You can participate by pledging 1 KCS to invest. How can KuCoin use the "KCS Loyalty Level Plan" to leverage new momentum on the platform?

Author: Weilin, PANews

In the crypto world, the role of platform coins is continuing to evolve. From the original "fee deduction tool" to today's core ecosystem assets. The value of platform coins not only reflects the strength and vision of crypto exchanges, but also becomes a bridge for user participation, ecological construction and profit sharing.

As a native token of KuCoin Exchange, KCS has always played a key role in ecological evolution since its launch in 2017. Users can use KCS to pay for handling fees, earn incentive funds, and receive exclusive rewards. It was originally based on the Ethereum issuance (ERC-20 standard), and was subsequently moved to the KuCoin community chain KCC to support more scalability needs.

With the global number of KuCoin users exceeding 38 million, the platform is accelerating the construction of a new generation of crypto-financial ecosystem. The KCS loyalty level plan launched in March 2025 is an important part of KuCoin's launch of user incentive system 2.0 - making KCS no longer just a platform coin, but a pass to the future financial world.

KCS Loyalty Level Plan: Four major levels, comprehensively improving user

participation and asset activity

The KCS loyalty level plan has four levels: K1 Explorer, K2 Voyager, K3 Navigator and K4 Pioneer. The level is divided based on the number of KCS pledges of users and their proportion of total assets. The design idea takes into account both "low threshold" and "high incentives": users only need to invest at least 1 KCS to participate, and unlock the exclusive rights and interests that are incremental step by step.

The KCS Loyalty Level Program’s main incentive benefits include:

• Staking earnings bonus : The higher the holding level, the higher the annualized return rate, effectively improving the compound interest potential of assets.
• Additional returns for financial products : When participating in fixed income products such as USDT, BTC, ETH, etc., you will enjoy a level exclusive income bonus.
• GemPool new issuance multiple increase : GemPool allows users to pledge crypto assets to obtain token airdrops. Get SGD without additional fees by pledging KCS, USDT and other tokens. During the event, users can pledge other tokens listed on the KCS, USDT, or GemPool page. If the conditions are met, the airdrop token reward will be deposited into the user's trading account after the pledge period ends. The user can also receive the accumulated airdrop token reward according to the prompts on the activity page. Now, users who participate in the loyalty level program and participate in the GemPool KCS pool can receive GemPool multiple bonuses to increase potential returns.
• All-round platform rights and interests : including KuCard payment and cashback, transaction KCS deduction transaction fee, currency withdrawal fee refund, KA new user interest-free amount, etc. Meanwhile, KuCoin is planning to add support for KCS staking to its Spotlight platform, allowing users to participate in project subscriptions directly through staking.

As the KCS loyalty level program is launched, KuCoin officially released a website-wide welfare frenzy, preparing triple gifts for KCS supporters: KCS holders enjoy airdrops - give back to loyal users, and rewards will be airborne the account soon. New User Subscription Challenge - Racing Subscription, Sprint List, Win Exclusive KCS Rewards. " Pioneer" enjoys bonuses for bonuses - becoming a pioneer member and opening up advanced returns.

It can be said that through these activities, KuCoin has made active explorations to enhance KCS and bring more practical benefits to users.

KCS destruction mechanism: Continuously optimize circulation and promote

value growth

Token burning is a common token economic model, similar to stock market repurchase, which means that its total supply will gradually decrease through the token destruction process over time, and the decrease in circulation also promotes the scarcity of tokens. KCS also implements a deflation model, with KuCoin using a portion of its net profit to repurchase KCS, then destroying the tokens, and permanently moving it out of circulation. The goal is to reduce the total supply from the initial 200 million tokens to 100 million tokens. This scarcity may help drive the token value over time.

In March 2025, the KCS team completed the 57th KCS destruction, burning 17,836 KCS worth approximately US$218,074. Over the past year, more than 1.0888 million KCS have been destroyed, worth about 10.867 million US dollars, demonstrating the platform's determination to continuously optimize the token structure.

From chain, payment to the Web3 ecosystem, KCS is moving towards the dual identity of "platform currency + equity certificate". At the same time, KuCoin adheres to the compliance route and provides more users around the world with a safe and innovative transaction experience KCS. KuCoin has broad development prospects, and KCS takes the vision of "from geeks to mass adoption" as its core and promotes innovative economic models through three strategic pillars:

First, strengthen the KCC ecosystem.

KCC 1.0 was officially launched on June 16, 2021. This is an EVM-compatible blockchain that supports DeFi, gaming and Web3.0 applications, with millions of blocks and a growing number of users.

KCC 2.0 upgrades internal subroutines to improve performance, scalability and Gas limits (up to 500 million per block), while maintaining EVM compatibility.

KCC 3.0 has evolved into a cross-chain ecosystem, adding low-cost Layer 2 and multi-function SDKs to provide efficient cross-chain transfer functions and expand the scope of DeFi and gaming applications.

The second strategic pillar is to establish a comprehensive payment system. KCS is participating in the construction of a payment system that runs through the KuCoin ecosystem, including transactions, lending, NFT and offline payment access, lowering the global digital asset payment threshold, and forming a connection with the external chain ecosystem.

The third strategy is to lead the evolution of the Web3.0 ecosystem. KCS advocates decentralized, user-driven Internet, and implements it in the following ways:

• Decentralized Identity: A secure, private decentralized Identity (DID).
• NFT Management: Simplified ownership and transaction agreements.
• Metaverse Platform: Supports social, gaming and virtual work environments.
• Developer Support: Provide funding and build a vibrant community equipped with an exclusive Web3.0 incubation fund.

Driven by the continuous expansion of the platform ecosystem and the steady growth of the user base, KCS' long-term potential is being released at an accelerated pace. Through the loyalty level plan, KuCoin comprehensively improves the participation and long-term holding motivation of KCS holders, further stimulating the platform's ecological vitality. In line with the quarterly repurchase and destruction mechanism, KCS's circulation volume has been continuously optimized, and the supply and demand relationship has tended to be balanced, laying a solid foundation for long-term value growth.

Looking to the future, KuCoin will continue to adhere to the strategic direction of globalization and compliance, deepen its efforts in local markets, embrace supervision, and provide global users with a safer, transparent and innovative transaction experience. As product lines such as KuCard, Earn, Launchpad continue to expand, KCS's usage scenarios will continue to expand, becoming a key link between linking the exchange ecosystem and user rights.

With the looser regulatory environment and policy support, the future of the crypto market ushers in more development opportunities. The launch of the KCS loyalty level program is a measure for KuCoin to optimize user incentive mechanisms, and it also reflects its direction of promoting global compliance processes and enhancing the platform's value release capabilities. Against this background, KCS may have greater development potential and opportunities through continuous efforts in the future.