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About Kintsugi
Key Points
- Kintsugi is Interlay’s canary network, deployed on Kusama.
- kBTC is a 1:1 Bitcoin-backed asset on Kusama, backed by multi-collateral insurance.
- KINT is the native utility token used for governance votes and transaction fees.
- Kintsugi network launched on October 13th, 2021, with an unlimited supply of KINT tokens.
- 10 million KINT tokens were emitted over the first 4 years, with a 2% annual inflation starting from year 5.
- 70% of the supply is distributed to the community, 10% to a reserve, and 20%
About Kintsugi: The Art of Imperfect Perfection
Introducing Kintsugi Network (KINT): A Novel Blockchain Ecosystem
Kintsugi, Interlay’s canary network, is a pioneering experiment imbued with real economic value, deployed on Kusama. Notably, Kintsugi and Interlay share a common code base, with the key distinction being that Kintsugi is singularly focused on innovation, ensuring it consistently remains at the forefront of feature development.
Interlay is a decentralized network committed to bridging the gap between cryptocurrencies, such as Bitcoin, and decentralized finance (DeFi) platforms, including Polkadot and Ethereum. As a Polkadot parachain, the Interlay network will seamlessly integrate with Cosmos, Ethereum, and other prominent DeFi networks, fostering a new era of blockchain interoperability. Learn more about Interlay’s visionary approach to unifying the blockchain ecosystem.
kBTC, the flagship product of Kintsugi, is a 1:1 Bitcoin-backed asset on Kusama, bolstered by multi-collateral insurance. This innovative asset combines the benefits of an algorithmic stablecoin, pegged to and redeemable 1:1 for Bitcoin, thereby creating a hybrid model. Notably, users only need to have faith in the security of Bitcoin and the DeFi platform they utilize.
KINT is the native utility token, serving as the cornerstone of our ecosystem, and is utilized for:
- Participatory governance votes empower the community to shape the future of the protocol, determining the trajectory of upgrades and the optimal allocation of network resources,
- Transaction processing fees that fuel the network’s operations.
The Circulating Supply of KINT Coins: A Closer Look
The Kintsugi network officially debuted on October 13th, 2021. Notably, KINT boasts an unlimited supply, with an initial allocation of 10 million tokens distributed over the first four years. From the fifth year onwards, a 2% annual inflation rate is implemented.
Seventy percent of the total supply is allocated to the community, comprising airdrops and block rewards, with a breakdown of 30% dedicated to Vault rewards, 5% to governance staking rewards (stake-to-vote), and 35% to the on-chain treasury, governed by the network. A 10% reserve is set aside for network development and community and ecosystem building, managed by the non-profit organization Kintsugi Labs. The remaining 20% is airdropped to the current and future team members, as well as early backers who supported the initial development phase.
The Visionary Founders Behind the Kintsugi Network
Kintsugi is the canary network of the Interlay network, conceived by Alexei Zamyatin and Dominik Harz. The two pioneers crossed paths in 2017 during their PhD pursuits at Imperial College London, where they pioneered the cryptocurrency lab. As esteemed researchers, they have been delving into the intricacies of Bitcoin and Ethereum since 2015/16, amassing an impressive portfolio of over 30 papers that have garnered more than 700 citations. Their work has been showcased at prestigious conferences, including DevCon IV, EthCC, Building on Bitcoin, and Breaking Bitcoin, where they have shared their expertise with the global community.
The pioneering steps towards Interlay and Kintsugi were taken when the XCLAIM paper was unveiled at the Scaling Bitcoin conference in 2018, outlining the inaugural protocol to seamlessly transfer cryptocurrencies like Bitcoin to Ethereum in a decentralized and economically trustless manner. In 2020, the founders translated their research into practice by establishing Interlay. Today, the company boasts a diverse team of 18 professionals, comprising seasoned developers with esteemed backgrounds at Google, Morgan Stanley, Trivago, Accenture, PwC, Worldpay, and Hyperledger.
Kintsugi’s Distinctive Edge: A Harmonious Blend of Innovation and Tradition
Kintsugi’s flagship product is a 1:1 Bitcoin-backed asset on Kusama, bolstered by multi-collateral insurance, effectively rendering it an algorithmic stablecoin pegged to and redeemable 1:1 for Bitcoin, thereby embodying a hybrid model.
What sets Kintsugi’s kBTC apart is its unwavering commitment to trustlessness and decentralization, ensuring a truly autonomous and democratized experience.
Protected by Insurance. Vaults safeguard collateral on the kBTC parachain in a diverse array of digital assets, leveraging a multi-collateral system inspired by MakerDAO. In the event of Vault misbehavior, their collateral is penalized and users are reimbursed. Radically Open. Anyone can assume the role of a Vault and contribute to the security of kBTC at any time.
Consequently, as a kBTC holder, you are assured of the following guarantee: You can always exchange kBTC for BTC or receive reimbursement in the collateral currency at a favorable rate.
In the event of a Vault malfunction, you will be compensated from the Vault’s collateral, ultimately resulting in a profitable trade between BTC and the collateral asset(s).
Upon inception, DOT will serve as the primary collateral. However, in the medium to long term, we envision expanding this scope to encompass stablecoins or diversified token sets, thereby enhancing overall stability.
In summary, to establish trust in interBTC, you simply need to:
Place your trust in the unwavering security of Bitcoin. This means having confidence that Bitcoin blocks are irreversibly confirmed after a certain number of verifications. While the bridge suggests a minimum of 6 confirmations, users and applications are encouraged to adopt even more stringent thresholds for added assurance.
It is essential to have faith in the security of Kusama or the chain on which you are utilizing kBTC, a fundamental assumption shared by all applications built upon Polkadot.
Associated Resources:
Delve into the world of Interlay, Kintsugi, and interBTC, and discover the intricacies of these innovative solutions.
Discover the intricacies of wBTC, a centralized asset backed by the value of Bitcoin.
Embark on a journey to demystify the world of cryptocurrency with Alexandria, CoinMarketCap’s comprehensive educational hub, where you’ll discover a wealth of information tailored to enlighten and empower.