Kylin Network Token Economy Whitepaper Kylin Labs [email protected] Version 1.0.0 Kylin Network aims to Build a Cross-chain Platform Powering the Data Economy on Polkadot. It will be the Data Infrastructure for DeFi and Web 3.0 Powered by Polkadot. The Open API and SDK of Kylin Network offers any applications and blockchains (such as parachains and parathreads) instantaneous but transparent, reliable and valid on/off-chain market data and social data sources by leveraging the power of Polkadot/Substrate Framework on open networks. Kylin Network represents extensibility and a synergetic increase to the off-chain workers capability as it will provide not only access, management, insights, coordination to a greater array of data sources, but bolster validity and decentralization of the data sources themselves. We believe that it is only via Polkadot/Substrate Framework that we can ensure a cost effective solution that data consumers and Dapp Builders will actually use over centralized sources. Kylin Network, therefore, hopes to achieve complementarity and synergy with Substrate Framework while providing valid, reliable, secure, cost effective and easily-coordinated data sourcing and data analytics. The architecture of Kylin Network includes the below four major components: • Kylin Data Analytics is a combination of analytic tools designed for data warehouses. It extracts meaningful data findings, patterns, interpretation, and finally implements low-cost commercialization functionalities for the public. It also provides a query engine and RESTful API for third-party applications (Dapps, Networks, etc.) or external analytics tools (BI tools, Machine Learning, etc). • Kylin Data Oracle is an advanced decentralized data feeding protocol powered by Polkadot offering multiple, real-time data sources with much lower cost. With complementarity to and synergy with off-chain workers (OCW) as one kind of Oracle Node implementations, it can better guarantee the security and accuracy of external data by verifying the data integrity and the validity that Oracle Node provided. • Kylin Data Marketplace is an open platform for data exchange and pricing. Dapps built on Polkadot can easily and efficiently collect both off-chain and on-chain data, only paying a very competitive fee. Kylin seeks to extend the data provisional resources across all possible data types/sources including but not limited to things like social media posts, flight information, exchange rates, weather reporting, etc.
• Kylin Token KYL is the native token of Kylin Network which will play the role of gov- ernance and other utilities. KYL is necessary to secure and power the decentralized data network. KYL is the native token of Kylin Network with 1 billion total supply, and its distribution would be completed via ERC20 and testnet before the mainnet launches. Token Allocation % Vesting Seed Sale 7.5% 6.25% unlocked on TGE, then monthly vesting over 12 months Private Sale 9% 20% unlocked on TGE, then monthly vesting over 9 months Public Sale 1.5% 100% unlocked on TGE Team 9% 0% unlocked for 12 months, then monthly vesting over 24 months Advisors 3% 0% unlocked for 4 months, then monthly vesting over 18 months Parachain Bond 15% 10% unlocked on TGE, tokens under Foundation control Funding to be used to pay for the DOTs required for the Kylin parachain slot in years 1-6 Ecosystem and 5% 10% unlocked on TGE, then monthly vesting over 36 Community months Foundation Reserve 10% 10% unlocked on TGE, then monthly vesting over 36 months Mining Incentive 40% 10-year vesting period starting from the Mainnet launch I. Consensus Mechanism 1.1 NPoS consensus algorithm Kylin protocol, which is based on Substrate technology, adopts the NPoS (Nominated Proof-of- Stake) consensus algorithm. There are two parties engaged in the maintenance and security mech- anism of the chain: validators and nominators. Validators run nodes that are responsible for the production and confirmation of blocks, while Nominators, by Staking their tokens, are entitled to nominate trusted validators to obtain Staking rewards. As for the operation of the NPoS consensus, Kylin is considering two solutions: 1) Becoming a parachain on Polkadot by participating in Polkadot’s card slot auction; 2) Recruiting validators to run an independent chain. Both solutions have their pros and cons, but we prefer the former, as it will take us a step further to our goal of building a cross-chain oracle. As a proviso, Kylin is in general working with a dynamic and cutting-edge context, so what may seem best practice today, may not be best practice tomorrow, and as such we must inform
