The Kyber Network Crystal or KNC tokens is an ERC-20 token that runs on Ethereum.Kyber Network is the application of the Kyber protocol on the Ethereum platform.
It is a fully built on-chain without any off-chain components, and it allows the instant token to token transactions.
Kyber Networks core interacts with a system of reserves such as an automated market-maker on the blockchains and liquidity pools.
It is ranked as the most widely used decentralized finance application on the Ethereum platform in 2019.
The Kyber Network Crystal project was created as an ERC-20 token supporting an integral part of the Kyber Network. Its main function is to put together and connect different stakeholders in the Kyber ecosystem.
Its network runs in an on-chain liquidity protocol that allows decentralized token swaps to be used in different applications. By doing this, it can support value exchange with efficiency in all parts of the ecosystem.
By using the network, it enables the developers to establish financial applications and financial transactions.
The KNC aims to provide a token that can be used anywhere.
KNC allows its holders to play an essential role in the community to build a wide base of stakeholders, facilitate economic flow, and determine the incentive program. Each time a token is exchanged, a small fee is charged, and holders will have the opportunity to vote through the fee model and distribution. This also includes actual decision making.
KyberDAO is a community-supported platform enabling the token holders to participate in governance. They can vote for notable proposals and, in return, will receive Ethereum rewards from the fees collected in trading activities.
Decentralized finance systems will need decentralized liquidity, and Kyber provided the necessary liquidity for the whole ecosystem in the decentralized application.
Kyber 3.0 upgrade will transition Kyber from a single protocol into a hub of purpose-driven liquidity protocols that are catered to different DeFi use cases.
Kyber will launch a brand new liquidity protocol called the Kyber DMM — DeFi’s first automated Dynamic Market Maker.
Support the new architecture and increase the overall value of the network, a proposal to upgrade the KyberDAO and KNC to a new token contract will be made and voted on, with the aim to greatly enhance KNC token’s governance power, create multiple streams of utility, as well as support new liquidity innovation.