Kittycoin SOL – is this new cryptocurrency Dogecoin 3.0? Find out in this comprehensive review article. The truth about the Kittycoin memecoin revealed.
Before asking yourself whether Kittycoin SOL could be the next Dogecoin or deciding which meme coin to invest in, it’s important to consider what are the key elements that would attract you to any new cryptocurrency coin project. Consider this part of your due diligence.
Dogecoin first appeared in 2013 and it was initially created as a joke coin. Kittycoin is a serious meme coin project even though its playful imagery is based around cats – the project (like the Lovecoin Project) wants to make a difference in the world via its charity fundraising functions. Kittycoin is based on the Lovecoin project which has already proved its ability to successfully raise money for worthwhile charities.
While Dogecoin was considered the first dog-inspired meme coin, it achieved a market capitalization of over $85 million by May 5, 2021. Dogecoin’s value increased exponentially and quickly only because of celebrities like Elon Musk, Mark Cuban and Snoop Dogg, hyping the coin and generating interest in the coin.
For serious investors in cryptocurrency however you must look at the key elements behind the use case of a coin. The Kittycoin Project is a serious cryptocurrency coin project with a philanthropic underpinning. This exciting new coin project has built-in benefits for its users as well as for the charities it will be ultimately supporting. Before jumping into investing in a new coin, you need to first consider the fundamentals and tokenomics behind the coin project you are considering.
Understanding Kittycoin Tokenomics
Token economics or tokenomics is a study of economic incentive modelling and token distribution in cryptocurrencies. New cryptocurrencies grow in value when there is an incentive to either use or hold that token.
Holding a token over an established period of time is called “staking”. Kittycoin rewards both users and those who buy, use and hodl (by staking) via the Diamond Paws Staking Contract. The key fundamentals behind Kittycoin tokenomics are illustrated below:
Kittycoin’s Supply is Deflationary
Any cryptocurrency which has a deflationary token model means that there is a defined amount of coins or tokens available. Kittycoin has a maximum coin supply of 3.69 trillion. The supply is deflationary and includes a coin-burning ecosystem.
The Kittycoin token’s deflationary supply means that even if demand for the token increases, the supply will not. This in turn reduces the coin losing value through inflation which is common with most fiat currencies and cryptocurrencies which are not deflationary in nature. Cryptocurrencies which are inflationary in nature include Ethereum (ETH) and EOS and Dogecoin.
While critics could argue that the limited supply could lead to users hoarding tokens (even through staking) that the tokens could fall out of circulation lowering their overall value. However, the system behind Kittycoin and particularly the staking options – make this unlikely.
Kittycoin has a maximum supply of 3.69 Trillion coins – which in cryptocurrency parlance – is relatively limited. By comparison, Dogecoin has no maximum supply. The way that Dogecoin is mined means that miners can earn 10,000 DOGE per block and 14,400 new DOGE tokens are created every day which are then sold to the market or stored by miners’ themselves.
At the present time there is approximately 131.28 billion DOGE in circulation. That number will rise at the rate of 10,000 DOGE each minute, indefinitely. This makes Dogecoin by nature, inflationary and not really attractive as a longer term investment.
More serious cryptocurrency investors will be drawn to Kittycoin because of its deflationary characteristics and the fact that its use goes toward supporting charitable causes in the community. Kittycoin’s deflationary nature and limited supply is a big selling point.
The deflationary supply operates quite simply. This is where 50% of all platform fees collected from the upcoming DEX and NFT platform will be used to buy and burn Kittycoin Tokens. This will reduce the amount of Kittycoin tokens in supply every day.
The Kittycoin Project will eventually include both NFTs and game play using a DeFi protocol. Users will be able to play-to-earn Kittycoin within the game’s own metaverse. The network effects in the Kittycoin metaverse also are expected to multiply as the coin matures and more users come onboard the project.
The fact that Kittycoin SOL will be available and tradeable on its very own decentralized Kittycoin Exchange DEX also gives it a strong use case. The staking features allow users to earn interest simply by staking (or hodling) their Kittycoin for a defined period of time in the Diamond Paws Staking Contracts and this process is outlined below.
A final word around Kittycoin tokenomics is that you need to use a tiny amount of SOL (Solana), usually less than one penny to pay the transaction fees when spending or sending Kittycoin Tokens to another person. You do this by first purchasing Solana Token from either Binance.com or Coinbase.com. However, if you purchase Kittycoin SOL tokens directly from the members’ section of the Kittycoin website you will be allocated a small amount of SOL by default.
Kittycoin tokens can be stored on a Solana-compatible wallet. Kittycoin SOL runs on the Solana blockchain as an SPL token. Phantom wallet is the recommended wallet and you can set this up in minutes simply by visiting https://phantom.app/ The Phantom Wallet is a simple web-browser based application and can be installed quickly and easily using Google Chrome, Brave, Firefox or Internet Explorer.
