Kraken Launches Ethereum Layer-2 Blockchain Ink With 1 Billion INK Tokens

Kraken, a prominent global cryptocurrency exchange, has officially launched its Ethereum Layer-2 (L2) blockchain, Ink, along with its native INK token. This move is aimed at driving innovation in decentralized finance (DeFi). The Ink Foundation, the nonprofit organization behind the network, has announced a capped supply of 1 billion INK tokens. These tokens are designed to fuel protocol incentives and liquidity aggregation without the need for governance overhead.

This strategic launch positions Ink to compete with other L2 solutions, such as Coinbase’s Base, by leveraging Kraken’s robust infrastructure and the Optimism Superchain ecosystem. Unlike many blockchain tokens that prioritize governance or speculative trading, INK is engineered as a utility token focused on enhancing the Ink network’s DeFi ecosystem. The Ink Foundation emphasizes a “no fluff, no governance theater” approach, ensuring that INK aligns incentives for developers and users from the outset.

The INK token will primarily power several key functions within the Ink network. These include liquidity aggregation, where INK will integrate with protocols like Aave to provide concentrated liquidity pools, enabling seamless capital markets on-chain. Additionally, developers building decentralized applications (dApps) on Ink will benefit from INK-based rewards, encouraging innovation and adoption. The Foundation has also confirmed an upcoming airdrop for participants in INK liquidity pools, with hints of multiple distributions to bootstrap network activity.

With a hard cap of 1 billion tokens, the Ink Foundation guarantees no future issuance, fostering scarcity and long-term value stability. This contrasts with inflationary token models and underscores Ink’s commitment to economic clarity. Ink operates as part of the Optimism Superchain, a network of interoperable L2s. By leveraging Optimism’s OP Stack, Ink inherits Ethereum’s security while offering faster transactions and lower fees, making it an ideal platform for DeFi applications where cost efficiency and scalability are critical.

The Ink Foundation clarified that INK does not alter the network’s technical parameters, which remain governed by Optimism’s framework. Instead, INK holders will influence resource allocation and incentive programs, empowering the community to shape the ecosystem’s growth without bureaucratic overhead. Kraken’s launch of Ink and INK comes six months after the network’s mainnet debut, which went live ahead of schedule in December 2024. While Ink’s early metrics show modest traction, the INK token is poised to accelerate adoption.

Ink’s rollout strategically challenges Coinbase’s Base, which has emerged as a dominant L2. By focusing on DeFi-specific incentives and avoiding governance complexity, Ink aims to carve out a niche for developers seeking a streamlined platform. Kraken’s global reach and reputation as a Tier-1 exchange further bolster Ink’s potential to attract institutional and retail users alike. The promise of an INK airdrop has already sparked excitement across crypto communities, with users speculating on its ability to outpace Base’s token launch.

The Ink Foundation’s integration with Aave for liquidity provision ensures that early participants can earn rewards while contributing to network growth. Future airdrops may target active dApp users and bridge participants, incentivizing broader engagement. Kraken’s proactive community-building efforts, including partnerships with projects like InkySwap—a token issuance platform on Ink—demonstrate its commitment to fostering a vibrant ecosystem. These initiatives, combined with Ink’s technical strengths, position it as a compelling alternative in the crowded L2 landscape.

The INK token launch aligns with Kraken’s ambition to bridge traditional finance (TradFi) and crypto. Recent moves, such as tokenized U.S. equities trading and the Global Dollar Network’s USDG stablecoin integration on Ink, underscore Kraken’s focus on creating a comprehensive financial ecosystem. As regulatory headwinds ease under a crypto-friendly administration, Kraken is capitalizing on its regulatory compliance and global presence to drive mainstream adoption. The Ink network, with INK at its core, is a cornerstone of this strategy, offering a scalable platform for next-generation financial services.

The Ink Foundation has outlined an aggressive roadmap, including expanded DeFi partnerships, developer grants, and mainstream integration. Analysts predict that INK’s utility-driven model and Kraken’s backing could propel Ink to the forefront of the L2 race. As the network scales, its ability to deliver on promised incentives and airdrops will be critical to sustaining momentum. For more details on the INK token and how to participate in the Ink ecosystem, visit Kraken’s official blog or explore the Ink website. Stay tuned for updates on the airdrop and new dApp launches that could redefine DeFi on Ethereum’s Layer-2.