Kin Foundation publishes the first transparency report during the legal battle with the SEC

Kin Foundation publishes the first transparency report during the legal battle with the SEC - kin 1024x538The Kin Foundation published a transparency report on May 21, which illustrates its structure and operations, in collaboration with Messari and its disclosure database.

What the report says

According to the report, the Kin Foundation plans its budget a year in advance, with funds earmarked for app developers, node incentives, user contributions, marketing and operations. Currently, 1,45 trillion kin tokens are circulating, out of 10 trillion created in all.

The foundation is currently managed by a two-member board of directors: Kik Interactive CEO Ted Livingston and William Mougayar, author of "The Business Blockchain" and one of the founders of the annual Token Summit conference.

Kik created Kin in 2017. "The board is appointed annually by members," says the report. There is also a Kin representative who acts as a "channel between the Kin Foundation and the community of developers and owners."

Matt Hannam, who took office last month, is currently the only representative, but the foundation plans to add two or three more in the coming year. Kin also has an "informal" community of 10 delegates who oversee kin rewards and internal discussions.

Foundation tokens are assigned at a rate of 20% per year, but the first year has been partial (kins were created in mid-2017). The report states that over 28 million users have acquired kin in the past three years, using more than 50 different active apps.

Active apps are defined as those with at least one user who has used kin in the past 30 days. According to the report, nearly 300 million kin per day has been spent since the beginning of the year.

Legal battle

The report comes amid Kik's ongoing legal battle with the U.S. Securities and Exchange Commission (SEC), which sued the company last year on charges that the sale of kin tokens was based on securities. not registered.

Earlier this month, both sides presented their response memorandums as part of the proposals for summary judgment requested by each party. Kik argues that "the SEC cannot cope with its burden to demonstrate that Kin buyers were primarily driven to expect profits from others' management efforts," indicating the terms of use that kin buyers agreed as a test.

For its part, the SEC claims that the marketing of quotation of Kik's token kin would have led buyers to expect a profit, highlighting various online posts and a roadshow to which the company was subjected.

In a statement, Kik's general counsel Eileen Lyon said: "Our opinion on the SEC's opposition is that it relies heavily on the recent Telegram case, which we believe is poorly motivated and wrongly decided", referring to the recent preliminary injunction against Telegram. Kik also believed that the SEC's "integration" arguments "were conclusive and circular," he said.