A new Gold Standard is arising and it will incentivize the use of gold as money. Be a part of the change and win $10,000 in gold and silver.
Participate and win STEEM; details at end of article.
The problem: People tend to hold good money.
Money is a means of transferring value. Money in its modern state, fiat, is one of the worst stores of value and thus people are inclined to spend it. The transient nature of fiat’s value pushes people to spend it and this provides fiat with the velocity needed to sustain its prominence.
Velocity of money is the rate at which money moves from one holder to the next.
Fiat, which possesses constant depreciation of value, is easily spent by people as they do not fear that it will have a greater value tomorrow. This turns fiat into something that is easily spendable: a means to transfer value. If something that appreciates in value is introduced as a money, it will not be spent and would innately become a pure store of value rather than a transfer of value.
People’s innate desire to hold appreciating assets rather than spend them renders such assets as poor means of value transfer.
A new fintech startup, Kinesis, is designing a new monetary system which is the evolution of the Gold Standard. Kinesis has come up with a means to ensure that gold, despite being a strong store of value which may be worth more tomorrow, is spent.
The development resolves the dilemma of people’s innate desire to hold good money and thus reestablishes gold’s utility as a currency.
Incentivizing Velocity of Good Money
Gold is one of history’s proven and strongest stores of value. However, its weight and lack of divisibility made it an inconvenient currency. Moreover, in this digital age, a purely physical currency is extremely limited in utility.
Thus, a new protocol, built atop a Stellar fork, has been created to tokenize both gold and silver.
Kinesis, leverages blockchain technology to allow anyone to use fiat or cryptocurrencies to buy physical gold directly on the open market, store it within a trusted network of depositary vaults, and then mint the gold-backed coins. Rather than a central entity controlling the creation of money, Kinesis allows the masses to mint money as long as they possess the gold to back it.
However, people have become accustomed to purchasing gold and holding on to it as a store of value. Were Kinesis to provide the world with a gold-backed currency, people would just hold on to it. Thus, for tokenized gold to be genuinely utilized as a currency, there’s a need to incentivize its use.
Kinesis Velocity Token
There’s an incentive to hold gold as people presume it will appreciate. Thus, Kinesis has created the Kinesis Velocity Token (KVT), which provides people an incentive to both tokenize physical gold and then spend it.
As it stands, Visa alone delivers $2 trillion in transactions every year. Cashless payments are growing and, while Crypto is a disruptive solution to the market, payment cards are a convenience people are using more frequently. Thus, Kinesis has developed a payment channel for its gold- and silver-backed cryptocurrencies, thereby allowing them to be compatible for spending via payment cards. Therefore, Kinesis takes advantage of the two leading payment technologies: cryptocurrencies and payment cards.
The first of its kind, the Kinesis payment card is a means to transact, across the world, with tokenized gold.
As the precious-metal backed coins created through the Kinesis protocol can be used at any point-of-sale system, adoption will be greatly eased. The transactions on the payment cards will face a fee, just as payment cards do at present. This fee will be utilized to drive project growth.
The fees incurred by the Kinesis protocol will be used to incentivize the Kinesis ecosystem and user base growth.
All holders of KVTs will be given up to 20% of the fee. Thus, KVTs are a token that ensures the success of the Kinesis Protocol is rewarding to the community on a life-long basis. There’s no limit to the net rewards that can be incurred; there’s no expiration of the rewards; there’s no date at which the rewards cease.
Setting Things in Motion
Enabling easy spending of tokenized gold and silver is not enough. There must be an active community handling the tokenization of the process or the system risks becoming centralized.
In order to encourage a p2p ecosystem for the creation of gold-backed money, there are incentives for creators of the metal-backed cryptocurrencies, those who initiate the money’s velocity, and those who attract users to the ecosystem.
Kinesis incentivizes the minting of tokenized gold and silver. Kinesis will not control the flow of metal-backed currencies; people will. If the market feels the demand for tokenized gold and/or silver is growing, they’ll be able to buy gold and silver through crypto or fiat, and then tokenize it. This process will be called minting; minters will be given a 5% reward from the collected fees.
Community members who buy gold- and silver-backed money and then initiate its velocity by being the first ones to make a transaction with them, by depositing them into a personal wallet, will be entitled to a depositor’s yield. This yield will be earned on the lifetime of the coins they set into motion; the reward will be 5% of the network fees.
The most crucial role in the growth of the Kinesis ecosystem will be the attraction of merchants who accept the metal-backed currency and people who use the metal-backed currency. Thus, those who grow the ecosystem will be rewarded with 7.5% of the fees generated by the network users they add.
A Gold Standard by the People
The traditional Gold Standard, while backed by gold, had its caveats. The gold-based money was created by the government. Thus, the masses had little to no control in the creation and flow of money.
Kinesis is delivering the evolution of the gold standard and it involves more than just the tokenization of precious metals.
Rather, Kinesis is not only giving the power of creating a gold-backed currency to the masses, but also rewarding them to do so. Moreover, rather than relying on banks to set money into motion, Kinesis encourages people to act as depositors and set gold-backed money into float.
The modern Gold Standard will be backed by gold, on par with the needs of the digital age through tokenization, and created and distributed by the masses.
Join the Kinesis community and win gold and silver!
Simply answer the Kinesis Gold Hunt quiz and you’ll stand a chance to win thousands of dollars in precious gold and silver.
First Prize: 100 gram PURE 9999 Gold Bar (~$4,300)
Second Prize: 5 kilograms of PURE 999 Silver BAR (~3,200)
Third Prize: 1 ounce Gold Bar (~$1,300)
3 Additional Winners: 10 grams of gold bullion each (~$430)
You must resteem this.
Answer this quiz. When you are done, you will be taken to a "thank you for participating" message.
Post a screenshot of the "thank you" message, and I'll deliver 1 STEEM to you. 30 people. Once per person.
Yes, you're getting 1 Free STEEM to participate in a free $10,000 give-away.
Show off YOUR Talents: Win $430
Kinesis is also hosting a competition for video content creators.
Create an interesting video about gold as a currency and win 10 grams of gold worth $430.
Here’s some inspiration for you:
🌐 Website: http://bit.ly/SteemKinesis2
💡 Whitepaper: https://kinesis.money/documents/translations/kinesis-whitepaper-summary-en.pdf
👨 ANN Thread: https://bitcointalk.org/index.php?topic=4502836.0
💻 Telegram: https://t.me/kinesismoney
PM Me on Telegram https://t.me/HatuSSS