Kyber Network’s native token KNC has extended the aggressive rally that started to accelerate at the end of June. On Friday alone, the token has gained over 27% against the US dollar. The surge comes several days ahead of Kyber Network’s next protocol update planned for July 7.
KNC Hits Highest Level in 2 Years
On Friday, KNC has become the best performing cryptocurrency in CoinMarketCap’s top 100 list by a margin. It gained 27% and it’s trading at $1.89 at the time of this writing. The token has consolidated on the 33rd place in the list of largest cryptocurrencies by market cap. During the last seven days, KNC has gained over 62%.
If you still haven’t heard about Kyber Network, it is an Ethereum-based blockchain project that offers a decentralized token swap protocol. In other words, users can quickly convert Ethereum tokens back and forth almost instantly. For this, Kyber Network holds ERC20 tokens in its reserve to enable seamless swaps.
So, Why the Fuss About Kyber Network?
The buying pressure has to do with Kyber Network’s next upgrade called Katalyst, which will culminate with the launch of the KyberDAO platform.
While the update will introduce many new features, investors are excited about the introduction of a new staking option thanks to a partnership with Singapore-based blockchain firm StakeWith.US. The upcoming staking mechanism, which will go live on July 14, will allow KNC holders to stake their tokens on KyberDAO by taking part in the voting process and secure ETH rewards for doing so.
Kyber Network explained in a recent blog post that 65% of the collected network fees would go to staking rewards.
“There is NO minimum or maximum KNC that needs to be staked, no hard lockup period, no ‘slashing’ (no loss of KNC due to any penalty), and no running of nodes required,” the statement reads.
KyberDAO operations will be split into so-called epochs. Each epoch will last for two weeks, except for the one-week-long genesis Epoch 0 that starts on July 7.
It will be hosted on Kyber.org, a mobile decentralized application (dApp) that can be accessed from any platform with Web3 connectivity. Think about dApp browsers in digital wallets like Enjin, imToken, Trust, Status, or web browsers like Opera and Brave.
The protocol upgrade is about to reduce friction in liquidity contributions and to offer incentive rebates for liquidity providers.