The Kyber team has passed a proposal to upgrade the Kyber Network, making KNC better-suited for future upgrades. This new KNC token contract gives greater control to the KyberDAO. This means quicker upgrades, and makes Kyber more adaptable to the fast-changing DeFi landscape.
The current Kyber Network Crystal contract is non-upgradable, which is one of the problems the upgrade will fix. However, this means that the upgrade will cause a new contract deployment causing the contract address to change and effectively creating a new token.
The current KNC token will become a legacy token called KNCL. The new token will effectively be KNC, and both users and exchanges will have to eventually migrate the old tokens into new tokens.
Please rest assured that your KNC balance will not be affected. The migration will be carried out in a 1:1 ratio, and for every 1 old KNC that is migrated, you will receive 1 new KNCv2 token.
ZebPay will support the contract migration, and will migrate your legacy KNC tokens to new KNC on your behalf.
Here’s ZebPay’s plan to migrate Kyber
KNC deposits and withdrawals will be suspended on June 1, 2021 at 3 PM IST as we complete the upgrade. Please complete your KNC deposits well before this time to ensure they are fully processed.
We will make an announcement once the migration is complete. You will then be free to deposit and withdraw the new KNCv2 tokens, which will be listed as KNC.
Trading activities for all tokens on ZebPay will remain open and unaffected throughout.
- The migrated KNC token will be available under the same ticker symbol (KNC).
- If you do not wish to migrate the tokens, please withdraw your KNC tokens outside of your Zebpay wallet before the suspension time.
- This is a one-time migration. After the migration is complete, ZebPay will not support deposits or migration for old KNC tokens.
- Be sure to check with your sending and receiving exchange regarding the support for new migrated KNC token before sending to and from Zebpay.
- Your KNC balance won’t be affected by this migration, since no new tokens will be generated.
Why upgrade the Kyber Network?
The DeFi space is constantly evolving, and the KNC team identified several areas of improvement. The current KNC token contract has several factors that make it unsuitable to meet Kyber’s next phase of growth:
- The token is non-upgradable meaning any major improvements and functionality changes require an inconvenient full smart contract migration
- The KyberDAO has no steering mechanism for the token’s behaviour
- There is a fixed supply of tokens. Therefore, the KyberDAO cannot support new initiatives or user growth through funding when when the opportunity arises
The KIP-6 upgrade has two major improvements to make on the existing structure.
First is token upgradability.
The new token contract will permit a wide range of upgrading capabilities. This means that the Kyber DAO will be able to add further upgrades and new functions to your tokens, without interfering with the supply.
A dynamic token supply is the second improvement.
A DAO will now dynamically control the supply of KNC. KyberDAO will be able to generate new KNC tokens if necessary to fund new protocol development. These initiatives will help bring more users into the Kyber ecosystem.
You can find the new Kyber token contract here – 0xdeFA4e8a7bcBA345F687a2f1456F5Edd9CE97202
For more information on the migration, see the KNC migration guide.