that some of the details and perhaps even fundamentals of what we lay out may be subject to fine-tuning and change. 1.2 Inflation rate Under the NPoS consensus mechanism, the rewards for validators and nominators mainly come from the further issuance of tokens, which is also the main reason that underlies the inflation. The inflation rate cannot be adjusted by any party, except by the automatic algorithm. The formula of the NPoS inflation model is as below: I0 + x iideal − I0 χideal for 0 < x ≤ χideal IN P oS (x) = , and I + (i 0 ·χ ideal ideal − I0 ) · 2(χideal −x)/d for χideal < x ≤ 1 i(x) = IN P oS /x. In the formula, χideal is the expected, or ideal staking rate of the Kylin network; Iideal is the expected annualized rate of return, which represents the annual return(APR) that a nominator can enjoy when the ideal Staking rate is in place; R0 represents the inflation rate when the Staking rate is 0, which is literally the default inflation rate; and d represents the attenuation rate of the inflation rate. Kylin Network regards the ideal Staking rate as 60%. If it is too high, the circulation and use of KYL tokens will be restrained. If too high, only limited tokens will be used for real utility. If too low, the security of the chain cannot be guaranteed. On top of that, when the Staking rate reaches 60%, the annualized rate of return will be 12%, which is a reasonable figure, striking a balance between the inflation rate and the Staking incentives. Therefore, the parameters of the above formula is set as below: • Expected Staking rate: χideal = 0.6 • Expected annualized rate of return: Iideal = 0.12 • The inflation rate when the Staking rate is 0: R0 = 0.025 • Attenuation rate d = 0.02 A balanced dynamics of staking rate and staking APR can be achieved when the parameters are set as above: • When the Staking rate is less than 60%, the average annualized RoR of Staking is greater than 12%, so more tokens will be Staked. • When the Staking rate is equal to 60%, the average annualized rate of return of Staking is 12%.
• When the Staking rate is greater than 60%, and the average annualized return rate is lower than 12%, then redemption instead of staking is encouraged by the system. The following figure shows the relationship between the simulated inflation rate, Staking rate, and annualized rate of return: In the figure above, the X-axis is the Staking rate, the blue line is the annual inflation rate, and the green line is the annualized rate of return. 1.3 Block rewards Every time a block is produced on the Kylin mainnet, the system will issue a certain amount of KYL tokens as rewards. The reward size is determined by the real-time inflation rate of the network. The inflation rate is determined by a formula, and so it is not a dynamic value affected by the Staking rate of the network. Block rewards are distributed by the following rules: • 80% to validators and nominators. • 20% stored in the Kylin Treasury, which will fund community growth, project development, incentives, etc.
1.4 Block slash When a validator commits malicious behavior, such as off-line, double-signing, etc., they will be punished in the form of the confiscation of certain amounts of KYL from Staked tokens and nomi- nators’ assets. The amount of Slash penalties is affected by the status of the network. For example, if the off-line rate of the entire network is high, then the corresponding Slash for a single validator will be graver, too. The case is the same in terms of double-signing as well. In extreme cases, for example, when more than one-third of validators have double-signed, then 100% of the Staked tokens will be Slashed. 1.5 Treasury In order to ensure the sustainable development and decentralization of the protocol, Kylin has set up a Treasury to motivate individuals or teams to contribute to the project. Any use of the Treasury must be approved through online governance, and developers can publicize their proposals to the public. Once a proposal is passed by voters, it will be financially supported by the Treasury. In the early stage of Kylin, Treasury will mainly support in the following aspects: • Project Development - Motivating data providers, oracle contract developers and product testers, etc. • On-chain governance - Encouraging the development of on-chain development tools, the com- munity participation in on-chain voting governance, etc. • Developer incentives - For example, Kylin can delegate to the community the development of block explorers, dashboards, data oracles, and contributors can be supported by the Treasury. • Kylin Ecosystem Establishment - Incentivizing behaviors that make Kylin’s ecosystem more flourishing, such as short-term incentives when accessing different DeFi protocols, technical research, or publicity around the future development of Kylin, etc. The revenue sources of Treasury mainly come from the following two aspects: 1. Part of the data usage fee: When users use Kylin data services, 20% of the service fee will be added to the Treasury. 2. Part of the block reward: 20% of the block reward will be added to Treasury. 1.6 On-chain governance Any decision regarding the use of Treasury funds will be made by Kylin’s on-chain governance forum in the future. That is to say, the community can vote with their KYL tokens on the governance of the Treasury. However, in the early stage of Kylin, the team believes that it may disappoint
