The Ethereum Layer-2 network Ink, incubated by the cryptocurrency exchange Kraken, announced on Tuesday the launch of the INK token to 'drive the future development of on-chain capital markets.' The Ink Foundation, responsible for managing Ink and its ecosystem, stated that it will reward early participants through token airdrops.
According to the announcement, the Ink Foundation will mint 1 billion INK tokens with a fixed supply, with the minting date and other details to be announced later. This token supply will have a permanent cap and will not be changed through governance. The foundation also stated that the INK token 'will not play any role in the governance of Ink Layer-2'; instead, it will mainly be used for liquidity aggregation and incentivizing users to use the network's applications.
Ink is built on the Superchain of Optimism, focusing on creating the best decentralized finance (DeFi) experience, providing users with seamless access and interoperability. The Ink Foundation stated that the first application scenario for the INK token will revolve around a liquidity protocol driven by the technology of the lending protocol Aave, and they expect this liquidity pool to assist on-chain users and developers by centralizing liquidity sources.
To reward early participants, the Ink Foundation has stated that it will distribute INK tokens to users participating in the liquidity protocol through an airdrop and will take measures to prevent witch attacks. The foundation also hinted that there may be multiple INK airdrops in the future, but has not provided specific details, only stating that the token launch will be managed by its subsidiary.
This token issuance plan may help Ink, incubated by Kraken, challenge its competitor Coinbase's Layer-2 network Base. Coinbase has repeatedly emphasized that there are no plans to launch a token for the Base network, and the Base team has stated that the network will continue to use Ether (ETH) as the gas fee token.
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