MEXC Exchange Research: KEaNU(T) Market Research and Analysis

 I. What is KEaNU？

KEaNU, the new privacy-based blockchain project, combines two privacy-based blockchain products, Keep Network and NuCypher. On June 14, the two communities already voted in favor of the merger proposal.

Before grasping what KEaNU is, one would need to have a brief understanding of the Keep Network and NuCypher projects. Keep Network is a privacy-based public chain protocol that allows contracts to use private data without exposing it to public blockchains.

The merger of Keep Network and NuCypher was because of tBTC. tBTC is Keep Network’s decentralized, permissionless token pegged to the price of Bitcoin, which uses a decentralized set of signers instead of a centralized hosting mode.

Most of the crypto pegged to BTC are issued via centralized hosting, but there are many problems with this centralized xBTC, such as being permission, under review, restricted, and only for a small number of large-supply holders, which is opposite of what decentralization is.

The V1 version of tBTC consists of a 3-of-3 set of signers, and requires the signer to stake ETH (150% of the BTC value) in excess to generate tBTC, imposing a high token cost on the user. tBTC’s circulating supply is about 871 BTC, which is unsatisfactory.

NuCypher originally issued decentralized, censor-resistant crypto pegged to Bitcoin that was similar “tBTC”. Based on the common needs of Keep Network and wanting to resolve the current tBTC problems, both sides agreed on a merger plan after a proposal and community votes.

According to NuCypher, “Teams have been exploring the feasibility of building a decentralized asset bridge, similar to tBTC, on top of NuCypher. Given our common interests and technological capabilities, the benefits of collaboration between NuCypher and Keep are compelling, especially when people consider the unique capabilities of NuCypher networks, which can provide thousands of staking nodes as signers for tBTC V2 launch — which is what the new V2 design requires.”

NuCypher said: “If V2 successfully challenges the dominance of wBTC and provides DeFi with truly permissionless digital gold, NU and KEEP stakeholders will be DeFi’s key to enjoy meaningful, new expenses and revenue streams.”

The new V2 version replaces the 3-of-3 signer set with the signer set of at least 100 independent nodes, eliminating the requirement for signers to stake ETH leading to the support of using NU or KEEP as collateral, and then lowering the cost of user minting by integrating L2.

At the same time, V2’s security relies mainly on the assumption that most signers are honest (for example, 51 signers in a 100-signer set are honest), and when enough signers collude (though unlikely), the pool provides additional guarantees and support. The support consisting of crypto assets (such as NU and KEEP) deposited by the token holder. To ensure that profits are made while preventing fraud.

Overall, the two sides initially collaborated to build an extensible tBTC V2 to challenge the dominance of wBTC among cryptos pegged to Bitcoin, while token stakers could enjoy meaningful, new expenses and revenue streams.

After the merger, KEaNU will mainly start the merger and development of the two main networks, the merger of the token KEEP and NU to create the tokenomics design of T, the governance structure of DAO, and the development of TBTC v2.

This is exciting. The two projects after the merger may face many issues, such as the development of network compatibility, DAO governance, token allocation, benefit allocation, and whether any team or community will dominate KEaNU. If the merger is successful, this may provide an example of decentralized governance.

II. Tokenomics of T

The KEaNU token is called a “T”, and its initial issuance is 10 billion. Future inflation will be voted on by the DAO. Where:

45% (4.5 billion) allocated to existing KEEP holders

45% (4.5 billion) allocated to existing NU holders

The remaining 10% (1 billion) are allocated to KEANU DAO.

In June, the NuCypher and Keep communities voted on the merger proposals to determine DAO governance and the inflation rate of the KEANU upgrade network.

In July, the merger of NuCypher and Keep will be completed.

In August, KEaNU’s upgrade network will be launched.

In September, tBTC V2 will be released.

III. Practical Value Analysis

The merger of NuCypher and Keep, whose core teams will not be merged as part of the proposal, will allow tokens KEEP and NU to continue to exist in their networks and as tokens for collateral in KEaNU networks.

The practical value of the token T of KEaNU, now integrated, has yet to be disclosed in more detail. But we may be able to make the following guesses for reference:

1. Users can use T as collateral to mint tBTC

2. KEaNU’s DAO Governance Assets

3. Node Operations Rewards

This article is for sharing market information only. It does not represent the view of MEXC Research, nor is it a recommendation for investment.