KCSA BLOCKCHAIN-BASED VALUE
SELF-CIRCULATION ECOSYSTEMFROM GEEKS TO MASS ADOPTION –THE PEOPLE’S ECOSYSTEM

whitepaper@kcs.foundation

Disclaimer
Nothing in this White Paper is an offer to sell, or the solicitation of an offer to buy any tokens. KCS is publishing this White
Paper solely to receive feedback and comments from the public.
Nothing in this White Paper should be treated or read as a guarantee or promise of how KCS's business or the tokens willdevelop or of the utility or value of the tokens. This White Paper outlines current plans, which could change at its discretion,and the success of which will depend on many factors outside KCS’s control, including market-based factors, factors within
the data and cryptocurrency industries, among others. Any statement about future events is based solely on KCS's analysis of
the issues described in this White Paper. That analysis may prove to be incorrect.

01- Motivation

02- Record of Proven
Success – Why Choose Us

03

04

FutureFutureImprove the KCC Ecosystem

Improve the KCC Ecosystem

History

05
FutureBuild a Payment System
Build a Web3.0 Ecosystem

06- Team and Managementof KCS Ecosystem
Early Phase

07
Autonomous Phase- KuCoin Token (KCS)08
Initial KCS Token Distribution
Allocation to Early Participants
Allocation for Market/Community Rewards
Allocation to Advisors / Angel Investors
Allocation to Founders/TeamKCS Continuous Growth &Redistribution Plan

09

10

KCS Continuous Growth &Redistribution Plan

KCS Value Capture andDeﬂationary Mechanism
Aggregation within the Ecosystem
Deflationary Mechanism
Reward Mechanism
Fee Discounts

11- OutlookKCS

A BLOCKCHAIN-BASED VALUE
SELF-CIRCULATION ECOSYSTEM

01

Motivation
Since the birth of Bitcoin in 2009, the crypto world has experienced a revolution that saw blockchain 1.0 to blockchain 2.0, andblockchain N.0. Cryptocurrency has expanded beyond the characteristics of a currency to include the capabilities of an application
with the smart contract as its basis, with an endless supply of new application types. Decentralized finance, decentralized computing,decentralized storage, Web3.0 etc., each new bold attempt at innovation brings not only new technological improvement in this area,
but also changes to the world. Decentralized finance advances financial inclusion, decentralized computing and decentralized storage
allows every byte of information to be executed and recorded while Web3.0 redefines the relationship between productivity andproduction.
We believe that in the future, blockchain technology and its related applications will be applied on a large scale and profoundly change
our lives, akin to the Internet today.
The ecosystem and the applications derived from blockchain technology will continue to benefit mankind. However, while blockchain
technology continues to move towards mass application, there are still urgent problems that need to be solved. For example, more than
90% of the world's population has never been exposed to cryptocurrencies or the associated technology. The rapid development of thecrypto world (such as the emergence of new technologies, new concepts and new applications) will also increase the threshold for newusers to enter the crypto world (such as NFT transactions, Layer 2s and cross-chain transactions, etc.). Moreover, there remains a huge
"disconnection" between the crypto world and the traditional world.
Since its establishment in 2017, the KCS ecosystem has been an observer, a participant, and a beneficiary within the crypto industry.
For the next phase of the industry’s development, the KCS team would like to further capitalize on the key advantages, such as our
influence, platform, technology, talents etc., to build a self-circulating ecosystem based on KCS, thereby lowering the barriers forordinary users to enter the world of the blockchain, thus allowing blockchain technology and its related applications to truly move fromthe geeks to the masses while allowing more individuals and organizations to make better use of blockchain technology and advance it.

whitepaper@kcs.foundation

KCS

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Record of Proven Success– Why Choose Us
Based on the vision of “from the geeks to mass adoption”, we have created the KCS token to

KCS TOTAL SUPPLY

build a unique economic model that encourages participation from more users. KCS token,

200,000,000

besides being an ERC20 smart contract token on the Ethereum chain currently, is also thenative token on the KCC chain. It serves the entire KCS ecosystem as gas for the base layer. We
strongly believe that only an ecosystem embedded with an incentive model will continuously
operate, develop, evolve and grow.

TOTAL SUPPLY AFTER KCS
IS BURN

The total supply of KCS is 200 million. There will never be an overissue. Through the process of

100,000,000

continuous burning, the supply will eventually stabilize at 100 million.
Collaboration with the KuCoin Exchange, the KuCoin Community Chain (KCC), payment,
entertainment, finance and all other usage scenarios are important cornerstones of the KCS
ecosystem.

