A New Proposal For The Future of Kin: To Burn Seven Trillion Tokens
There’s a new development in the saga of Kin: a proposal on Reddit to burn seven trillion tokens to fully decentralize the cryptocurrency.
After a promising rebrand in late 2022, the Kin Foundation fell apart in a bitter dispute between the foundation and the founder of Kik Interactive, Ted Livingston. The Kin Rewards Engine was put on hold, and the future of Kin was uncertain.
The proposal, put forth by Ted on Reddit, suggests a significant token burn—approximately 4.96 trillion Kin tokens from the Kin Reserves held by the Kin Foundation. This follows a test burn of 1 billion Kin, which seems to have sparked this new initiative. As part of the deal, Kik Inc. has expressed readiness to burn an additional 2.1 trillion of their own Kin tokens if the proposal garners approval.
Let’s break this down: a token burn reduces the total supply of a cryptocurrency. With a decrease in supply, each remaining token may increase in value. If both the proposed burns go through, the total supply of Kin will be cut down from 10 trillion to about 2.94 trillion, with the added benefit of reducing the massive centralization of Kin tokens.
What Does This Mean For The KRE?
The initial vision for Kin revolved around the Kin Rewards Engine (KRE). The KRE was designed as a reward system for developers, incentivizing them to incorporate Kin into their apps.
However, the KRE didn’t work as planned and was put on hold in February 2023. The KRE was supposed to be funded by the Kin Reserves, but with the foundation’s imminent dissolution, these funds no longer serve a purpose.
The proposal suggests complete decentralization of Kin. Ted claims that this will free Kin from governance by a centralized foundation, something that many cryptocurrencies are subject to. Going fully decentralized could provide increased safety from a regulatory standpoint.
This would make Kin the only meaningful cryptocurrency on Solana that is fully decentralized, with no inflation, no foundation, and no website. This could be a new and exciting era for Kin.
Ted Livingston, Founder of Kik Interactive
Kin Holders To Vote
The decision now rests with Kin holders, who have been asked to vote on this proposal. Votes are collected via two specific addresses for those in favor and those against.
The voting method is token-weighted—meaning the number of tokens in the sending address will dictate the weight of the vote. The voting period is set to close on July 27th at 10am EST.
It’s important to remember that this article merely outlines the information presented in the Reddit post. Bullshit Network doesn’t endorse either side of the proposal, but in the interest of full disclosure: the author of this article is a Kin holder and has voted in favor of the proposal.
You can read the original Reddit post here to get a more in-depth understanding of the proposal and the addresses for voting.