Line Corporation announced that it has launched its first digital token, Link, backed by its own blockchain network, Link Chain, for use within Line’s dApps ecosystem.
Unlike other cryptocurrencies or digital tokens, Link will not make an initial coin offering (ICO), but instead utilizes a reward system that gives users Link as compensation for using certain services within the Line ecosystem.
For example, a user who has joined and participated in one of the decentralized app (dApp) services related to Link can receive Link tokens as incentive. The tokens can then be used as payments or rewards within dApp services that will launch soon, and for service categories like contents, commerce, social, gaming, exchange and more within the Line ecosystem.
Line plans to register Link exclusively on its global digital asset exchange Bitbox in September, where the new cryptocurrency will be distributed to users. Along with the dApps that will be launched soon, Bitbox will be the platform where users are able to acquire and trade Link with other digital assets. Also, Bitbox will provide exclusive benefits to Link holders, such payments or discounts on trading fees and many promotional events.
Link Chain is a service-oriented blockchain network that enables dApps to be directly applied to the Line messaging platform. In addition, Line says its experience with building platform infrastructure and large scale-out networks enables both stability and minimized wait times (which has been a weakness of the decentralized blockchains), even for a system with a very large number of users.
To expand and develop the blockchain ecosystem, Line will encourage and support diverse dApp services – including third-party dApps – to participate in the blockchain network.
A total of 1 billion Link tokens will be gradually issued, depending on how the ecosystem develops. Of that amount, 800 million will be allocated for user rewards, while 200 million will be managed by Line Tech Plus, the issuer of Link, as a reserve.
For residents in Japan, Link Point will be received as rewards for activities in dApp services instead of Link. Japanese users can use Link Point within dApp services or change it for Line Points.
However until Line gets authorization for cryptocurrency trading and exchanges by the regulatory authorities in Japan, Link Point cannot be deposited, withdrawn, transferred, traded or exchanged at cryptocurrency exchanges, including Bitbox.