History
The current core achievement of the KCS ecosystem in its first phase of development is thecollaboration with the KuCoin Exchange. The KCS ecosystem creates a unique competitive
advantage for KuCoin. KCS holders also form the core user group responsible for the growth of
KuCoin. At the same time, the development and growth of KuCoin provides KCS ecosystemusers with unique KCS rewards, fee discounts and participation in initial token offerings andother unique services. The successful collaboration between the two ecosystems and theirintegration have allowed KuCoin to become one of the top five leading digital asset exchanges
in the world. It has also made KCS one of the top 100 leading crypto projects in the world bymarket capitalization.
As of January 2022, the KuCoin trading platform has accumulated up to tens of millions ofregistered users, with cumulative trading volume in the hundreds of billions in terms of USD
dollars.
Besides collaboration with the KuCoin Exchange, KCS has also seen initial success in the areaof decentralization with the development of KCC. The number of projects in the KCC ecosystem
are in the double digits, including decentralized exchanges, wallets, wealth management,
non-fungible tokens, decentralized autonomous organizations etc. The total value locked
among KCC ecosystem projects amount to tens of millions while the number of effective
addresses holding KCS tokens are in the tens of thousands. At the same time, the KCS community has seen rapid development. The number of languages supported are in the double digits
while the number of community followers are in the millions, reaching over a hundred countries
and regions.

whitepaper@kcs.foundation

KUCOIN CUMULATIVEREGISTERED USERSTENS OFMILLIONSNUMBER OF
KCS HOLDERSA FEWMILLION

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FutureIn the next phase of development, we will continue to improve the core of KCS and its periphery, mainly in the three aspects below:- Improve the KCC Ecosystem
The KCC chain was a blockchain project initiated and developed by the core members of the KCS and KuCoin development community.
The emergence of the KCC chain started a new chapter in the development of the KCS ecosystem by bringing a lively scene ofdecentralized applications to the chain. KCC will focus on the following areas:

Build basic
toolchain forthe blockchain

Connect thecentralized andthe decentralized

Build a global open
developer platform

Build a decentralized
autonomous
community

Build cross-chaininteroperability
protocols

Expand performance andcapacity to handle thedemands for greater
scale and performance

In other words, the development of KCC will be split into three phases: KCC 1.0, KCC 2.0 and KCC 3.0.

1.0
KCC 1.0

KCC 1.0 is built on the Ethereum source code and is compatible with EVM smart contracts. It seeks to solve the dual
problem of low performance and high cost on Ethereum. The KCC1.0 mainnet was officially launched on June 16, 2021.
Currently, millions of blocks have been produced while the number of active addresses on the chain has exceeded
hundreds of thousands. The number of transactions on the chain has exceeded millions with dozens of DApps on the
chain. The chain will become the main stage for the development of distributed finance, games, Web3.0 and other tracks
in the KCS ecosystem.

whitepaper@kcs.foundation

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2.0
KCC 2.0

As the decentralized ecosystem built by KCC 1.0 grows, the developer community expands and the community becomes
more vibrant, we will gradually begin the research and development of KCC 2.0 through the development and replacementof internal subroutines to fully realize the potential of the hardware, especially internal parallelism, without affecting EVM
compatibility.
With the incorporation of the following powerful subroutines, KCC 2.0 aims to increase the gas limit of blocks to 500
million.

StormingEVM

LightningADS

RainingDB---

To solve the problem of scalability

Ethereum's storage engine uses

In the implementation of Ethere-

at the Ethereum base layer while

MPT to implement a verifiableum, LevelDB is not only used toaccounting for the failure ofdata structure based on LevelDB.

support MPT, but also used to

Moore's Law and the trend

Every time EVM reads and writes

store historical information suchtowards multi-core CPUs, we hope

the world state, MPT needs toas block data, transaction

to improve the scalability of KCC

perform several operations onreceipts, and logs. However, theby full capitalizing on the parallel

LevelDB, and each operation ofopen source LevelDB was not borncapabilities of CPU hardware.

