Kraken’s Ethereum Layer-2 Ink Network Is Launching a Token

Crypto exchange Kraken’s Ethereum layer-2 network Ink will get its very own INK token courtesy of The Ink Foundation, which is being called an organization independent from the U.S. exchange.

Launched in October of last year, the Ink Network is a layer-2 blockchain powered by Optimism’s OP Stack, making it part of the Optimism Superchain, a collection of Ethereum layer-2s that share infrastructure and security components.

“The Ink Foundation believes the INK token can help underpin a new wave of DeFi on the Ink blockchain, built around concentrated liquidity and cornerstone functionalities,” the Ink Foundation Board of Directors told Decrypt.

Given Ink Network’s connection to the Optimism Superchain, INK will not act as a governance token. Instead, the network will maintain its adherence to revenue sharing with the Optimism Collective and governance via Optimism.

INK will have a fixed 1 billion token supply, and its first use case will center on a liquidity protocol powered by the notable DeFi protocol, Aave.

“The INK token is designed to support the DeFi ecosystem on the Ink layer-2 at the community and application level,” the Foundation Board of Directors said. “From lending to trading and beyond, the Ink Foundation envisions a future where INK powers a robust DeFi ecosystem governed by its users and aligned with their success.”

Early users of the Aave-powered liquidity protocol will be eligible for an airdrop of INK tokens via the Foundation’s “first planned mechanism for distribution,” but further details about tokenomics are still outstanding.

The Ink Foundation declined to share details about the timeframe of the token launch. It’s currently unclear who’s involved in the Ink Foundation.

As a purportedly independent entity, the Ink Foundation is designed to steward the Ink Network and its token moving forward, supporting protocol development and ecosystem growth in the process. However, Kraken itself launched the network, as noted in a blog post last year.

Edited by Andrew Hayward