Kraken’s Ethereum Layer-2 Network Ink Gets Its Own Token
The Ink Foundation, an organization separate from Kraken, is introducing a new token for the crypto exchange’s Ethereum layer-2 network, Ink. The INK token won’t be used for governance—instead, it’s meant to support decentralized finance (DeFi) activity on the blockchain.
Ink Network, which launched last October, is built using Optimism’s OP Stack, putting it in the same ecosystem as other Ethereum layer-2 chains under the Optimism Superchain umbrella. That means it shares some infrastructure and security features with those networks.
What the INK Token Will Do
The Foundation’s board suggests the token could help drive DeFi growth on Ink, particularly around liquidity and core functions. But unlike many other layer-2 tokens, INK won’t be used for voting or governance decisions. Instead, the network will stick with Optimism’s existing revenue-sharing and governance model.
There’ll only ever be 1 billion INK tokens, and the first major use case will tie into a liquidity protocol developed with Aave, a well-known DeFi platform. Early users of that protocol might even get some INK for free through an airdrop—though the specifics of how that’ll work aren’t fully clear yet.
The Foundation hasn’t said much about when the token will officially launch or who exactly is running things behind the scenes. That’s left some questions unanswered, especially since Kraken was the one that originally rolled out the Ink Network.
Big Claims, Few Details
In a tweet, the Ink Foundation called the network “the foundation for a full-stack DeFi ecosystem,” suggesting it’s more than just another layer-2. But right now, it’s hard to say how much of that is hype and how much is real.
The idea, at least, is for INK to help power lending, trading, and other DeFi activities on the network—ideally in a way that benefits users directly. Whether that actually happens will depend on how the ecosystem develops.
For now, though, the Foundation seems focused on getting the token out there and seeing where things go. It’s still early, and with so many layer-2 projects competing for attention, Ink will need more than just a new token to stand out.
