Kik Interactive, the Canadian company behind the Kik messaging app, has announced that it is permanently leaving the Ethereum network, as the firm migrates its digital currency Kin to its proprietary blockchain.
Originally distributed on the Ethereum blockchain through an Initial Coin Offering, Kin’s atomic swap with the network will now be closed and will instead be ported to Stellar, the company announced November 14.
In September 2017, Kik Interactive has raised nearly $100 million during its ICO. Following the company’s crowdfunding initiative, Kik has been faced with a number of scaling issues on the Ethereum blockchain, prompting the firm to consider an alternative blockchain in November, which was later confirmed in December by Kik founder and CEO Ted Livingston. By March 2018, Kik had introduced a two-chain strategy, allowing users to switch back and forth between Ethereum and Stellar.
However, despite Stellar’s markedly low transaction fees, the company has determined that the cost was still too much at scale, prompting Kik to fork stellar in May in order to completely eliminate transaction fees. Kik’s senior backend engineer Ory Band recently discussed the advantages of adopting a federated consensus model, which eventually led to Kik’s departure from Ethereum.
Emphasizing the firm’s goal to make Kin the world’s leading cryptocurrency, Livingston stated:
“One Kin on one blockchain. That’s our vision, and our strategy continues evolving as we work toward building an infrastructure that supports this.”
This would not be the first time the Ethereum network has served as an incubation hub to crypto startups that have subsequently shifted to other alternative platforms. Among such firms include EOS and Tron, both of which have since migrated to other networks following the completion of their ICOs.
As for the Kin Foundation, the Ethereum network’s limitations became apparent in December during its early network testing, which proved to be next to impossible largely due to the growing activity around the CryptoKitties app.
The network issues persisted further as the team launched a suite of new mobile products that would allow users to earn and spend the firm’s proprietary token.
Explaining the planned migration, a spokesperson for the Kin Foundation disclosed that the firm is currently working on making the necessary arrangements with exchanges to ensure that the tokens’ migration would be a one-way shift onto the Kin blockchain.