everyone if we blindly pursue decentralized governance. Therefore, during the early phase, the Treasury governance will be led by the foundation, which is represented by the Kylin team, and assisted by the community. II. System Overview Kylin Network will be divided into two parts: chain and application. The chain mainly protects the security and consensus mechanism of the network, while the application refers to the decentralized cross-chain data service. Two roles are involved in the chain part: Validators and Nominators. 1) If you connect to the Polkadot parachain, the rewards issued by the system will be given to the Validators in the Polkadot ecosystem, and Nominators will participate in nominating Kylin Network through the Polkadot chain. 2) If you build the mainnet by yourself, Kylin will recruit Validator nodes from the community and distribute the block rewards to the recruited Validators. Nominators will participate in the nomination of Validators through Kylin’s mainnet. Either way, Stakers are required to pledge KYL tokens and use the NPoS algorithm to calculate the inflation rate based on the Staking rate. As for the application part, the main challenge for Kylin is to establish a secure and decentralized cross-chain data service. The business logic will be introduced in the following passages. III. Data Ecosystem 3.1 Main participants of the network 1) Oracle Programmer Oracle Programmer (OP) is responsible for establishing a data index algorithm on Kylin, which is responsible for publishing Oracle Script. Oracle Script is an executable program that tells the Miner what and how to index, as well as how to create and output the results. OP can publish any Oracle Script that is considered valuable on the Kylin network. For example, if an OP is interested in the price of cryptocurrencies, it can publish a data index algorithm on how to index prices and provide quotes. Another OP, who believes that the Oracle Script of the New York weather forecast will have great value, can publish information on how to index weather updates and output a fair value. 2) Consumers Consumers are the demanders of Kylin’s data services. They can select and consume, with KYL tokens, the data service through various Oracle Scripts published by OP on Kylin.
3) Miners Miners are responsible for running the index algorithm according to the Oracle Script selected by the user. They encode the original data and continuously provide data to the Oracle center, and finally aggregate an on-chain data package that will be provided to the Consumer. Miners will be randomly selected from the Validator whitelist. 4) Arbitrators When a Miner provides data to the Oracle center, it needs to be verified by Arbitrators first. Only the data that is verified will become valid quotation data. Arbitrators will be served by members of the governance committee in the Kylin network. If a Miner is found to be engaging in malicious behaviour, its deposits will be counterfeited and then distributed to Arbitrators. 5) Data Providers The data providers are the source of the most primitive data, such as CoinGecko and Coinmarketcap in the quotation oracle, or the New York weather station in weather forecast oracle. Anyone with data can become a Data Provider and obtain query income. 3.2 Proposal overview The overview of Kylin’s oracle data business is shown in the figure below, which can be divided into 5 steps:
1) Step 1: A Consumer chooses Oracle Script(s) A Consumer can choose one or more Oracle Scripts through the Oracle Script Market of the Kylin Network client, and make payment in KYL tokens to request to query a certain data value. In the early stage, the Kylin team will release the Oracle Script on quotes of cryptocurrencies, because this is the first application scenario for Kylin. Later, we will open the permission to publish Oracle Script to the community, which will publish any Oracle Script that it considers valuable. A user who publishes Oracle Script is called an Oracle Programmer. Once a user publishes an Oracle Script, the Oracle Programmer will have the opportunity to earn from the user’s query fee. 2) Step 2: Assign Miners After receiving the Consumer’s query request, the Kylin Oracle Center will immediately code different validators on the chain according to the VRF random algorithm, and then select them through random number generation. The selected ones will become the Miners who execute the Oracle Script. The system will tend to give priority to validators with more popular nominations and code for them, because they have a larger number of locked KYL tokens. For them, the cost of performing malicious acts is high. However, we will ensure that every validator stands a chance to be selected as a Miner. 3) Step 3: Miners execute the query task Miners execute the Oracle Script algorithm contract, querying multiple Data Sources indexed by the Script algorithm for raw data, request random numbers according to the Verifiable Random Function (VRF) algorithm, and then finally quote to Kylin’s oracle center. The VRF algorithm ensures that Miner will not engage in malicious actions collectively to paralyze the quotation system. More details will be shown below. 4) Step 4: Data verification The Arbitrators in the Kylin network will verify the random number uploaded by each Miner. Only the data provided by the verified Miner is considered valid. Miners who upload invalid data will have their Staked KYL tokens confiscated and collected by the Reward pool. 5) Step 5: Data aggregation and uploading The off-chain module of Kylin oracle packs the final data result through the aggregation algorithm based on the index data provided by each Miner from various data sources. Thereafter, the final result will be uploaded to the Kylin Oracle center and stored permanently there. Consumers can have access to this data.
