Discovering Kintsugi Network (KINT)

Kintsugi is the experimental network developed by Interlay on the Kusama platform, and it holds real economic value. This network, based on the same code base as Interlay, prioritizes innovation and remains at the forefront in terms of its features.

Interlay is a decentralized network that aims to bridge cryptocurrencies like Bitcoin with decentralized finance (DeFi) platforms such as Polkadot and Ethereum. The Interlay network operates as a Polkadot parachain and will be connected to other major DeFi networks like Cosmos and Ethereum. To learn more about Interlay's vision for blockchain interoperability, click here.

Kintsugi's flagship product is kBTC, a 1:1 Bitcoin-backed asset on the Kusama network. It functions as an algorithmic stablecoin that is pegged to Bitcoin and can be redeemed at a 1:1 ratio. Users only need to trust in the security of Bitcoin and the DeFi platform they are using.

The native utility token of Kintsugi, KINT, is used for the following purposes:

• Participating in governance votes to decide on protocol upgrades and allocate network resources.
• Paying fees for transaction processing.

Understanding the Circulation of KINT Coins

The Kintsugi network was launched on October 13th, 2021. KINT has an unlimited supply, with 10 million tokens emitted over the first 4 years. Starting from year 5, there will be a 2% annual inflation.

70% of the token supply is distributed to the community through airdrops and block rewards: 30% to Vault rewards, 5% to governance staking rewards (known as "stake-to-vote"), and 35% to the on-chain treasury controlled by network governance. Additionally, 10% is allocated to a reserve for network development, community, and ecosystem building by the non-profit organization Kintsugi Labs. Finally, 20% of the supply is airdropped to the current and future team as well as early backers who provided initial funding for development.

Meet the Founders of Kintsugi Network

The founders of the Kintsugi Network are Alexei Zamyatin and Dominik Harz. They first met in 2017 during their PhDs at Imperial College London, where they were pioneers in the field of cryptocurrency research. Their research journey began in 2015/16, focusing on Bitcoin and Ethereum, and they have authored over 30 papers with more than 700 citations. They have presented their work at various conferences, including DevCon IV, EthCC, Building on Bitcoin, and Breaking Bitcoin.

The initial steps towards the creation of Interlay and Kintsugi were taken when the XCLAIM paper was presented at Scaling Bitcoin in 2018. This paper introduced the first-ever protocol for moving cryptocurrencies such as Bitcoin to Ethereum in a trustless and decentralized manner. In 2020, the founders established Interlay to bring their research into practice. Today, Interlay employs 18 staff members, including developers with experience at prominent companies like Google, Morgan Stanley, Trivago, Accenture, PwC, Worldpay, and Hyperledger.

The Unique Features of Kintsugi

The flagship product of Kintsugi is kBTC, a 1:1 Bitcoin-backed asset on the Kusama network. This asset is backed by multi-collateral insurance and operates as an algorithmic stablecoin that is pegged to Bitcoin and can be redeemed at a 1:1 ratio.

What sets Kintsugi's kBTC apart is its commitment to being trustless and decentralized.

Secured by Insurance. Vaults lock collateral on the kBTC parachain in various digital assets in a multi-collateral system inspired by MakerDAO. If Vaults behave improperly, their collateral is slashed and users are reimbursed. Radically Open. Anyone can become a Vault and assist in securing kBTC at any given time.

As a holder of kBTC, you are guaranteed the ability to redeem it for BTC or receive reimbursement in the collateral currency at a favorable rate.

In the event that a Vault misbehaves, you will be reimbursed using the Vault's collateral, resulting in a profitable trade between BTC and the collateral asset(s).

Initially, collateral will be provided in DOT. However, in the medium to long term, it may be extended to stablecoins or token sets to enhance stability.

To trust interBTC, you only need to:

Trust in the security of Bitcoin, meaning you trust that Bitcoin blocks are finalized after a certain number of confirmations. The bridge will recommend a minimum of 6 confirmations, although higher thresholds are encouraged by users and apps.

Trust in the security of Kusama or the chain on which you are using kBTC. This assumption is made by all applications running on top of the Polkadot platform.

Related Pages:

Learn more about Interlay, Kintsugi, and interBTC here.

Find out more about wBTC, a centralized Bitcoin-backed asset.

If you are new to cryptocurrency, you can find all the information you need on Alexandria, CoinMarketCap's dedicated education resource.