Kinetiq Launched Public Testnet for Elysium Network
DeFi developers can now test high-speed trading applications on the new layer-2 network built on Arbitrum Orbit.
Updated on Sept. 22, 2026 in Economic Indicators
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Kinetiq has opened the public testnet for its Elysium network, a layer-2 solution designed to manage decentralized finance traffic without congestion. The network utilizes chain ID 99801 and relies on the HYPE token for gas, with bridging available at a 1:1 ratio.
Why it matters
The Elysium network aims to optimize trading throughput by targeting block times between 100 and 200 milliseconds and an execution capacity of 300 Mgas/s. These performance benchmarks are intended to address the persistent issue of network congestion that currently limits decentralized trading capacity.
Sequencer fees are structured with 50% allocated to KNTQ buybacks and burns, while network builders and the Kinetiq treasury each receive 25%. This model follows a 30% price rally in KNTQ during August.
The players
Kinetiq
A developer of layer-2 blockchain solutions that maintains a leading share of the liquid staking market on Hyperliquid.
Kraken
A global cryptocurrency exchange platform that provides listing services for digital assets including KNTQ.
The details
Developers can access the network via an RPC endpoint, block explorer, bridge, and faucet using chain ID 99801. The infrastructure leverages the Arbitrum Orbit framework to facilitate high-speed execution. By burning half of all sequencer fees, Kinetiq intends to establish a deflationary mechanism for its KNTQ token while incentivizing ecosystem growth through builder rewards.
Timeline
Kinetiq first revealed the Elysium network in late August 2026.
The public testnet for Elysium launched on September 22, 2026.
Market Landscape
Elysium represents the latest integration of the Arbitrum Orbit framework to solve scalability bottlenecks in decentralized finance. This launch follows a broader industry trend toward application-specific layer-2 networks that prioritize low latency over general-purpose chain utility.
Developers and operators in the DeFi space should monitor the testnet's performance against its 300 Mgas/s target to determine if it meets their scaling needs. Those holding KNTQ should track the sequencer fee redistribution mechanism to understand its impact on token supply.
The takeaway
The Elysium network provides an alternative infrastructure for firms seeking higher transaction speeds than those currently available on major L1 protocols. Operators should watch for the transition from testnet to mainnet to evaluate the reliability of the sequencer fee allocation model.
Further reading
For more information on current market trends, visit the Economic Indicators section.
Source note: This article includes information reported by Crypto Briefing.
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