Kik Messenger to Launch Kin Token on Two Blockchains
Popular chat program Kik has unveiled plans to deploy its Kin tokens on both the Ethereum and Stellar blockchains, which makes it one of the first cryptocurrencies to feature bidirectional network support.
Kik programmer Gadi Srebnik made the statement in a Wednesday blog post, describing how the company — that raised $98 million through an initial coin offering (ICO) last year — will deploy its cryptocurrency on multiple blockchains to enhance liquidity and efficiency within its ecosystem.
Until today, Kin has functioned as an ERC20 token on the Ethereum blockchain. Frustrated with the network's susceptibility to network congestion, Kik said last year that it would transfer its tokens to Stellar, whose federated consensus model allows for quicker, cheaper payments.
Recognizing that, Kik developed a way to deploy Kin in parallel on both blockchains — without increasing the whole supply. Internal transactions with one digital service will probably utilize the Stellar-based tokens, while external payments and exchange volume will probably occur primarily.
«While Ethereum provides liquidity for Kin holders, its load times and fees can not support our needs for daily consumer usage. The inclusion of Stellar as a second blockchain will allow us to operate the Kin Ecosystem on a faster, more efficient base, with low transaction fees -- that is essential for us to achieve the speed and scalability that digital services from the ecosystem will require.»
When the Stellar-based Kin token was released and fully-initialized — which will occur later this year — users will be able to move their tokens between networks by locking them up on one and unlocking them on the other, presumably via a smart contract mechanism. Developers say that this will help ensure that the tokens maintain a steady value across both networks.
However, Srebnik explained that developing this mechanism will probably take several months. He did not explain whether this would lead to a delay in the release of the standalone Kin program, which will run on the Stellar blockchain.