Kraken-Backed Ink Network to Launch INK Token with Initial Airdrop

Key Developments in the Ink Ecosystem

The Ink Foundation is set to introduce the $INK token, designed to enhance decentralized finance (DeFi) operations on its Kraken-supported Ink Network. This new token will have a capped total supply of 1 billion and will function exclusively for various DeFi applications without influencing governance decisions. The inaugural application of INK will be as part of a liquidity protocol powered by Aave, featuring a planned airdrop for early participants.

Introduction of the INK Token

In June 2025, the Ink Foundation announced its initiative to roll out a dedicated token for the Ink Ethereum Layer 2 network. With a focus on strengthening the network’s DeFi capabilities, INK is expected to initially fuel a liquidity protocol supported by Aave, a prominent player in the decentralized lending space.

Deployed in December 2024, the Ink Network operates on the OP Stack as a contributor to the Optimism Superchain. While the project was initiated by Kraken, it is now governed by the Ink Foundation, an entity dedicated to fostering innovation and growth within the ecosystem.

A Token for DeFi, Not Governance

The INK token will have a definitive supply of 1 billion tokens, which will remain unchanged and untouched by any governance mechanisms. This critical distinction means that INK will not play a role in governing the underlying Layer 2 network, which is managed by the Optimism Collective, maintaining its integration within the wider Superchain framework.

The Ink Foundation’s Board of Directors expressed their vision in a statement, stating:

"From lending to trading and beyond, the Ink Foundation anticipates a vibrant future where INK sustains a flourishing DeFi ecosystem guided by its user base."

Liquidity Protocol and Airdrop Plans

The primary utilization of the INK token will serve as a motivational and governance tool within a new liquidity mechanism leveraging Aave’s infrastructure. The Foundation aims to encourage both developer and user engagement by establishing a vital component for DeFi centering around concentrated liquidity.

To incentivize adoption, the Ink Foundation plans to execute an airdrop of INK tokens aimed at early protocol adopters. While specifics are still being finalized, the Foundation assures that measures will be in place to prevent sybil attacks and ensure equitable distribution, with the rollout being managed by a subsidiary of the Foundation.

Early Days for the Ink Network

Despite a strong launch, evidenced by over 1 million transactions within the first 24 hours of going live, the Ink Network still lacks substantial liquidity, with its total value locked (TVL) approximately at $8.2 million as of June 19, 2025. This figure significantly lags behind other Layer 2 networks such as Coinbase’s Base, which boasts a TVL of $3.8 billion, and Mantle at $212 million, according to DeFi Llama data.

Although further details regarding the tokenomics of INK and its official launch timeline are yet to be unveiled, this announcement marks a decisive push by the Ink Foundation to stimulate DeFi development on the network and engage users through token incentives.