Our necessary disclaimer is that Kittycoin tokens won’t initially show any dollar value on your Phantom Wallet. Don’t be alarmed by this: because the price feed isn’t integrated into the Phantom wallet yet. As the coin matures, Kittycoin’s price feed will be activated and you will be able to check the balance of your Kittycoin tokens.
How to Stake Kittycoin and earn interest?
Proof of stake refers to a mechanism by which people can mine new coins, and it’s a more environmentally-friendly way of doing so than the system Bitcoin uses.
The Diamond Paws staking contract enables any Kittycoin holder to stake their Kittycoin via a DeFi Staking Contract. It works by encouraging Kittycoin holders to hold onto their Kittycoin SOL tokens for the long term – where you can earn up to 24% interest per year.
The Diamond Paws staking contract works where 18.45% of the Total Kittycoin SOL Token Supply is allocated to payout stakers. You simply stake your Kittycoin Tokens via “Diamond Paws” and you earn 2 percent interest per month which is measured and paid out in Kittycoin SOL tokens.
Kittycoin developers, in the interests of transparency, have been clear to explain that the interest earned is measured in Kittycoin SOL tokens and there is no guarantee made in relation to USD price appreciation.
The staking process with Kittycoin SOL is flexible. There are no mandatory coin lockup durations which means you can “stake” and “unstake” at any time without penalty. Another standout feature from the Diamond Paws contract is the voting privileges given to staking contract users. This means that as part of the staking process, users can vote to decide where the 10% Kittycoin SOL Charity Reward is allocated. Double benefits: charity and profits. To learn more about how Diamond Paws Staking Contracts work go to http://diamondpaws.kittycoinsol.com/
The Diamond Paws Staking Contract will conceivably work to reduce the coin’s volatility – insofar that users are constantly pumping and dumping the coin. By encouraging users to stake their Kittycoin SOL for an established period of time (which is flexible and not mandatory) should in theory increase the lifecycle of this meme coin and give it longevity.
Kittycoin Web 3.0
Kittycoin will be eventually be part of Web 3.0 – a blockchain powered decentralized ecosystem.
Kittycoin meme coins, NFTs and the entire ecosystem will be part of a blockchain-powered decentralized coin ecosystem – referred to as Web 3.0, a concept first identified by Ethereum co-founder Gavin Wood in 2014.
You can think of Web 1 as the internet during the period from roughly 1991 to 2004 where the first websites we saw were just static web pages. The second iteration of the Internet, Web 2 appeared from 2005 onwards where the Internet evolved into a platform for user-created content uploadable via social networking sites or blogs. Web 3.0 takes Web 2 a step further by seeking to place the created content on decentralized blockchains. This version of the internet is still considered to be in transition as more and more ways of using decentralized blockchains appear.
Decentralized blockchains can give users more freedom and control over their digital content. Users can also earn income from their user-created content on the blockchain (similarly to the ways they earned income on Web 2) but this time with more potential to create uncensorable content targeted to a dedicated customer base.
This is where Kittycoin SOL comes in and will find its place firmly within Web 3.0. As the project is expanded with the Kittycoin NFT platform, users will be able to create, sell and trade NFTs across multiple blockchains.
NFTs can be created and earned even in game play. Many popular meme coins and tokens are found on Web 3 – particularly NFTs where users can elect to participate in the evolving metaverse.
Kittycoin vs Dogecoin
Dogecoin (DOGE) which was created in December 2013 by software geeks, Billy Markus and Jackson Palmer as a joke cryptocurrency. It was a fork from Litecoin (LTC) and it uses the same Proof of Work (POW) with no maximum supply. Dogecoin is based on Scrypt algorithm and transactions using Dogecoin take around one minute to confirm. However Dogecoin has an unlimited supply and the coin is inflationary by nature.
Kittycoin may not be hyped by celebrities (yet) but its underlying use case make it stand out from the crowd of thousands of other cat or dog inspired meme coins. New users have already joined the Kittycoin and not only signed up for their first free airdrop of community coins but are also purchasing the coin on the platform. Those users have reported that the platform makes it easy to purchase Kittycoin without needing to use multiple exchanges or swapping their Bitcoin to buy a parcel of the coin.
Unsurprisingly, there are already large numbers of cat-themed meme coins in the marketplace. What makes Kittycoin SOL stand out is the solid use case outlined in this article – around not only the deflationary coin supply but the way that the user community can also decide which charity will benefit from the Kittycoin project.
Kittycoin developers are keen to grow the project further and see this meme coin become a worthwhile and valuable medium of exchange which exists to benefit users and charities for years to come – rather than a celebrity-inspired gimmick with the usual 15 seconds of fame.