What Is Kyber Network Crystal v2 (KNC) and How Does It Work?
Kyber Network Crystal v2 (KNC) is the native utility and governance token of the Kyber Network, a decentralized liquidity protocol that powers on-chain token swaps across multiple blockchains. Kyber is best known for KyberSwap, its flagship
decentralized exchange (DEX) aggregator, which sources liquidity from various pools and protocols to help traders get the best possible swap rates with minimal slippage.
KNC plays a central role in aligning incentives across the Kyber ecosystem. Token holders can stake KNC to participate in KyberDAO, where they vote on key network parameters such as fee models, reward distribution, and protocol upgrades. In return for staking and voting, participants can earn KyberDAO rewards, which are funded by a portion of trading fees generated across Kyber-powered liquidity pools.
From a technical standpoint, Kyber Network operates as a liquidity hub rather than a single exchange. Liquidity providers deploy capital into Kyber’s specialized pools, such as concentrated liquidity and dynamic market maker pools, while traders interact through KyberSwap or integrated DeFi apps. KNC functions as the governance and incentive layer that helps coordinate liquidity growth, protocol sustainability, and long-term ecosystem development across
Ethereum and other supported networks.
When Did Kyber Network Crystal v2 and KyberSwap Launch?
Kyber Network Crystal v2 (KNC) traces its roots to the Kyber Network, a pioneering decentralized liquidity protocol founded in 2017 by blockchain entrepreneurs Loi Luu, Victor Tran, and Yaron Velner with the goal of enabling seamless on-chain token swaps without intermediaries. The platform’s mainnet first launched on Ethereum in February 2018, followed by the public beta release of its DEX interface, KyberSwap, in March 2018, which aggregated liquidity for real-time trading across ERC-20 tokens. KNC itself was introduced as an ERC-20 utility and governance token in April 2021, becoming central to the ecosystem’s governance and incentive structure.
KyberSwap Key Milestones and Roadmap Highlights
- 2017: Kyber Network founded with a focus on decentralized liquidity solutions.
- Feb 2018: Kyber Network mainnet goes live on Ethereum.
- Mar 2018: KyberSwap public beta launched as Kyber’s DEX frontend.
- Apr 2021: Kyber Network Crystal v2 (KNC) token officially launched.
- 2023–2025: Expansion to multiple chains like Arbitrum, Avalanche, zkSync, liquidity mining programs, and product enhancements under the 2025 roadmap.
What Is the KNC Token Used for?
Kyber Network Crystal v2 (KNC) is primarily used as the governance and incentive token of the Kyber Network ecosystem. By staking KNC, holders can participate in KyberDAO, where they vote on key protocol decisions such as trading fee models, liquidity incentives, and ecosystem upgrades. In return, active voters earn rewards funded by a portion of fees generated across Kyber-powered liquidity pools. KNC is also used to align incentives between traders, liquidity providers, and protocol developers, supporting Kyber’s long-term sustainability as a decentralized liquidity hub.
You can trade KNC tokens on the
BingX spot market by buying or selling
KNC/USDT using real-time market prices. BingX offers a user-friendly spot trading interface with deep liquidity, advanced charting tools, and secure custody, making it easy to manage your KNC positions efficiently.
What Is KyberSwap Tokenomics?
Kyber Network Crystal v2 (KNC) tokenomics reflect Kyber’s evolution from an early DeFi liquidity protocol into a DAO-governed, multichain ecosystem. KNC was originally minted during Kyber’s ICO on 16 September 2017, when 226 million KNC were created and distributed among community participants (61.06%), company reserves (19.47%), and founders, advisors, and early investors (19.47%, subject to vesting). After unclaimed tokens and protocol burns, the post-ICO max supply was reduced to 215.63 million KNC, with all founder and advisor tokens fully unlocked by September 2019.
In April 2021, Kyber completed a major KNC token migration approved through KyberDAO governance (KIP-6). The legacy token (KNCL) was replaced 1:1 with the new KNC, enabling more flexible upgrades and stronger DAO control. At the time of migration, historical burns reduced the new KNC max supply to 210.25 million. To support long-term ecosystem expansion, KyberDAO later approved the minting of 42.05 million KNC via the KyberDAO Ecosystem Growth Fund (KIP-8 and KIP-9), bringing the current maximum supply to 252.30 million KNC.
As of the latest reported data, total supply stands at around 240 million KNC, with 190 million KNC in circulation as of February 2026. A significant portion of tokens is actively used within the ecosystem, including KNC staked in the KyberDAO and tokens held by the DAO’s multisig for governance and growth initiatives. Overall, KNC tokenomics are designed to prioritize governance participation, protocol sustainability, and long-term ecosystem growth, rather than high inflation or short-term emissions.
How to Stake KNC Tokens on KyberDAO
Staking Kyber Network Crystal v2 (KNC) allows you to participate in governance and earn rewards through KyberDAO. The process is non-custodial and can be completed directly through Kyber’s official interfaces in a few clear steps.
Step 1: Prepare Your Wallet
First, store your KNC in a compatible
Web3 wallet such as
MetaMask and make sure it is connected to the correct network, like Ethereum or the supported chain where your KNC resides. You’ll also need a small amount of native gas tokens, e.g., ETH, to cover transaction fees.
Step 2: Access KyberDAO and Stake KNC
Visit the KyberDAO staking portal and connect your wallet. Choose the amount of KNC you want to stake, approve the token transaction, and confirm the staking action. Once staked, your KNC is locked in the KyberDAO contract but remains under your wallet’s control.
Step 3: Vote and Earn Rewards
After staking, you can vote on Kyber Improvement Proposals (KIPs) during each epoch. Voting is essential, as only active voters are eligible to earn KyberDAO rewards, which are funded by a share of trading fees generated across KyberSwap. At the end of an epoch, you can claim rewards or restake to continue participating.