KuCoin Token, or KCS for short, is the native digital asset launched by the KuCoin exchange in 2017. Initially operating on the Ethereum network using the ERC-20 standard, KCS later became compatible with the KuCoin Community Chain (KCC), developed by the KuCoin community.
KCS is at the core of the KuCoin ecosystem. It offers users benefits such as transaction fee discounts, daily bonus payments (KCS Bonus Program), and access to special events. It also plays a significant role in the DeFi and NFT spaces.
KCS holders can earn passive income by staking their tokens, participate in token sales (IEOs) organized by KuCoin for new projects, and even use KCS to pay for online or physical purchases.
KuCoin aims to reduce the total supply by periodically buying back and burning KCS tokens. This deflationary strategy aims to maintain the token's long-term value and ensure the sustainable growth of the ecosystem. In this guide, we will step by step explain what the KuCoin token is, what the KCS coin is, the history of the KuCoin coin, and what the KCS coin is used for.
Definition and Origins of the KuCoin Token
KuCoin Token (KCS) is an exchange-specific utility token used within the KuCoin exchange ecosystem. Like Binance's BNB or OKX's OKB, KCS offers special advantages and privileges to exchange users. Initially known as "KuCoin Shares," it was designed with a model that allowed users to share in the exchange's profits.
Launched with an initial supply of 200 million tokens, KCS was generated using the ERC-20 standard on the Ethereum network. The team, led by KuCoin founders Michael Gan and Eric Don, had been working on this project since 2013. The KCS token was launched in September 2017, in conjunction with the exchange's official launch. The KuCoin team developed this token to both reward its users and increase loyalty to the platform. Since its launch in 2017, KCS has expanded its reach alongside the growth of the KuCoin ecosystem.
The primary purpose of KCS is to provide various benefits to KuCoin users. Token holders pay lower commissions on their exchange transactions and benefit from daily profit bonuses distributed based on the amount of KCS they hold. KuCoin shares a portion of its platform revenue with users who hold KCS through this bonus program. This has established a unique system that incentivizes users to hold tokens.
Over time, KCS has evolved from being merely an exchange token to be integrated into the expanding world of DeFi and NFTs within the KuCoin ecosystem. Becoming the native currency of KCC, KuCoin's community chain, KCS is now used not only within the exchange but also in decentralized applications. This has made it a versatile token that plays an active role in staking, lending protocols, NFT marketplaces, and many other areas. Today, KCS is considered a major player in the "exchange token" category in the cryptocurrency world. It has established a strong position among giants like Binance Coin (BNB), OKB, and Huobi Token (HT). While its market capitalization is more modest than the initial exchange tokens, the sheer size and reputation of KuCoin, with millions of users trading, supports KCS's value.
KuCoin, with a large user base, particularly in Asia and Europe, and its reliability, make KCS attractive to both individual and institutional investors. Thanks to its advantages within the exchange and its potential uses within the KCC, KCS stands out as a versatile utility token in the crypto world.
The History of KuCoin Token: Key Milestones
Since its launch in 2017, KuCoin Token (KCS) has evolved alongside both the growth of the KuCoin exchange and the evolution of the overall crypto market. Here are some key milestones in KCS's journey:
- 2017: The KuCoin exchange launched in September and simultaneously launched its native token, KCS. Launched on the Ethereum network using the ERC-20 standard with a total supply of 200 million, KCS had an initial price of approximately $0.70. The KuCoin team developed KCS with a revenue-sharing model that shared exchange revenue with users, transforming the exchange's growth into a community-based reward system.
- 2018: One of the most significant steps that added value to KCS was the launch of the KCS Bonus Program. As of July 2018, KuCoin began buying back KCS from the market using 50% of its daily trading fees and distributing it as a bonus to token holders. Users holding at least 6 KCS began receiving a share of the exchange's revenue daily. During the same period, trading fee discounts were also introduced for KCS holders, with gradual discounts applied based on the amount of KCS held, reducing costs for active traders. Supported by the general market rally in the first months of 2018, KCS rose above $20; however, by the end of the year, the market decline had fallen to around $0.60.
