Of course, like with any other asset, currency or token, demand and supply are the primary forces that drive the Kin token price in the market.
The higher the supply, the lower the Kin price, and the higher the demand, the higher the Kin price, and vice versa.
Also, like most digital assets created and managed on the blockchain, the Kin token is deflationary. That means the total supply is predetermined and capped.
And that is a tradition that Satoshi Nakamoto put in place by capping the volume of Bitcoin at 21 million primary units. Of course, it was mainly for practical reasons.
In the case of Kin, the cap is 10 trillion. Aside from the numbers, there is another significant difference between the Bitcoin cap and that of Kin.
Each of the 21 million bitcoins can be subdivided up to 100 million pieces (satoshis). Another way to look at it is that each bitcoin is divisible up to eight decimal points.
Meanwhile, the Kin tokens are not divisible. Each is usable as a whole number.
Nevertheless, because of its deflationary nature, we can easily make a Kin price prediction. And that is that in the long term, the kin token price will eventually rise.
In particular, because as the demand grows, with more adoption, the supply remains the same.
Another aspect of the Kin token that is similar, but not the same, to that of Bitcoin is the slow emissions of the tokens to circulation.
The Bitcoin protocol releases a particular number of new bitcoins every ten minutes, and this goes to miners as a reward for their effort in supporting the network.
It is important to point out that all 21 million bitcoins will be released as rewards to miners.
While Kin is also released in batches through the Kin Rewards Engine, there is a difference with the bitcoin emission model.
A significant amount of the total amount of the Kin tokens was issued at the launch of its ecosystem, and that is in the ICO that happened in late 2017.
During the ICO, a trillion Kin tokens were sold to investors. Another three trillion kin tokens were set aside for Kik as the Kin Foundation founding member.
It is the remaining 6 trillion that will be emitted over an extended period.
It is most likely that ICO’s significant release could have forced the Kin coin price lower than it would have been in the event the release was done like that of Bitcoin.
Nevertheless, the Kin price will most likely recover over time.
The emission serves another purpose in addition to a means of releasing new Kin tokens to circulation. It also powers the ecosystem’s game theory.
Just like the Bitcoin reward miners for maintaining the network, and in particular the shared ledger, the Kin emission through the Kin Reward Engine is a way to support developers and other stakeholders in their endeavors to build and maintain the ecosystem in one way or another.
But why did the team behind the Kin project settle on such a significant number—10 trillion kin tokens?
First, it is the anticipation that the Kin token will find use beyond the Kik messaging application.
And that even within the Kik application, it will find many uses, especially as the number of users grows.
Also, the team had probably noticed the challenge users of Bitcoin deal with in terms of paying using values in fractions and decimal points.
The anticipation is that the digital token will forever be used as whole numbers making it easy for users to price products.
So what does the 10 trillion cap mean?
In the short term, the effect might not be noticeable.
However, in the long term, the Kin token price will go up, especially as more applications using it as a utility token come online.