LevelDB requires multiple disks

for the blockchain and requires a

Storming EVM is a parallel

reads and writes, which results in

new database suitable for the

execution engine optimized andhigh storage costs and lower

blockchain’s specific workload.

implemented based on evmone. It

throughput. Thus, KCC develop-

RainingDB is a key-value paircan manage the context ofment team will implement a lower

database that is specially designed

multiple EVMs while executing

cost Authenticated Datafor blockchain workloads. It avoids

multiple transactions concurrent-

Structure.

the above traditional databaseproblem and stores blockchain

ly to maximize the underlying
processing capacity of the base

LightningADS is a key-value

historical data. Based on thislayer.

database that provides proof of

capability, it is now entirely

existence and non-existence

possible to implement an open

directly. Using a single-tiersource, high QPS Web3 API.

storage architecture, it candirectly access the underlying
storage system without relying on
the implementation of otherdatabases.

whitepaper@kcs.foundation

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3.0
KCC 3.0

Social benefits are determined by the speed and breadth of value flows. The development of KCC will also gradually movefrom the era of EVM-compatibility 1.0 and 2.0 towards the new technology of a cross-chain 3.0 ecosystem, compatible
with multiple chains and multiple assets. In terms of new technologies, KCC will focus on building infrastructure suitable
for large-scale usage and development, build a lower-cost layer 2, build a KCC SDK that allows developers to develop
intrachain and interchain protocols with greater privacy; In terms of a cross-chain ecosystem, KCC will gradually support
the inter-chain transfer of multiple assets, support interchain DeFi, games, Web3.0 ecosystems and cross-chainaccounts.
Technological innovation is the base driving force behind the advancement of the blockchain industry. We have witnessed
the growth of many great projects, and we also know the difficulties and obstacles in the initial stages. Therefore, we will
devote more resources to discovering and supporting high-quality developers and early innovative projects. KCC is notjust an ordinary public chain. It will rely on the KCS fan community and the KuCoin exchange ecosystem to become thebirthplace of technological, business and model innovation, and to create a complete closed-loop ecosystem of technology, products and users.

- Build a Payment System
KCS ecosystem will collaborate with the KuCoin exchange and the KCC ecosystem to build a payment system that can serve hundredsof millions of users. Within the KCS ecosystem, the payment system can connect all projects and participate in all activities, such as
the KuCoin exchange ecosystem’s transactions, derivatives trading and new coin launches, the KCC ecosystem’s transactions,stablecoins, lending, NFT transactions etc.;
Outside of the KCS ecosystem, the payment system can bridge to the main chains and break through the digital barriers for both
institutions and individual users, thereby minimizing the threshold for digital payments, serving users more easily and efficiently, andgrowing the KCS ecosystem’s userbase.

- Build a Web3.0 Ecosystem
Regarding Web3.0, we will intensely promote the process of decentralization and build a community of shared interests that benefits
both users and protocols. We believe that the Internet of the future should be user-created, user-owned, user-controlled, andprotocol-distributed. Thus, the blockchain as the basis, we are actively exploring and implementing the following areas:

Decentralized Identity
Management Decentralized
Identiﬁers (DIDs)

whitepaper@kcs.foundation

NFT ownership rights,
management and transactions

Construction of metaverse
network platform, including work,social networking, games, etc.

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We will build, fund and support Web3.0 teams as early developers, promoters and contributors of Web 3.0;
We will establish a Web 3.0 Incubation Fund to accelerate the construction of the Web 3.0 ecosystem;
We will build the KCS-Web 3.0 community, and explore the Web 3.0 world together with all KCS holders.

Team and Managementof KCS Ecosystem“From Geeks to Mass Adoption” not only lowers the threshold for the use of crypto technology and pushes it towards mass adoption at
both the technical and application level, but it also means that every participant in the KCS ecosystem has the opportunity to becomea manager - every voice counts. Based on this vision, we established the KCC GoDAO Foundation and formed the GoDAO community.
The current GoDAO community is mainly made up of community members from the KuCoin exchange ecosystem and the KCC
ecosystem. In the early stages, the core development team, core operation team and consultant team of KCS, as well as ambassadorsfrom all over the world will participate in it to help the community run it better and assist the GoDAO community to complete theorganizational construction from 0 to 1.
We divide the development of the entire KCS ecosystem team, management organization and governance methods into two phases:
the early phase and the autonomous phase.