At the same time, the system will generate a data proof for the data query result, which contains the data result, upload time, corresponding Oracle Script hash, and other information. The proof will be recorded on the Kylin Network chain for future queries. Regarding the aggregation algorithm, Kylin will enable user customization on aggregation meth- ods. For example, you can choose the average, the median, or the weighted average value. Currently, Kylin’s algorithm will first eliminate outliers, such as data fluctuations of more than 20% in the same event, in order to ensure data security. 3.3 Network incentives In the network, KYL tokens play a very important role. There are two token distribution modules in the system. 1) Consensus mechanism module with block reward as the core In this module, major participants are Validators, Arbitrators and Nominators. The block reward distribution ratio is as follows: • The nominators who nominate the Validator by Staking KYL will be distributed 70% of the block reward. • Arbitrators will obtain 10% block reward through the verification service of Miner for the Kylin chain. • The remaining 20% block rewards will be transferred to the Treasury for project development.
2) Business module with data service fees as its core A Consumer needs to pay KYL tokens for query services. The main participants are Miner, Oracle Programmer, Data Provider, Team, and Treasury. The distribution ratio is as follows: • Miners undertake a large amount of data indexing and calculation work, and will receive 45% rewards from the KYL tokens paid by Consumers. • Oracle Programmer is the creator of the data index algorithm used when users query data, and will receive 15% of the rewards. • As the source of data, Data Provider will receive a 10% query fee as an incentive to provide high-quality data source. • The Treasury will collect 20% of the rewards for the continuous development of the project. • As the promoter of the project, the Kylin team will get 10% of the rewards as an incentive. The distribution method in the above framework can be adjusted through community gover- nance in the future. IV. Security Mechanism 4.1 Decentralized data source It is an important prerequisite for the network security of Kylin oracle to ensure the decentralization and data security of data providers. Kylin Network will first invite some well-known Data Providers, such as Coinmarketcap, CoinGecko, Coinbase, etc. At the same time, anyone can apply to become a Data Provider through its registration page where all info will be reviewed. For data providers that have passed the review, the data they publish will be officially released on Kylin Network for the Miners to index. For the same Oracle Script, we will guarantee at least 3 high-quality Data Providers to ensure the decentralization of data sources. 4.2 VRF algorithm using verifiable random function An essential part of Kylin’s oracle system is the assignment of random numbers to Miners, ensuring their absolute randomness and effectiveness. Only if absolute randomness and fairness are guar- anteed will the data uploaded by Miners be considered as not being malicious. Assuming that the random number generator used by Kylin is compromised or can be predicted, the malicious nodes can be elected as Miners that account for most of the panel by predicting the random numbers or controlling the random number generator. In the worst cases, the oracle will be totally occupied. Therefore, how the security and unpredictability of the random number generator is ensured is of great significance for ensuring the security of data.
