KuCoin is a cryptoasset exchange that describes itself as a hybrid exchange integrating features of both centralized and decentralized exchanges. The long-term goal of the team is to transition to a fully decentralized exchange model.
Currently, the exchange operates through more of a centralized model, attempting to duplicate best practices in traditional asset exchanges including dedicated risk and compliance teams. These teams are responsible for internal controls and cross-departmental reviews aimed at reducing fraudulent activity on the platform.
KuCoin Shares (KCS) is a token used to reward users and attract new customers to the exchange. Users holding a specified amount of KCS in their account are eligible for discounts on trading fees. Furthermore, holders of KCS receive a daily dividend, called a KuCoin bonus, equal to 50% of trading fees on the exchange. Those that have referred new users to the platform are eligible to receive 40% of fees while the exchange retains the remaining 10%. Dividends are paid in whichever token was the most traded during the day.
To encourage referrals, each user receives a registration link they can share. Referral bonuses are paid for both direct and indirect activity. Users receive bonuses for both the activity of their direct referrals as well as the activity from any new users their referrals add to the platform. Users holding enough KCS in their exchange account receive a discount on trading fees. KCS held off-exchange is not eligible for this rebate program. Additional benefits such as a personal investment consultation and expedited customer service are offered to users on a tiered basis as they increase their KCS holdings.
While trading rebates and referrals are the current use case for KCS KuCoin plans to use the token for transaction fees once they launch a fully decentralized platform. Current trading fees on the exchange are 0.1% at the time of this report.