Early Phase
In the early phase, we have brought together the KuCoin core team, KCC GoDAO Foundation, investment institutions, angel investors, a
few KCS Holder community representatives and professional fund management institutions to establish the KCS Management Foundation, which will be fully responsible for KCS’ future development, decision-making, investment, uses, etc.
The key work of the KCS Management Foundation encompasses the following:

R&D

Liquidity support

Funding

Link resources
within the ecosystem

KCS Management

KCS Management

KCS Management

KCS Management

Foundation will set up aFoundation will control one

Foundation will support

Foundation will attract

R&D team to support theof the largest asset pools inblockchain innovation

more experienced

KCC ecosystem andorder to provide liquidity tothrough grants and various

members/institutions

infrastructure (governancethe partnership protocols.

means.

within the crypto industry

and financial management),

In addition, it will be used toand link them together toand provide incubation

support new protocols suchpromote the development

services for upcoming

as DEXes, lending,of the KCS ecosystem.

projects.

synthesizing, vaults,
bridges, etc.

whitepaper@kcs.foundation

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Autonomous Phase
In the later stages, when the foundations of the KCS ecosystem have been laid, we will gradually try to establish more efficient, autonomous and community-based protocols and tools, and gradually remove power from the KCS management foundation, allowing users andcontributors of the KCS ecosystem to decide the future development of the KCS ecosystem, enhance the management weight of the
GoDAO community, until management is completely replaced by the GoDAO community. We are convinced that only governance drawn
from users can truly serve users. The management authority of the GoDAO community will be mainly reflected in the following areas:

Ecosystem of
the KuCoin exchange

KCC ecosystem

Payment systems

Web 3.0 ecosystem

KCS GoDAO
Investment PlanKCS GoDAO Beneﬁts
Sharing Program

In the above four areas, we will focus on the following plans:

KCS GoDAO
Analyst Program

KCS GoDAO
Listing Program

We believe that under the professional management and promotion of the foundation’s team, the KCS ecosystem will be further
improved;
At the same time, we also believe that in the process of a gradual move towards autonomy, the KCS ecosystem will certainly evolve anditerate towards the direction of discovering and satisfying user needs.

KuCoin Token(KCS)The KuCoin Token, with the token symbol KCS, was first issued on the Ethereum chain as an ERC-20 token in 2017 and migrated to KCC in
2021. The total circulation is 200 million, and the number of tokens will be deflated to 100 million in the future through measures such as
repurchase and burning. KCS is also the native token of the KCC ecosystem. As a utility token designed for the entire self-circulating
ecosystem, KCS will capture greater value with the construction and development of ecosystems such as the KuCoin exchange
ecosystem and the KCC ecosystem.

whitepaper@kcs.foundation

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Initial KCS Token Distribution
EARLY PARTICIPANTS (KCS Quantity)

100,000,000

Immediate release

FOUNDER/TEAM ALLOCATION (KCS Quantity)

65,000,000

Lock-up period of 4 years

ADVISORS/ANGEL INVESTORS (KCS Quantity)

25,000,000

Percentage of
Early Participants

50%

Percentage ofFounder/Team Allocation

32.5%

Percentage ofAdvisors/Angel Investors

Lock-up period of 2 years

12.5%

MARKET/COMMUNITY REWARDS (KCS Quantity)

Percentage ofMarket/Community Rewards

10,000,000

Immediate release

PROPORTION
OF TOTAL KCS

5%- Allocation to Early
Participants- Allocation for Market /Community Rewards

The 100 million KCS issued to early participant are available

In order to attract more users into the KCS community andfrom September 2, 2017 without a lock-up period.

ecosystem during the cold start period, the founding team, theadvisors and the angel investors have decided to jointly allocate
10 million KCS for various promotional activities during the cold
start period, as direct rewards for early investors.

- Allocation to Advisors /Angel Investors- Allocation to Founders /Team

The 25 million KCS allocated to advisors and angel investors

The 65 million KCS held by the founders and the team were

were locked for 2 years. During the lock-up period, the holders

locked for 4 years. During the lock-up period, the holders could

could not transfer or sell their KCS.

not transfer or sell their KCS.

KCS Continuous Growth &Redistribution Plan
In order to better support the sustainable development and growth of the KCS ecosystem, the founders/teams and advisors/early
investors decided to lock and reallocate their released tokens, with a total of 90 million locked. The reallocation of the 90 million KCS is
as follows:whitepaper@kcs.foundation

KCS

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A BLOCKCHAIN-BASED VALUE
SELF-CIRCULATION ECOSYSTEMADVISORS /ANGEL INVESTORSFOUNDING
TEAM
ITEM

ITEM

(KCS Quantity)

The proportion of
the number of KCS

7,000,000

22.22%The proportion of
the number of KCS

RELEASE Deflationary burning
RULES

7.78%

RELEASE Remains locked，
released linearly quarterly
RULES

ITEM

Held and released
linearly over 5 years(KCS Quantity)

20,000,000

Gift to the KCS Management
Foundation (5-year linear release)from Q1 2022, to be completed
over 5 years

Burning

ITEM

Rewards for KCS Holders &Incentives for Contributors(KCS Quantity)

