The Kin Ecosystem Foundation, a nonprofit governance body for Kin cryptocurrency, announced that it will build its own blockchain based on Stellar and will continue to leverage Ethereum blockchain.
Why is it notable?
- Kin describes itself as a project pioneering a new model where crypto is to be used as much and as frequently as possible;
- Kin used Ethereum to create and distribute 10 trillion Kin tokens last fall;
- The foundation will continue to use Ethereum blockchain for security and liquidity to holders of the Kin token. Kin also would be on Stellar in order to serve consumers and take advantage of scalability.
Why has Kin chosen a Multi-Blockchain Strategy?
- As reported by the company, it “decided to have the best of both worlds”.
- According to Kin, scaling and unpredictable fee rates were two main issues that lead to the conclusion that an alternative blockchain should be considered.
- Stellar solved Kin’s issues with scale and fee predictability. But Ethereum has its limitations with liquidity.
- This means the foundation plans to create a unified currency over two networks.
By Ekaterina Ulyanova