LINE launches its 1st Cryptocurrency ‘LINK’
LINE Corporation announced today that it has launched its first digital token, LINK, and its first blockchain network, LINK Chain, both of which were built independently by LINE. With the launch, LINE becomes one of the largest and most-established companies to develop and issue a cryptocurrency.
Unlike other cryptocurrencies or digital tokens, LINK will not make an Initial Coin Offering (ICO), but instead utilises a reward system that gives users LINK as compensation for using certain services within the LINE ecosystem. For example, a user who has joined and participated in one of the decentralised app (dApp) services related to LINK can receive LINK as incentive. That LINK can then be used as payments or rewards within the dApp services that will launch soon, and for service categories like contents, commerce, social, gaming, exchange and more within the LINE ecosystem.
LINE plans to register LINK exclusively on its global digital asset exchange BITBOX in September, where the new cryptocurrency will be distributed to users. Along with the dApps that will be launched soon, BITBOX will be the platform where users are able to acquire LINK and trade LINK with other digital assets. Furthermore, BITBOX will provide exclusive benefits to LINK holders, such payments or discounts on trading fees and many promotional events.
LINK operates using LINK Chain, a blockchain network (mainnet) that was also built by LINE following the launch of the Genesis Block on August 23. LINK Chain is a service-oriented blockchain network that enables dApps to be directly applied to the LINE messaging platform. In addition, LINE’s extensive know-how in building platform infrastructure and large scale-out networks means both stability and minimised wait times (which, until now, has been a weakness of the decentralised blockchains), even for a system with a very large number of users.
To expand and develop the blockchain ecosystem, LINE will encourage and support diverse dApp services – including those not operated by LINE – to participate in LINE’s blockchain network. Through building a token economy based on a win-win relationship between consumption and rewards, LINE aims to establish itself as a leading digital reward platform.
CEO of LINE, Takeshi Idezwa said:
“Over the last seven years, LINE was able to grow into a global service because of our users, and now with LINK, we wanted to build a user-friendly reward system that gives back to our users. With LINK, we would like to continue developing as a user participation-based platform, one that rewards and shares added value through the introduction of easy-to-use dApps for people’s daily lives.”
A total of 1 billion LINK will be gradually issued, according to how this ecosystem develops. Of that amount, 800 million will be allocated for user rewards, while 200 million will be managed by LINE Tech Plus, the issuer of LINK, as a reserve.
For residents in Japan, LINK Point will be received as rewards for activities in dApp services instead of LINK. Japanese users can use LINK Point within dApp services or change it for LINE Points. However until LINE gets authorisation for cryptocurrency trading and exchanges by the regulatory authorities in Japan, LINK Point cannot be deposited, withdrawn, transferred, traded or exchanged at cryptocurrency exchanges, including BITBOX.
Definition: Cryptocurrency (or digital token) for use within the LINE ecosystem
Official website: link.network
Name: LINK (or “LINK Point” in Japan)
Issuer: LINE Tech Plus (based in Singapore)
Total amount issued: 1 billion (user rewards 800 million; LINE Tech Plus reserves 200 million), to be gradually issued based on how the ecosystem develops
Issuing method: Issued free of charge as a reward for service contributors
Units: The basic unit is the LINK, and the smallest unit is the cony (1,000,000 cony = 1 LINK)
Types of LINK usage by service category:
Content: Payment for music, videos, and webtoons
Commerce: Payment for products/services, discount benefits, and payback
Social: In-app payment systems and wire transfers between individuals
Gaming: In-game trading and character improvements
Exchange: Payment of commissions, fee discounts and cryptocurrency trading at BITBOX