Dear NKN community, it is time for an update on the NKN swap system and the token circulation in general.

First off, let’s talk about the biggest issue we are facing:

300M discrepancy between ERC-20 and Mainnet NK Tokens: ERC-20 NKN token has 700M max supply, while Mainnet NKN token has 1B max supply. The 300M difference is for mining (over 25 years).

Despite the NKN team’s continued effort, major token exchange platforms did not support our mainnet token. This makes the NKN mainnet token not very liquid. And this prevents us from migrating entirely away from ERC-20 token to Mainnet token.

NKN Foundation has used Foundation wallet (170M) to fund the token swap during the last 7 years. However this is not sustainable, because almost 100M NKN Mainnet tokens have been mined since the mainnet goes live in July 2019. 

In most recent swaps, NKN Foundation has to purchase ERC-20 NKN tokens from the open market in order to refill the swap wallet. Financially this is not feasible, since NKN Foundation is a non-profit organization.

So what does that mean and what’s next?

• We can no longer guarantee that NKN mainnet tokens can be swapped into ERC-20 tokens
• We welcome the community to develop solutions that will utilize the NKN Mainnet and create revenue for the NKN Mainnet, which will eventually sustain the NKN mainnet mining.