- 2019: During this year, known as the "crypto winter," the KCS price remained relatively stable. It reached its lowest level in history at $0.34 in February. During this period, KuCoin focused on retaining its existing users by maintaining its bonus program and discount incentives. Towards the end of the year, KCS recovered to $0.90. During this period, the KuCoin team continued to strengthen its infrastructure and prepared for KCS to find wider use in the future.
- 2020: In line with the rise in decentralized finance (DeFi), KuCoin initiated work on its own chain. The KuCoin Community Chain (KCC) project was born during this period. The team focused on technical development to ensure KCS became not only an on-exchange token but also an asset usable in decentralized applications. Liquidity-enhancing partnerships were established throughout the year, KCS was listed on various exchanges, and promotional campaigns were organized. By the end of 2020, the KCS price stabilized around $0.70 and remained a stable exchange token.
- 2021 Price Peak: 2021 was one of the most active years for KuCoin Token. In the summer, KuCoin's community-focused chain, KCC (KuCoin Community Chain), officially launched. Thus, KCS became KCC's native token and began to be used as gas fees for network transactions. With the launch of KCC, decentralized exchanges like MojitoSwap and various DeFi and NFT projects rapidly emerged, expanding KCS's utility. That same year, the KuCoin team made a significant update to KCS's token economy. Starting in early 2021, the token burn mechanism was accelerated; the quarterly burns were now monthly. KuCoin now allocated 10% of its revenue to purchase and burn KCS from the market each month. This rapidly reduced the circulating supply, supporting the long-term value of KCS. The total supply, which was 200 million, fell to around 171 million by the end of the year. In addition to all these developments, the massive market rally in 2021 gave KCS momentum. In December, the price rose to $28–$29, reaching an all-time high. At the end of the year, the KuCoin team announced that they were preparing a new KCS whitepaper, generating considerable anticipation in the community. This whitepaper was released in 2022.
- 2022: The new year marked a significant institutional milestone for the KCS ecosystem. In January, KuCoin and community representatives established the KCS Management Foundation to guide the future of the token. In March 2022, KuCoin, in collaboration with the KCS Management Foundation and KCC, released the highly anticipated new KCS Whitepaper. This document focused on scaling KCS, promoting its more active use in DeFi projects, and bolstering its value over the long term. The most notable innovation was the redistribution plan for the founding team's 65 million KCS. Of this amount, 20 million were burned, permanently reducing the supply; 20 million of the remaining 45 million were allocated to incentive and reward programs, and 25 million to ecosystem funds. Furthermore, 7 million of the 25 million KCS locked by early investors were donated to the ecosystem development fund, with the remaining amount planned to be gradually released over five years. This structure brought greater transparency and decentralization to the KCS community. KuCoin CEO Johnny Lyu stated that KCS will bridge the gap between the centralized and decentralized worlds, and that they aim to build an ecosystem that reaches "tech enthusiasts to the broader public" with community support.
- In the first quarter of 2022, the total value locked (TVL) on the KCC network reached $50 million, demonstrating the growing adoption of KCS in the DeFi space. While market volatility impacted the price in the second half of the year, KuCoin's user base and global reputation continued to grow. KuCoin continued regular burns to reach its maximum supply target of 100 million units for KCS. At the same time, the KCS Management Foundation has begun preparations for the KCC GoDAO structure, which will transition management entirely to the community in the future.
- 2023: The KCS ecosystem gained momentum in parallel with the growth of the KuCoin exchange by 2023. As KuCoin took steps to comply with global regulations and expand into new markets, KCS was at the center of this expansion. This year, the number of KuCoin users exceeded 30 million, with strong growth primarily in the Asia-Pacific region, as well as in Europe, the Middle East, and Africa. The number of projects on the KCS network rapidly increased, and KCS usage became widespread in areas such as decentralized exchanges, lending protocols, and NFT marketplaces. Numerous Web3 startups were invested in through KuCoin Ventures and the KCS ecosystem funds, reinforcing KCS's importance as an ecosystem token. By the end of 2023, KCS had become more than just an exchange token but a cornerstone of KuCoin's global brand.
