Note about unlocked NKN tokens

Community News
#1

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Based on existing NKN economic model, the team/developer and foundation tokens are unlocked according to the following schedule:

Foundation: 170,000,000 in total

  • 1st unlock: 56,666,667, May 28th, 2019
  • 2nd unlock: 56,666,667, May 28th, 2020
  • 3rd unlock: 56,666,667, May 28th, 2021

Team/Developer: 180,000,000 in total

  • 1st unlock: 60,000,000, May 28th, 2019
  • 2nd unlock: 60,000,000, May 28th, 2020
  • 3rd unlock: 60,000,000, May 28th, 2021

Therefore, we have moved the first unlocked portion of the team/developer and foundation tokens to their respective distribution wallets. We will start to distribute some of the funds to community developers (e.g. the recent special community award to nknx.org), as well as our technical advisor. In addition, we will distribute merit based reward to our core developers.

The holding wallets for locked tokens continue to be:

The distribution wallets for unlocked tokens are:

There is no change to the economic model or token metrics . These tokens have already been unlocked in May 2019, and the actual circulating supply already increased to 466,666,667 in May 2019. The only reason why only now it is reflected on coinmarketcap.com (CMC) is because CMC uses a unique algorithm that only add unlocked tokens to circulating supply AFTER they are moved out of the original wallet.

NKN team believe in the long-term future of NKN project and have sufficient liquid funds for our day to day operations. Our primary use of the unlocked tokens is to incentivize key contributors to the NKN project, as well as grow the developer ecosystem of NKN tokens.

NKN Bi-weekly Report May 16 - May 30, 2020
#2

Recently people saw this transaction of ERC-20 NKN tokens moved from Foundation distribution wallet to another address:

https://etherscan.io/tx/0xb73a4751701663b0e92874d42b7eebe3eae57691b02c11817b440cd9c34f5546

It is actually very simple to explain: these are for the mainnet token swap pool (0x31d875dd87e7078cf70fc8e9174dc895013b2050).

  • In ERC-20 we only issued 700,000,000 NKN, and did not include the mining part
  • Since our mainnet launch on July’1, 2019, there are about 6-7 million mainnet NKN mined, which does not have their counterpart in ERC-20
  • So we have to borrow some ERC-20 tokens from the Foundation (which is inside of the 700M ERC-20 we issued) until all are converged to mainnet eventually in 2020

That amount is not used to pay for staff, developer, partner, or advisor.

#3

As scheduled, the following tokens will be unlocked on May 28th, 2020:

  • Foundation: 56,666,667
  • Team/Developer: 60,000,000

The NKN Foundation and Team have no immediate plans to move these unlocked tokens, either for internal use or for external use. We do not plan to sell any of team or foundation tokens on exchanges in the foreseeable future, since we have enough funds for ongoing operations.

Facts speaks better than fiction or rumor: out of our previously unlocked ERC-20 tokens (May 2019), we only used them for exchange listing (Huobi, Binance), swap (swap from mainnet to ERC-20), community reward, and some staff incentives. And the vast majority remains in the distribution wallets.

We welcome everyone to continue to monitor our foundation and team wallets specified above.

NKN Bi-weekly Report May 16 - May 30, 2020