In order to avoid the collective fraudulent behaviour of Miners, Kylin will use the Verifiable Random Function (VRF) algorithm to ensure the absolute security and verification of the random number generation process. In the VRF algorithm, elliptic curve encryption and zero-knowledge proof algorithms are used to ensure the verifiability, uniqueness and randomness of random number generation. VRF algorithm can be divided into three parts: 1) Function G that generates public and private key pairs Assuming that the base point of the elliptic curve is O and the order is n, the public-private key pair generation algorithm is as follows: A1: Choose a random number k = [1, n − 1] A2: Generate a pair of elliptic curve keys, where the private key is k and the public key is Y = kO 2) Function F that generates random number and proof Input: message m, private key k. Output: random number v, proof. B1: Choose a random number r = [1, n − 1] B2: Use the hash function h1 to calculate H=h1(m), and map the message m to a point H on the elliptic curve. B3: Calculate rH, rO. B4: Use the function h2 to encode the input into an integer s, and s = (rH, rO) B5: calculation t = (r − s ∗ k) mod n B6: calculation V = kH B7: Use the function h3 to encode the point on the elliptic curve into an integer, obtain the random number value=h3(V), and prove that the proof is (V;t;s). 3) Verification function V Input: message m’, proof proof’
Output: legitimacy (valid or invalid) C1: Use the hash function h1 to map the message m’ to a point H’ on the elliptic curve. C2: calculation U1 = t0 H 0 + s0 V 0 U2 = t0 O + s0 Y C3: Calculation s0 = h2 (U1 , U2 ) C4: If s = s0 , it indicates that the random number is valid and the verification is passed, and the output is valid; otherwise, it indicates that the random number is invalid and the verification is not passed, and the output is invalid. In Kylin’s VRF algorithm, the system requires the Miner’s private key as the input value k used to request the random number. kH can be calculated through the elliptic algorithm formula, and be encoded into an integer Value as the final output random number. The process guarantees the uniqueness of the private key of the Miner. Meanwhile, the elliptic algorithm function has the features of hash functions, ensuring the uniqueness and randomness of the random integer Value. The random number verification requires Miners to submit proof. Even if a certain Miner is compromised, the result of the data output won’t be manipulated or affected, because it cannot pass the encryption verification on the chain. When the Miner fails to submit Proof during the verification process, it will be arbitrated by Arbitrators in the network, and the Staked KYL tokens will be confiscated. The failed Miner’s credentials will also be recorded in the network. 4.3 On-chain arbitration mechanism Kylin’s VRF algorithm contract can be divided into three parts: the public and private key gen- eration contract, the random number and proof contract, and the verification contract, as given below: • Keygen(r) → (V K, SK). The key generation algorithm generates a pair of verification public key VK and private key SK from a random input. • Evaluate(SK, X) → (Y, ρ). The evaluation algorithm takes the private key SK and mes- sage X as input, and outputs a pseudo-random string Y and evidence ρ. • Verify(V K, X, Y, ρ) → 0/1. The verification algorithm will verify the public key VK, message X, output Y, and evidence ρ as input. If and only if it verifies that Y is the output generated from the input SK and X by the evaluation algorithm will the output be 1. In order to ensure that the VRF contract is decentralized and not controlled by a single point, we will select a group of special validators as Arbitrators, who will be responsible for running the VRF algorithm contract and verifying the random number, which is uploaded by the Miner, and the Proof.