- 2024: This year, KuCoin deepened its platform integrations and expanded KCS's use cases. KuCoin's 2024 annual assessment highlighted the strengthening of KCS integration within the KuCard app, with users now able to directly spend their KCS balances on their cards. KuCoin also ranked among the top 10 crypto exchanges in the world in terms of net inflows in 2024. Towards the end of the year, the 53rd KCS burn was completed in November, with 31,433 KCS removed from circulation. Regular burns continued steadily as KuCoin strived to reach its target of a maximum supply of 100 million.
- 2025: The KCS and KuCoin ecosystem continued its steady growth in 2025. In the first half of the year, KuCoin surpassed 41 million registered users, further expanding its global reach. The exchange applied for a MiCA license in the European Union and also launched its locally licensed platform, KuCoin Thailand. During this period, KCS became part of both its international expansion and its Web3-based innovation strategy. As part of the 63rd KCS burn, which took place in September 2025, 83,696 KCS were removed from circulation. KuCoin has strengthened the token's long-term role by positioning KCS at the center of its Web3 plans, which encompass DeFi, identity management (DID), and metaverse integrations. As of October 2025, the KCS price is changing hands at $15.
Why is KuCoin Token Important?
There are many elements that make KCS special. The advantages it offers KCS holders, both on the KuCoin platform and within the wider crypto ecosystem, are quite remarkable. Here are the main benefits:
Trading Fee Discount
Users who hold KCS on KuCoin and choose to pay their trading fees with KCS receive up to a 20% discount on commissions. This discount is particularly significant for high-volume traders. Paying one-fifth less commission than standard fees significantly reduces costs for active traders. KuCoin also partially bases its VIP level system on KCS balance; users who hold more KCS benefit from both lower trading fees and withdrawal advantages. This structure is one of the key factors that encourages both individual investors and professional traders to accumulate KCS.
Passive Income (KCS Bonus) Opportunity: One of the most popular features of KCS is the daily bonus program. KuCoin purchases KCS from the market with half of the transaction fees it collects daily and distributes these tokens directly to KCS holders. Users who hold at least 6 KCS earn a dividend by sharing the exchange's revenue. This means that if you hold KCS, a small KCS bonus is deposited into your account daily without you having to do anything. With this model, KuCoin has distributed hundreds of millions of dollars worth of KCS to its users to date. This system incentivizes long-term KCS holding and stabilizes the token's value. While the program is updated periodically based on market conditions, the KCS bonus system is one of the most innovative features that distinguishes KuCoin from others in the industry.
Wide ecosystem use (KCC, DeFi, and NFT)
KCS is used not only on the KuCoin exchange but also as the main token on the KuCoin Community Chain (KCC). Launched in 2021, KCC features a fast and low-cost blockchain infrastructure compatible with Ethereum. KCS is paid as gas fees on this network; It also plays an active role in DeFi protocols, providing collateral, liquidity, and governance voting. Various tokens can be bought and sold in exchange for KCS on decentralized exchanges on KCC, and digital collectibles can be purchased with KCS on NFT marketplaces. The network's reaching $50 million TVL by the end of 2021 demonstrates the adoption of KCS in the DeFi space. Furthermore, KCS can be used in the real world. For example, it is accepted as a payment method for travel bookings on Travala, and some gaming platforms and online shopping sites also have KCS integrations.
Deflationary Token Model
KCS is designed with a deflationary structure, meaning its supply decreases over time. Since its founding, KuCoin has been purchasing and burning KCS from the market with 10% of its earnings. In 2021, this program was moved to a monthly period, and the burn rate was increased. The ultimate goal is to reduce the maximum supply from 200 million to 100 million. This supply reduction creates a mechanism that supports the token's value when demand remains stable. To date, KuCoin has removed millions of KCS from circulation; in 2022 alone, 20 million tokens were burned from team reserves. Thanks to regular burns, the KCS supply decreases each year, making it a more scarce and valuable asset for investors who hold it. This model is similar to Binance's BNB burns or OKX's OKB buybacks, but what makes KCS unique is its combination of this deflationary process with a bonus sharing model. This means KCS holders benefit from both revenue sharing and the potential for value growth due to the reduced supply.
