Our portfolio company Kik announced some big news today.
They are going to decentralize Kik and use a new cryptocurrency called Kin to build a business model around a decentralized Kik and, hopefully, attract other developers to build decentralized communities using Kin as well.
All of this is outlined in the Kin Whitepaper that was published this morning.
Here are the main parts of this plan:
Kin is a cryptocurrency designed to bring people together in a new shared economy.
Envisioned as a general purpose cryptocurrency for use in everyday digital services, Kin will be used for all transactions within the Kin Ecosystem. Implemented on the public Ethereum blockchain as an ERC20 token, Kin will serve as the basis of interoperability with other digital services in the Kin Ecosystem.
Kik will be the first digital service to join the Kin Ecosystem.
Kin will power a digital economy inside of the Kik app. With millions of users, Kik will drive mainstream consumer adoption of Kin, establishing fundamental value for the cryptocurrency. By natively integrating the Kin wallet into the app, it will instantly become one of the most adopted and used cryptocurrency wallets in the world.
The Kin Rewards Engine is an innovative cryptoeconomic structure intended to promote the use of Kin as a common currency.
Through the Kin Rewards Engine, Kin will be introduced into circulation as a daily reward, to be distributed among stakeholders by an algorithm that reflects each community’s contribution to the overall ecosystem. This economic structure will create a natural incentive for owners of other digital services to adopt Kin and become partners in the Kin Ecosystem.
The Kin Foundation will act as the non-profit governance body for the Kin Ecosystem. to build, enhance and monetize those services.
Over time, the Kin Foundation will ensure the delicate transition of the Kin Ecosystem into a fully decentralized and autonomous network.
As I said in the release that went out this morning, we believe cryptocurrency is the next important business model innovation in tech and Kik will be the first mainstream application to integrate a cryptocurrency. This could be a watershed moment for the blockchain sector.