TOTAL KCSLOCKED AMOUNT

20,000,000

90,000,000

The proportion of
the number of KCS(KCS Quantity)

18,000,000

22.22%The proportion of
the number of KCS

RELEASE Immediately released,
to be distributed and used
RULES

20.00%RELEASE Remains locked，released linearlyquarterly from Q1 2022,
RULES

according to the ecosystem's
development plans

ITEM

to be completed over 5 years

Gift to the KCS Management
Foundation (5-year linear
release)(KCS Quantity)

25,000,000
The proportion of
the number of KCS

27.78%RELEASE Remains locked，released
linearly quarterly from Q1
RULES

2022, to be completed over
5 years

Of the 25 million KCS held by early investors, 7 million will be donated to the KCS Management Foundation and released linearly over 5
years, and 18 million will be held by early investors and released linearly over 5 years.
Of the 65 million KCS tokens held by the founding team, 20 million will be burned, 20 million will be used as long-term incentives forcontributors to the ecosystem, 25 million will be donated to the KCS Management Foundation and linearly released over 5 years, thefounding team will no longer independently hold any locked-up early stage KCS allocation.
Regarding the 20 million KCS awarded to KCS Holders and incentives for contributors to the ecosystem, we have always believed that agood ecosystem cannot function without everyone's trust and participation. In the future, with the sustainable development ofprojects within the ecosystem, we will continue to reward this portion of KCS to KCS holders and contributors to the ecosystem overthe long term through node pledging, governance, liquidity provision, suggestions and other programs.

whitepaper@kcs.foundation

KCS

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A BLOCKCHAIN-BASED VALUE
SELF-CIRCULATION ECOSYSTEMKCS Value Capture andDeﬂationary Mechanism- Aggregation within the Ecosystem
The KCC ecosystem will aggregate various types of projects and platforms, including DeFi, NFT+, games,
Web 3.0-related application projects, etc. KCS will support and integrate with the entire ecosystem andcontinue to capture value from the following aspects, including the right to participate in the services ofrelated products and the repurchase of KCS for the benefit of projects in the ecosystem.
Pledge KCS to obtain rights
to new projects and other beneﬁts
in the ecosystem
Part of on-chain transaction
fees (gas fee)

Loan products
Game, NFT service andtransaction fees

Investment income of
ecological projects
Liquidity gains

Resource consumption fees
such as storage and bandwidth- Deﬂationary Mechanism
KCS Deflationary Mechanism: On the one hand, the KuCoin trading platform will regularly repurchase
KCS from the secondary market with part of the platform’s revenue and burn this part of KCS. This meansthat there will be less and less KCS supply in the market. In the past 4 years, KuCoin has burned tens of
millions of KCS, worth hundreds of millions of dollars.
On the other hand, in order to better support the development of the KCS ecosystem, we plan to
introduce EIP1559, the KCC fee mechanism of base fee + priority fee. Among them, the basic gas fee will
be dynamically adjusted according to the congestion of the KCC network and will lead to the continuous
destruction and deflation of KCS. The priority gas fee will go to the corresponding miner node. In thisway, both developers and KCS holders will benefit from this.

- Reward Mechanism
KCS Incentive Model: The KuCoin platform will repurchase KCS with part of its fees and distribute it tousers according to the user's KCS position on a daily basis. In the past 4 years, the KuCoin trading
platform has cumulatively distributed tens of millions of KCS incentives, which is worth hundreds ofmillions of dollars.

- Fee Discounts
KuCoin uses the size of a user’s KCS holdings as the criterion for determining users’ VIP level. The more
KCS held, the higher the VIP level, the more benefits and the greater the fee discounts. In addition, users
can also use KCS to pay for transaction fees on the KuCoin platform and enjoy discounts.

whitepaper@kcs.foundation

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A BLOCKCHAIN-BASED VALUE
SELF-CIRCULATION ECOSYSTEM

With further development of the KuCoin exchange ecosystem and thegradual improvement of the KCC ecosystem, we have built an ecosystem
based on blockchain technology around KCS with self-circulating value.
Not only has it provided a payment system that can serve hundreds ofmillions of users around the world, but it has also accelerated the arrivalof the Web 3.0 era. Moreover, the spectrum of diversified application
scenarios based on the KCS ecosystem also improves the ease of use ofblockchain technology and its related applications, lowers the thresholdfor ordinary users to enter the crypto world, and truly pushes blockchain
technology from the geeks to the masses. In the process of promoting
the fusion of the crypto world and the traditional world, it will also open
the door to the future of the digital world for us.

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whitepaper@kcs.foundation