What is it?
Based out of Hong Kong, the most interesting aspect of Kucoin is their profit-sharing scheme through their ERC20 token called Kucoin Share (KCS). By owning, and holding KCS on the Kucoin exchange, you can receive 50% of the profit the KuCoin exchange makes.
Only paid to holders on the exchange
The dividend is only paid to holders having their KCS on the Kucoin exchange. If you hold the tokens in your own wallet, you do not have the right to any of the dividends.
Comparable to the Binance exchange, KuCoin offers relatively low trading fees and incentives users for holding (or trading) its native cryptocurrency. The KuCoin exchange was launched late 2017.
Kucoin Shares (KCS) are ERC20 tokens operating on the Ethereum blockchain. Just as with the Binance exchange, the KuCoin exchange offers low trading fees, a trading discount for KCS holders. The fee for each trade on the KuCoin exchange is 0.1% of the asset you bought plus any discount you may get from holding KCS. For every 1000 KCS you own, you get a 1% discount (hard capped at 30%). The more Kucoin Shares (KCS) you hold, the more dividends you will receive.
The company currently shares 50% of their trading fee revenue with the users holding KCS. The percentage paid to the KCS holders is supposed to reduce over time, going below 50%. The revenue is transferred to users balances at 0:00 (UTC+8) every day, after the accounting team evaluates the trading fees from each trading pair on the exchange.
More than 300 cryptocurrencies and tokens are traded on the Kucoin exchange, payments to KCS holders are made in all these coins, depending on the traded amounts. This proposition enables users to receive passive income by just holding the tokens.