When a Miner’s random number cannot be verified, or a Miner cannot submit the random number and Proof within a specific period, Arbitrators will initiate a Challenge, which will be recorded on the Kylin blockchain and will be tamper-proof. This is to maintain the traceability of the system. When Arbitrators challenge a Miner, the Kylin system will automatically calculate the number of Miners in the Challenge state and the Challenge history of that Miner. The number of KYL tokens that will be confiscated is determined by the above factors. Miners who have not been verified will be blacklisted and permanently removed from the Miner whitelist. In the future, they will not be able to participate in the Kylin network or receive rewards. 4.4 Security deposits 1) Miners Validators whose Self-bond amount exceeds 100,000 KYL tokens can apply to join the Miner whitelist. Arbitrators will check the data uploaded by the Miner. If malicious acts are found, the Staked KYL tokens will be fined. The fines will be calculated by the following formula: min (3k/n)2 , 1 n is the total number of Miners, and k is the number of challenged miners in an Era. If the number of evil miners in the current network exceeds 1/3 of the total, all nodes’ Staked KYL tokens will be Slashed. Slashed KYL tokens will become Arbitrators’ reward. 2) Arbitrators In order to ensure fairness for all Arbitrators, Kylin will initially designate 21 reputable nodes to serve as Arbitrators, whose information will be released to the public. There are two ways to recruit Arbitrators: • We can randomly choose from validators, but we have already done that for miners, which stands the opposite side of arbitrators. • We can choose some certain nodes to run it, so it is better for some notable institutions to join in, which has a slight chance to do evil things. After these foundational nodes are established, we will begin our 100 validators program, and iterate to the 1000 validators program. The details for these will be released later. Each Arbitrator needs to Stake at least a number of KYL tokens (e.g. 500,000) in the Kylin Network contract. While running the VRF algorithm contract, Arbitrators can obtain rewards by verifying and Challenging Miners. However, due to the margin system and strict Slash policy, Miners’ malicious behavior may happen in extremely rare cases and the Arbitrators may not be fully incentivized. So, Kylin will
add 10% of the block reward to the Arbitrator’s rewards pool, and calculate the basic reward based on the proportion of KYL tokens deposited by Arbitrators. In addition, we will also establish an online evaluation system to score the performance of Arbitrators, evaluating their online duration, the number of challenges initiated, etc. Those factors will translate into the Arbitrator’s income (in the form of KYL tokens). If an extreme event occurs, such as the online duration being less than 1/3 of the requirement, the Arbitrator’s Staked KYL token will be deducted and it will be disqualified. V. Governance Structure Kylin Network is about addressing the needs of demanding users. This means delivering quality, security, speed, predictability and transparency. Considerations for Governance Priorities • Maximise participation • Prevent dominance by single parties • Provide decentralised security • Facilitate cohesion in order to prevent forking • Stability of the protocol • Facilitate inclusion in decision-making • Perception of all above. The Kylin Network Board is supervised by the third-party authorities, with a clear purpose defined in its Public Deed. The Board is tasked with ensuring that the Kylin Network protocol continues to develop and remain relevant to the needs of users within the parameters of the project’s purpose. $KYL Stakeholders will assume a central role in suggesting and determining the priorities of Kylin Network through the Governance Committee, whilst the Board will act as guarantor that the Kylin Network principles of privacy with accountability and the Public Deed of the Kylin Network Project are adhered to. The Project Board will retain the role as supreme body of the Project after full decentralization, but key functions will be delegated to the Governance Committee. Decentralisation is in five steps: • Pre-mainnet The Kylin Network Board will appoint a Governance Committee with five members to oversee the governance decentralization process, on-chain governance mechanisms, tokenomics & inflation. Governance Committee 100% appointed by Kylin Network Board
• Stable mainnet +1 year $KYL Stakeholders appoint two members of the Governance Committee by on-chain vote, expanding the Committee from five to seven members. The Governance Committee can propose changes to the protocol on-chain. 28,6% of the Governance Committee is appointed by the $KYL Stakeholders. • Stable mainnet +2 years $KYL Stakeholders appoint two further members of the Governance Committee by on-chain vote, expanding the Committee from seven to nine members. Stakeholders can propose changes to the protocol and vote for the changes on-chain. The Governance Committee will oversee the implementation and ordering of decisions made by the Stakeholders. 44,4% of the Governance Committee is appointed by $KYL Stakeholders. • Stable mainnet +3 years $KYL Stakeholders appoint two members of the Governance Committee by on-chain vote, replacing two of the initial five Committee members. Committee total membership remains at nine members, with two seats up for election every year. $KYL Stakeholders can implement changes to the protocol. The Governance Committee acts as the executor of decisions passed by the Stakeholders. 66,6% of the Governance Committee is appointed by $KYL Stakeholders. • Stable mainnet +4 years 100% of the Governance Committee will be appointed by $KYL Stakeholders. VI. Token Value Captured 6.1 Utilities of KYL token The Kylin Network native token KYL is necessary to secure and power the decentralized data network. The use-cases and utility of KYL include but not limited to: • Stake to be a Miner or Arbitrator: All miners are required to stake KYL with a higher stake equating in a high probability of being selected to fulfill data requests. • Intermediary of Exchange: KYL token will be used to pay as a transaction, query fee, and also for data access behind paywall (private APIs). • On-chain Governance: KYL token holders are able to vote for the protocol upgrades and parameter changes on Kylin Network. • Purchase Data Services: KYL token can be used for a contract-based data exchange infrastructure for data feeding, data querying and data analytics.