Opportunities for Investors
KCS offers significant advantages not only for small investors but also for institutional traders and high-volume funds. Users who hold large amounts of KCS gain VIP status on KuCoin, gaining access to privileges such as low transaction fees, high withdrawal limits, and dedicated customer support. A transaction fee discount of up to 20% represents a significant cost advantage for active professional traders. For individual users, KCS stands out with its passive income-generating KCS Bonus model. This system, similar to bank interest, allows users to earn daily rewards based on their KCS holdings. KCS holders are also eligible to participate in new token sales through KuCoin's Launchpad and Spotlight programs. KuCoin's growing global user base—exceeding 40 million by 2025—indirectly supports demand for KCS. As the exchange's global success grows, so does the value of KCS.
KuCoin Token Developers and Community
So, who is the founder of the KuCoin token? The KuCoin Token (KCS) was developed by the founders and core team members of the KuCoin cryptocurrency exchange. Michael Gan and Eric Don are two prominent figures who played leading roles in KuCoin's founding. Michael Gan is known as the platform's first CEO and technology visionary, while Eric Don served as operational leader as COO. These two and other experts on their team began working on designing the KuCoin exchange's infrastructure and KCS token model in 2013. By the time KuCoin launched in 2017, KCS was already in place, and the team made improvements to increase KCS usage in proportion to the exchange's growth. Executives who took over the reins later on, such as Johnny Lyu (who became KuCoin CEO in 2020), also had a say in KCS's strategic direction. The KuCoin development team has continuously improved KCS's smart contract integrations, multi-blockchain compatibility, and security audits. For example, in 2021, they migrated KCS to the KCC network, making it a dual-chain asset, and clarified KCS's role in the Web3 world with a whitepaper published in 2022. To ensure KCS's long-term success, the development team established a governance model that also prioritizes community participation through the KCS Management Foundation. This foundation serves as a governing body coordinating KCS's development decisions, investments, and implementation. In the coming years, this structure is planned to be transformed into a fully community-controlled DAO (GoDAO).
KCS has a large and global community behind it. KuCoin exchange users naturally constitute its largest supporter base. As an Asian exchange, the KuCoin community was initially concentrated in the Asia-Pacific region, but it quickly gained popularity in Europe and other regions. According to current data, KuCoin operates one of the world's most global cryptocurrency communities, boasting users in over 200 countries and over 10 million active users. While a significant portion of its user base is located in Asia and Europe, there is also significant participation from North America and other regions. Because KuCoin adopts a community-focused image with its "People's Exchange" slogan, user feedback and local communities are prioritized in the promotion of the KCS token. For example, KuCoin has established official community groups in various languages (including Turkish) on channels like Telegram and Discord, and has shared KCS-related announcements and campaigns with users through these channels.
One of the factors that strengthens the KCS community is the ecosystem funds and investment initiatives established by KuCoin. In addition to the KCS Management Foundation, established in 2022, KuCoin also operates a venture capital unit called KuCoin Ventures. KuCoin Ventures invests in projects that will develop the KCS ecosystem and the crypto world in general. For example, startups developing a new DeFi protocol on the KCC network can receive funding and mentorship from KuCoin Ventures. This encourages the implementation of applications that will increase the use of the KCS token. KuCoin has also expanded the KCS brand into various sectors through initiatives such as the $100 million NFT creator fund launched in 2022. KCS holders have the opportunity to express their opinions on the future of the KuCoin ecosystem by voting in periodic community polls and governance surveys.
