The Kin Ecosystem Foundation, an independent, nonprofit governance body for the cryptocurrency Kin, this week announced it will use Stellar to improve Kin’s functionality and accessibility for digital services. Kin transactions will now take place side-by-side on Stellar and Ethereum, unlocking faster transactions for digital services, while continuing to provide liquidity to Kin holders.
“The goal of Kin is to create digital sharing economy where everyone is fairly compensated for the unique value they contribute,” said Ted Livingston, CEO of Kik, a chat app and the first member of the Kin Ecosystem. “While Ethereum provides immediate liquidity for Kin holders, it’s not ready for mainstream consumer usage. Creating a bi-directional blockchain with Stellar will drive mass adoption of Kin by providing faster confirmation times, low transaction fees, and scalability that digital services in the ecosystem require.”
Stellar will be implemented into Kin’s infrastructure in two phases. First, a set of Stellar-based tokens will be created as separate, different assets from the original ERC20 tokens that are currently in circulation. Users will be able to earn and spend these in digital services that are part of the Kin Ecosystem. Then these tokens will merge with their Ethereum-based counterparts to create a unified currency over two networks, while maintaining the integrity of the allocation schedule outlined in the Kin whitepaper.
“There are several barriers to entry that prevent the average consumer from using cryptocurrency in their digital lives,” said Jed McCaleb, cofounder of the Stellar Development Foundation. “Kin simplifies blockchain for mainstream consumers and digital service providers, and we’re excited to work together to drive mainstream adoption of cryptocurrency through scalable, fast and low cost transactions on Stellar.”