6.2 Value captured by KYL token The value captured by KYL is the increase of data economy contributed by Kylin Network com- ponents. • Decentralization and security of data services • Off-chain and on-chain data resources • Insights and added value from Data Exchange Besides, the core value captured based on smart contracts is trustless and permissionless for any participants. 6.3 Ecosystem resources • On-chain Data: It will display a comprehensive range of on-chain metrics, from the basic on-chain dormant, active, hyperactive addresses, block heights, block size, and fees to the different types of UTXO values and transactions. • Off-chain Data: Off-chain data is any non-transactional data that does not exist in the blockchain, or requires the ability to be changed or deleted. It includes but is not limited to things like social media posts, flight information, exchange rates, stock market price, weather reporting, etc. • Data Services: It handles a variety of services including data virtualization, analysis, pattern-forming. It centralizes and monitors metrics for management, reuse of data types, and enforce data visibility and access rules. • Data Exchange: Data exchange encompasses services from pricing, offering medium of exchange, creating a marketplace to the final change hands and communication of data. 6.4 Application scenarios • Decentralized Insurance Automatic Payment: Through the Kylin Network to obtain timely and reliable events outside the insured chain, blockchain-based decentralized insurance can realize automatic payment of insurance such as flight delay insurance. • Stable Coins and Crypto Derivatives: Stablecoins and encrypted derivatives need to frequently obtain off-chain real-time price data. Kylin Network can obtain reliable data in multiple scenarios in real time and efficiently. • Crypto Asset Lending Platform: Kylin Network can provide real-time and reliable cur- rency prices and borrower’s social media information, providing strong support for the dy- namic determination of loan interest rates.
• Cross-chain Decentralized Exchange: The lightweight Kylin Network interface that can be deployed on multiple chains provides the possibility for decentralized exchanges to realize cross-chain atomic transactions. • Decentralized Casinos and Games: On-chain decentralized casinos and games often require safe and reliable random injection. Kylin Network random number engine provides unpredictable and verifiable random number generation. • Blockchain Computing Market: Commercial computing such as machine learning train- ing models and 3D rendering needs to complete a variety of complex computing tasks. The off-chain computing market provides verifiable and unlimited off-chain computing capabilities. VII. Community Engagement Kylin’s current community engagement strategies include: • Exposure on Leading Media Channels: We will release additional articles on Forbes, The Block, CoinDesk, CoinTelegraph and many other leading media channels. • Ecosystem Development Lead Program: We will launch an Ecosystem Development Lead Program to recruit and get more technology and development contributors involved into our project. • Promotion of Online and Offline Events: We will publish an article on medium upon the progress of this project. Meanwhile, we will join Polkadot related off-line events and do online AMA sessions to promote the project to the Polkadot community. Kylin’s future community engagement strategies include: • Bounty Program for General Community: We will reward users who contribute pos- itively to community building and content creation through an Ambassador Program. The community management team will be available 24/7 to answer questions and facilitate dis- cussions in community channels. • Incentive Program for Dapp Developers: Kylin Network focuses on giving developer support through both offline and online channels. Developers can integrate the data with only a few lines of code. The simplicity of integrating this project makes it easy for any developer to experiment. • Mining Program for Node Runners: Kylin Network is targeting a global pool of 100 nodes upon the completed rollout of Kylin Network to achieve the highest degree of decen- tralization as possible. Gradually, reputable and trusted public nodes will be onboard onto this project to ensure the stability of the network.
• Incentive Program for Data Providers: After the main functions are completed, we will set up an incentive program to encourage more market data and social data sources as premium data providers for Kylin Network. • IPO during Parachain Auction for Community Members: Kylin Network may hold an Initial Parachain Offering (IPO) and reward users for helping our auction with KYL tokens.