Kylin Network desires to build a cross-chain platform that will power the data economy on Polkadot. It will be the data infrastructure for Web 3.0 and decentralized finance (DeFi) powered by Polkadot.
As the whitepaper of Kylin Network is released, it outlines various important features of the network. Let me list them for you.
Kylin protocol is based on substrate technology. It adopts the Nominated Proof-of-Stake (NPoS) consensus algorithm, that regulates:
- The token inflation rate
- Block rewards
- Block slash
- Kylin’s on-chain governance
The main reason for inflation is the further issuance of tokens to reward the validators. The inflation rate is adjusted by an automatic algorithm.
Whenever a block is produced on the Kylin mainnet, the system will issue a certain amount of KYL tokens as rewards. The reward size is determined by the real-time inflation rate of the network.
When a validator commits malicious behaviour, such as off-line, double-signing, etc. They will be punished in the form of the confiscation of certain amounts of KYL from staked tokens and nominators’ assets.
To ensure the sustainable development and decentralization of the protocol, a treasury has been set up. It will inspire individuals or teams to contribute to the project.
Any decision regarding the use of treasury funds will be made by Kylin’s on-chain governance forum in the future.
Team and Backers
Their advisors and team consist of financial, technical, and marketing talent coming out of top blockchain projects, schools, and employers including JP Morgan, Columbia University, Wharton, TomoChain, John Hopkins, Beam, Harmony, and Credit Suisse.
Kylin network completed its seed fundraising in November 2020, receiving huge support from nine institutional investors on tech development, capital, future parachain slot auction, project advertisement, and more.
The Kylin Network Mainnet token (KYL) is necessary to power and secure the decentralized data network. The utility and use-cases of KYL include but not limited to:
- Stake to be a Miner: All miners are required to have KYL tokens for staking. Higher stakes equate to a high probability of being selected to fulfill data requests.
- Intermediary of Exchange: KYL will be used to pay as a transaction, query fee, etc.
- On-chain Governance: On the Kylin Network, KYL holders can vote for the parameter changes and protocol upgrades.
A total of 1 billion KYL tokens are there, with the distribution plan as the following:
|6.25% unlocked on TGE*, then monthly vesting over 12 months
|20% unlocked on TGE, then monthly vesting over 9 months
|100% unlocked on TGE
|0% unlocked for 12 months, then monthly vesting over 24 months
|0% unlocked for 4 months, then monthly vesting over 18 months
|Parachain Bond Funding
|10% unlocked on TGE, tokens under Foundation control to be used to pay for the DOTs required for the Kylin parachain slot in years 1-6
|Ecosystem & Community
|5% unlocked on TGE, then monthly vesting over 36 months
|5% unlocked on TGE, then monthly vesting over 36 months
|10-year vesting period starting from the Mainnet launch
- PlasmaPay – PlasmaPay is a digital payment platform allowing seamless entry into decentralized finance globally. Its mission is to democratize the DeFi market by creating a complete solution for both beginners and experienced blockchain users.
- PAID Network – PAID network is a blockchain-powered mega system. With the Internet of Value (IoV), PAID brings revolutionary, fundamental changes in contract fulfillment and lawsuit to the world of international business. PAID brings the solution, by providing the reasonable, easiest-to-use, and most automated DApp ever created, enabling everyone to conduct cross-border business.
- Xangle – Xangle has been addressing information asymmetry in the crypto-asset industry with its disclosure issuance platform. The platform collects the broadest scope of project-related on-chain and off-chain information, verifies it, and displays it all in one place as announcements, or disclosures.
- Polkamarkets – Polkamarkets is a DeFi powered prediction market built for cross-chain information trading and exchange. It is based on Polkadot where users take spots on outcomes of real-world events in a decentralized and interoperable platform.
The application scenarios include but not limited to:
- Decentralized Insurance Automatic Payment: Through the Kylin Network to obtain timely and reliable events outside the insured chain, blockchain-based decentralized insurance can realize automatic payment of insurance such as flight delay insurance.
- Stable Coins and Crypto Derivatives: Stable coins and encrypted crypto derivatives need to frequently obtain off-chain real-time price data. Kylin Network can obtain reliable data in multiple scenarios efficiently and in real-time.
- Crypto Asset Lending Platform: Kylin Network can provide reliable and real-time currency prices and social media information of the borrower, providing strong support for the dynamic determination of loan interest rates.
- Cross-chain Decentralized Exchange (DEX): The lightweight Kylin Network interface that can be deployed on multiple chains provides the possibility for DEXes to realize cross-chain atomic transactions.
- Decentralized Casinos and Games: On-chain decentralized casinos and games require safe and reliable random injection often. Kylin Network random number engine provides verifiable and unpredictable random number generation.
- Blockchain Computing Market: Commercial computing such as machine learning (ML) training models and 3D rendering needs to complete a variety of complex computing tasks. The off-chain computing market provides unlimited and verifiable off-chain computing capabilities.
The architecture of Kylin Network includes four major components:
- Kylin Data Analytics – It is a combination of analytic tools designed for data warehouses. It extracts relevant interpretation, data findings, patterns, and implements low-cost commercialization functionalities for the public.
- Kylin Data Oracle – It is a modern decentralized data feeding protocol powered by Polkadot offering multiple, real-time data sources at a much lower cost.
- Kylin Data Marketplace – It is an open platform for data exchange and pricing. DApps built on Polkadot can collect both off-chain and on-chain data easily and efficiently, paying only a very competitive fee.
- Kylin Token – KYL will play the role of governance and other utilities. KYL is necessary to power and secure the decentralized data network.
Kylin is based on substrate framework:
- Security for everyone – Polkadot’s data availability and validity scheme allows chains to interact with each other meaningfully. Chains are independent in their governance but united in their security.
- True interoperability – Polkadot allows cross-chain transfers of data or assets and not just tokens. It gives the ability to interoperate with a broad variety of blockchains in the Polkadot network.
- User-driven network governance – All stakeholders in Polkadot’s governance system have a voice. Upgrades to the network have on-chain coordination and enacted autonomously. It ensures that Polkadot’s development reflects the values of the community.
- Economic and transactional scalability – Polkadot provides economic scalability by enabling a common set of validators to secure multiple blockchains. By spreading transactions across multiple parallel blockchains, it also provides transactional scalability.
They will be launching the mainnet test version in Q1, 2021, and the mainnet version 1 in Q3, 2021.
See their roadmap for more details:
Kylin Network has introduced a distinct staking ranking method within the mining design. And the users in the best ranking area will get the most benefits. This provides a good mechanism for attracting more users to participate in mining. People are more dispersed, ensuring the decentralization of the oracle system, and the positive development of the community.
Looking at their partnerships and architecture, the Kylin network seems promising. Above all, it is built on Polkadot’s substrate framework.