Kinesis : Re-inventing New Ways of Using Crypto As a Stable Means of Exchange
Bitcoin and blockchain technology are definitely the most important invention in the history of the world since the internet. The potentials are endless but institutional investors and Big organizations are reluctant in adopting this technology simply because of its high volatility. Whereas gold which is another form of storing value is a great way to preserve wealth although hard to move around.
This means that a gold-backed digital currency would provide the users with all the full benefits of the blockchain at a lower risks. To prove my point further, I will like to introduce you to a first-of-its-kind, asset-backed digital currency system; Kinesis!
watch their introductory video
Kinesis is a decentralised monetary system that backs-up your investment with physical assets (in particular gold and silver) while offering users the oppurtunity to combine the flexibility of the blockchain usage with the stability offered by a physical asset.
In other words, Kinesis mission is to deliver an internationally fungible monetary system designed to give back to those who participate, and thus create a solution for the global need of sound,reliable money.
source
I want to use my personal experience as an example of what kinesis monetary system seeks to tackle. My exploit into the cryptocurrency world has got me to start thinking in one's and two's and this what I mean. Everytime the market is down, just as the value of steem and other cryptos are. I tend to think the best option might be to hold until the price increase before I sell which is like that for most other investors which is indirectly influencing the liquidity of such token on the market thereby creating a situation where a buyer is forced to buy at a price which meets my evaluation and not the present worth of such asset and the situation is reversed when the price rises again. This ideology sums up the reason why crypto is highly volatile and therefore considered not viable adoption as a means of exchange for physical goods because everybody wants to hold when price is down and sell when price is high!
This creates a scenario of my valuation vs your evaluation everytime a trade needs to be initiated between two parties which hopelessly lead to a dead-end for people looking to complete a deal. Now lets look at the Kinesis monetary system in full.
watch a short clip of KMS
In kinesis monetary system, volatile asset like a crypto is backed in a 1:1 with gold or silver ensuring that the crypto asset doesn't depreciate fast in the first place against a more stable physical asset.
A yield system is also designed to ensure that different transaction velocity is encouraged for different trade actions such as holding, selling, buying. Actions which are triggered largely by favourable market conditions for its users creating an imbalance for value exchange.
The Kinesis economy is based on this 3 major proponents
- Gold
- Silver
- The kinesis digital currency represented as KAU for a silver-backed asset and KAG for a gold-backed asset.
The Minter's Reward
Inorder to be eligible for this reward, the minter must deposits fiat currency or physical bullion holdings inorder to mint an equivalent proportion of the kinesis digital currencies in either KAG or KAU which is emitted into his/her kinesis hard or E-wallet.
The E-wallet holding your digitally allocated assets is connected to their bespoke folk of stellar network inorder to reward the minter a proportional 5% share of transactional fees on kinesis currencies they create activated by sending, spending and selling.
Note: The ownership of the physical bullion is allocated to the physical owner within their vault
The Holder's Reward
In a similar vein, inorder to promote a stable economy conducive for trading this digital assets, Kinesis will reward holders of the kinesis currency with a 15% share of the transactional fees. Holders will need to hold kinesis currency in their e-wallet to be eligible for this reward.
Note: No interest is accrued with any Kinesis e-currencies yield. Meaning that your yield benefits will not be added to your digital currency holdings but will be stored in a seperate column within your e-wallet which can be spent, sold or sent just like your normal digital currency.
First of all, the kinesis idea is borne out of the need to minimize the risk/loss ratio for investors, fund managers and asset owners while maximizing their yields in the various form of asset class they would love to invest in. Kinesis looks to streamline a market economy that could be adopted for trading in digital currencies due to a more stable economy which also guarantees a higher yield against these conventional markets.
- Cryptocurrency Markets
- Gold and Silver Markets
- Fiat Currency Markets
- Investment Asset Markets
This means that
Investors can expect to have a yield on their investment without the hassle of the volatile crypto currency market.
Asset managers can get incentivize for minting their gold or silver assets into an equivalent digital currency which can be easily spent or transfered unlike the precious metal stored in one of their 7 partner vaults around the world. These vaults store you precious metal for you completely free of charge.
Assets can be exchanged at a fair price for all concerned increasing adoption for institutional investors who will love to use the blockchain technology for its use.
Security
As opposed to blockchain technology, security is one of the major problem of asset- backed currencies. In order to ensure that situation of fraud or theft doesnt arise when using digital assets or precious metal as a means of solution; Kinesis utilizes the multi-layered third party verification system of ABX(Allocated Bullion Exchange: Kinesis strategic partner) quality assurance framework.Stable medium of exchange
Kinesis asset-backed system will ensure that the digital currency gain steadily against the assets because it is freely tradable thereby ensuring the liquidity of this currency with an increasing value vested into the system unlike a traditional crypto asset which value is determined only through buy and sell actions. The Kinesis monetary system thrives on a more compact schedule of yield for different actions which ensure that there is a balance between the two primary buy/sell options for commercial participation.
Store of Value
Kinesis through their partner schedule with 7 vault locations around the world can serve as a reliable means of storing value in terms of physical asset being freely stored in any of these vaults.Speed and Efficiency
A key component of the KCS (Kinesis Currency Suite) is the Kinesis E-wallet which thrives on the stellar network due to its high speed of transaction. Users can easily complete different actions via their digital wallets in a fast, inexpensive way.
Incentive-derivative
Kinesis run on a velocity-based incentive system meaning that users get incentivized based on the number of transactions carried out in the digital currencies through their hard or E-wallet account. Such actions include hold, buy, sell, refer and send and deposits.
High Market Velocity
The Kinesis solution offers the much needed incentive-based system to holders of KVT(Kinesis Velocity Token). This ensures that KVT holders gets a share of transactional fees generated by use of Kinesis currencies.Thereby driving users to transact more in Kinesis digital currencies of KAU and KAG.
Kinesis Currency Exchange (KCX)
The wholesale market where the currency is created and minted
Kinesis Blockchain Network (KBN)
The blockchain technology upon which the kinesis suite of cryptocurrencies is built.
- Kinesis Blockchain Exchange(KBE)
A digital currency exchange where Kinesis and other digital currencies can be traded
- Kinesis Financial Network (KFN)
KFN serves as a mobile banking system where kinesis currencies can be used for savings, payments, remittances and money movement.
- Kinesis commercial Center (KCC)
An online aggregator platform of goods and service providers offering a solution for merchants to use kinesis for payments.
Kinesis Currency Suite
Gold currency (KAU) :
1 fine gram gold contract and token,
consisting of gold cast bars of.
minimum fineness of 995
Silver currency (KAG)
10 gram silver contract and token,
consisting of silver cast bars of a.
minimum fineness of 999
KVT Initial Token Offering(ITO)
Kinesis Velocity Token, KVT is an erc20 compatible token. KVTs will serve as the fund raising vehicle to fund the global Kinesis Monetary System. There are benefits attached for its holders
ITO is currently in presale, with public sale to launch on 10 September 2018 and end on 11 November, 2018.
Initial Coin Offering (ICO)
The first kinesis cryptocurrencies : KAU (gold-backed coin) and KAG (silver-backed coin) are based on the bespoke Kinesis Blockchain Network (A fork of the stellar network). KAU and KAG are the medium by which all transactions will be conducted on the Kinesis Monetary System. The Kinesis currency ICO will commence on 12 November 2018.
Executive team
Operations team
Development team
Advisors
Check out some useful links below
Link to contest
Link to twitter post
Kinesis2018
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