Japan’s most popular messaging platform, Line, has officially launched its customized virtual currency, and in-house blockchain.
According to an official press release on its website on Friday, the messaging app firm announced the launch of its cryptocurrency “LINK” and blockchain called the “Link chain.”
Link blockchain is described by Line as a service-oriented network that allows dApps function directly with their messaging platform. At the time of this report, no dApp has been launched but plans to launch two separate dApps in September are in progress. Also, ten dApps are scheduled for launch in the first quarter of 2019.
The Rationale Behind the LINK Token Distribution
The newly developed token will not be distributed through the popular Initial coin Offering (ICO) model used by most blockchain-related projects. Instead, it will be gifted to users through a reward system. This entails gifting LINK tokens to users based on their participation in the Link ecosystem.
According to the report, a total number of one billion tokens were developed by Line, out of which 800 million (80 percent) of the entire tokens will be disbursed to its users. The remaining 200 million (20 percent) tokens will be kept as the company’s reserve for developers and investors.
The tokens will be used to pay for a wide range of services on the Line platform.
In line with the Japanese SEC, residents of Japan can only earn link points as a reward for making use of the services available on the platform. These points cannot be withdrawn, deposited or transferred until LINK token gets the necessary accreditation from the Japanese authorities.
Line Dabbles In Blockchain and Cryptocurrency
Line had earlier launched its crypto exchange platform, Bitbox which supports 30 different cryptos including BTC. The exchange platform only supports crypto-to-crypto trading.
Starting from September, LINK tokens will be registered and listed among the supported tokens on the Bitbox exchange. This move will serve as an alternative for users to acquire the token, other than the reward system model as planned earlier.
Line is also making further plans to ensure the global acceptance of blockchain technology and cryptocurrencies. It announced a budgeted USD 10 million to fund this cause earlier this month.