The Ink Network, powered by Kraken and based on Ethereum Layer 2, has officially announced the launch of its INK token along with airdrop plans. This move is aimed at increasing competition with the Base network developed by Coinbase.
Goals of the INK Token Launch
According to the Ink Foundation, the launch of the INK token is focused on increasing competition with the Base network. Coinbase representatives have previously stated they have no plans to issue native tokens for their network. Base officials claim that the network will only use ETH for transaction fees.
Characteristics of the INK Token
According to the announcement from the Ink Foundation, the INK token is designed to focus on usage rather than speculation. In a statement shared on Ink's official X (formerly Twitter) account, it is mentioned that INK will be the only token model intended for use purposes only, with expressions including 'No frills. No fake management theater. Aligned incentives from day one.'
Airdrop Plans and Token Usage
The total supply of INK tokens will be limited to 1 billion, and a 'permanent supply cap' will be introduced for the token, which cannot be changed by any governance mechanism. Among the primary use cases for the INK token will be a dedicated liquidity pool on Aave, providing a concentrated source of liquidity to both developers and on-chain users. An airdrop is planned for those participating in this liquidity pool, and the Foundation hinted at the possibility of future airdrops but did not provide specific details. The token launch will be conducted by the Foundation's subsidiary to reduce legal liability.
Thus, the launch of the INK token in the Ink Network and the plans for its airdrop create new competition in the decentralized finance market, which may impact the development of the Ethereum Layer 2 ecosystem.
