"So the KCS payout will continue to increase, but the major part of the extra profit will go the Kucoin itself."
I see it as good news, the whole announcement, and explanation.
The project is still very young, and in rapid expansion phase, so reinvesting profits looks logic move (sending most of the profit back to the company itself).
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Yes and no. Suppose that the would keep the feeat 50%, they still would make more profit if the volume grows. But like I wrote this was stated in the whitepaper so I did know in what I was investing!