Kraken Unveils INK Token For Its Ethereum Layer-2 Network
By: Isha Das
The Ink Foundation has announced the introduction of a native token, INK, for Kraken's Ethereum layer-2 network known as Ink. This significant development aligns with the foundation's vision to bolster user-run liquidity on the Ink network. The foundation plans to mint a total of 1 billion INK tokens, setting a permanent supply cap, to support this initiative. Additionally, after completing the necessary audits, the foundation will disclose the mint date and contract address, which will also detail the eligibility process for the airdrop of these tokens.
INK tokens play a crucial role in incentivizing and allocating resources for protocols deployed on the Ink rollup, yet they do not affect the rollup's technical settings, which are governed by the Optimism Superchain framework. The distribution of INK will be facilitated through an airdrop paired with a liquidity protocol powered by Aave. This protocol serves as the initial component of Ink's DeFi stack, laying the foundation for lending and trading functionalities.
Kraken launched the Ink network on October 24, 2024, as an Optimism-based platform designed for seamless interactions in terms of trading, borrowing, and lending activities without intermediaries. Andrew Koller, Ink's founder, stated their goal to quicken the transition on-chain through an interoperable layer-2 network, with a planned developer testnet and broad rollout anticipated by the first quarter of 2025.
In an effort to integrate Ink into the Superchain ecosystem, the Optimism Foundation approved a grant of 25 million OP tokens to Kraken. This includes 5 million OP for OP Stack engineering, with the remainder linked to transaction volume goals to recycle fees back to the Optimism Collective. This grant mirrors similar incentives offered to other firms leveraging the OP Stack technology. This collaboration aims to expand DeFi offerings, leveraging innovative solutions for the benefit of enthusiasts and institutional players.
