KyberDAO has announced the launch of the Katalyst protocol update on the mainnet and the new KNC token economy that makes staking possible.
From now on it will be possible to stake KNC tokens to participate in the governance of the protocol and receive prizes in ETH.
Kyber Network is a DeFi protocol that aggregates on-chain liquidity and facilitates decentralized trading of tokens.
The introduction of the Katalyst protocol update allows it to better meet the liquidity requirements of the DeFi ecosystem and modifies the KNC (Kyber Network Crystal) token model by incentivizing different users to attract more participants to the protocol development.
KNC token owners can now participate in the governance of the platform through a new staking and voting mechanism, allowing them to vote on parameters and protocol changes, thus playing a key role in the development of Kyber Network.
Staking is remunerated with ETH rewards from commissions collected from trading activities on the platform.
Users can already start staking KNC for a week starting yesterday, and will be able to vote on KyberDAO’s first Epoch 1 proposal from July 14th.
There are no minimum or maximum limits to the number of KNC that can be staked, no minimum or maximum duration of staking, no loss of KNC due to penalties, and no node execution is required either.
Moreover, by using the official KyberDAO decentralized platform, users will always have full control and ownership of the staked KNC tokens and can freely withdraw them at any time.
Even KNC owners who do not want to participate in the governance will be able to obtain rewards by delegating their tokens, and thus their voting power, to the operators of the KyberDAO pool who will offer this possibility.
These should soon include StakeCapital, StakeWith.Us, RockX and Hyperblocks, while over time also Trust, imToken, Status, Alpha Wallet, Opera, Enjin, HTC Exodus may join.
The CEO of Hashed, Simon Seojoon Kim, commented:
“With Katalyst, the more active community members participate, the better rewards get returned. Therefore, it will turn more holders into genuine and devoted members of the community”.
Partner of ParaFi Capital, Santiago Roel Santos, added:
“Kyber’s growth trajectory and breadth of integrations across the DeFi stack are impressive, as it evolves to become a liquidity protocol for the ecosystem”.
At the beginning of the month the price of the KNC token was about $1.25, but thanks to this announcement it went up to close to $2 on July 3rd.
In the following days, it retraced slightly, reaching just over $1.60, an increase of almost 30% in a week.