Kraken-Incubated Ethereum Layer 2 Network Ink Announces Launch of INK Token
Ink, the Ethereum layer 2 network incubated by cryptocurrency exchange Kraken, announced on Tuesday the launch of the INK token to “drive the future development of on-chain capital markets.” The Ink Foundation, which manages Ink and its ecosystem, stated that it will reward early participants through a token airdrop.
According to the announcement, the Ink Foundation will mint a total of 1 billion INK tokens with a fixed supply, with the minting date and other details to be announced later. This token supply will have a permanent cap and will not be subject to governance changes. The foundation also indicated that the INK token “will not play any role in the governance of Ink Layer-2”; instead, it will mainly be used for liquidity aggregation and to incentivize users to engage with the network’s applications.
Ink is built on Optimism’s Superchain, focusing on creating the best decentralized finance (DeFi) experience, providing users with seamless access and interoperability. The Ink Foundation stated that the first use case for the INK token will revolve around a liquidity protocol powered by the lending protocol Aave’s technology, and they expect this liquidity pool to assist on-chain users and developers by centralizing liquidity sources.
To reward early participants, the Ink Foundation announced that it will distribute INK tokens to users participating in the liquidity protocol through an airdrop, and will implement measures to prevent witch attacks. The foundation also hinted at the possibility of multiple INK airdrops in the future but has not provided specific details, only stating that the token launch will be managed by its subsidiary.
This token issuance plan could help Kraken-incubated Ink challenge its competitor Coinbase’s layer 2 network, Base. Coinbase has repeatedly emphasized that there are no plans to launch a token for the Base network, and the Base team stated that the network will continue to use Ether (ETH) as its Gas fee token. Sources: Related Reports: “What Strategic Thinking Lies Behind Exchanges Like Binance and Coinbase Embracing ‘On-Chain Ecosystems’?”