addition, after the tokens have been unfrozen, KuCoin will provide a service for the repurchase of frozen KCS at a price 10% off the average USDT price of the tokens during the day when the user has frozen them. Users will be able to request the repurchase themselves.
The exchange also introduced a burn mechanism for KCS tokens: KuCoin will burn the same number of total KCS frozen by all users and the burn will occur for the first time in December 2019.
KCS is KuCoin’s native token with which it is possible to obtain daily bonuses and discounts on trading fees. After the official release of KuMEX, the cryptocurrency contract trading platform developed by the KuCoin team, the exchange will use 50% of KuMEX’s net revenue to distribute bonuses to KCS holders.
The token can also be used when borrowing on ETHLend, performing real-time transfers via ADAMANT Messenger and playing online on PlayGame.com.