Frequently Asked Questions (FAQ)
Below are some frequently asked questions and answers about the KuCoin Token:
- What is KuCoin Token (KCS) and when was it released?: KuCoin Token (KCS) is the native exchange token launched by the KuCoin cryptocurrency exchange in 2017. KCS is an ERC-20 token designed to offer various benefits within the KuCoin ecosystem and was launched in September 2017 with the exchange's launch. Initially known as KuCoin Shares, KCS features a unique model that allows users to receive daily bonuses based on their exchange profits.
- Who are the founders of KCS?: KCS was developed by the founding team of the KuCoin exchange. KuCoin founders Michael Gan and Eric Don took leadership roles in the creation of KCS. Michael Gan served as KuCoin's first CEO, shaping the platform's technical infrastructure and vision, while Eric Don oversaw operations as COO. When launching KuCoin in 2017, the duo simultaneously launched the KCS token with the exchange. In the following years, figures like Johnny Lyu joined the KuCoin team and contributed to the development of KCS.
- What is the KuCoin Token used for?: KCS serves multiple functions within the KuCoin ecosystem. First, it provides a discount of up to 20% when used for trading fees on the exchange. Second, KCS holders earn daily passive income through the KCS Bonus Program—a portion of the exchange's trading fees is distributed to users in KCS every day. Third, the KCS token is used as a gas fee on KuCoin's blockchain network, KCC, and functions as a payment instrument or staking token in projects like DeFi and NFTs on this network. Furthermore, KCS grants the right to participate in token sales (IEO/Spotlight) for upcoming projects on KuCoin and can also be used as a payment method on some partner platforms (e.g., travel site Travala). In short, KCS is a token that provides versatile benefits both on the KuCoin exchange and within the external ecosystem.
- What is the total supply of KCS?: The total maximum supply of KCS was initially set at 200 million units. However, KuCoin implements a deflationary model for KCS. According to this model, KuCoin uses a portion of its monthly profits to buy back KCS from the market and burn them, reducing the circulating supply. The ultimate goal is to reduce the total supply to 100 million units. Tens of millions of KCS have been burned so far, and as the supply decreases over time, the scarcity of KCS will increase. Thanks to this burning mechanism, for example, by 2023, the amount of KCS in circulation has decreased to approximately 129 million.
- Is KuCoin Token suitable for investment?: Like any investment decision, investing in KCS depends on one's risk-return preferences and market conditions. The value of KCS is directly related to the success of the KuCoin exchange and the size of its ecosystem. If the KuCoin exchange continues to grow its user base and trading volume, demand for KCS may also increase. Indeed, as the exchange grows, the KCS price has historically experienced upward trends. However, cryptocurrency markets are highly volatile; KCS experienced losses in value due to general market declines in 2018 and 2022. Therefore, it is not possible to guarantee KCS's future performance. Before investing, you should conduct market research, assess KuCoin's position in the industry, and consider your own risk appetite. Because KCS is an exchange token, it will be a long-term investment directly proportional to your confidence in the KuCoin ecosystem. Remember, cryptocurrency investments carry risks, and it's best to make your own decisions based on your own due diligence (DYOR).
- How does KCS staking work?: KCS staking means earning passive income by locking (staking) your KuCoin tokens on a specific platform. The KuCoin exchange offers KCS staking under the name KuCoin Earn. When users deposit their KCS into the KuCoin Earn program, they earn daily or monthly returns at a rate determined by the platform. This return is usually paid in KCS or equivalent cryptocurrency. During the staking period, your tokens remain locked, and you receive an interest-like reward in return. KCS staking is separate from the KCS Bonus program; the bonus program distributes based on exchange revenue, while staking generally offers a set percentage return. For example, KuCoin occasionally offers KCS fixed staking products, allowing users to lock their KCS for periods of 7 or 14 days, earning additional returns at the end of these periods. Furthermore, on the decentralized side, some protocols on the KCS network may allow KCS staking. Staking allows you to earn additional income from KCS you intend to hold for the long term. However, it's important to pay attention to the reliability and terms of the relevant platform when staking.
If you'd like to learn more about the future of KCS and similar exchange tokens, check out JR Kripto's guide series.