The Future of Money - The Kinesis Monetary System
Introduction
With the advancement of technology, we have seen how ingenious ideas have helped to change our lives in a dramatic fashion like never before. And the internet has been one of the major drivers of this change, and in more recent times, cryptocurrency and the blockchain are bringing a new frontier of yet another wave of change. With the high proliferation of mobile devices and affordability of internet access, the blockchain is enabling business become part of the global economy. But sometimes, every great opportunity comes along with a difficult problem to solve alongside it; and in the case of cryptocurrency and the blockchain, that problem is the severe price volatility it has suffered since its inception.
But there appears to be a new solution, one that leverages on the same platform that powers the cryptocurrency and blockchain technology, as well as one of the oldest, safest and most sustainable forms of money, and together you have the Kinesis Monetary system. So to put in a simple and clear perspective, Kinesis is an asset-backed financial system, made scalable with the help of the blockchain technology.
About the Kinesis Project
Due to the high volatility of cryptocurrency, that makes it an unsustainable and sometimes unsuitable form of commercial exchange, the Kinesis project seeks to solve that problem. Through its universally acceptable asset-backed, decentralized financial system, which makes the platform a commercial exchange, one that is fast, secure, efficient and with a lot of incentives. A system that has successfully harmonised the oldest form of money (gold and silver) with the new decentralised technology of the blockchain in order to serve and promote the interests of its users.
Kinesis set out with the sole purpose of creating an evolutionary monetary system that surpasses any other system that currently exists. A system whereby active participation amplifies the value of the coin both as a medium of exchange and as a store of value for everyone. At the core of the mechanics of the Kinesis system, is to hasten the flow of assets, money, economic activities, and commerce in an honest, fair and rewarding process. Another major purpose of the Kinesis system is to convey an internationally fungible financial system, created to reward participants hereby creating a solution for the world’s need of a reliable, sound money.
The Kinesis Monetary System
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In Kinesis ambitious mission to change the world, a reward system has been set in place that will foster the movement of capital hereby encouraging commerce and economic activities. An important element to this strategy is the incentivize the quicker movement of money, this, in turn, attracts more investment due to its attractive risk/return ratio as well as the highly stimulated movement of funds. This is made possible by the outlet of funds via 1:1 direct allocated asset backing, then a multifacet layer is built of a yield system which promotes exchange and evenly shares the profit generated by the Kinesis Monetary System.
Here are the Kinesis 3 Basic elements:
Silver (KAG) and Gold (KAU): The platform’s basic currencies are backed 1:1 with an allotted physical silver and gold, which we know for its stability as well as its ability to store value which can be used for both private or commercial transactions, as well as investments. What this means is that the owner of the coin is entitled to the bullion used for the 1:1 backing of the silver of gold
Yield: The recursive profit that is generated from economic activities and not debt-based interest that is obtainable with fiat currency. This yield provides value through Net Present Value (NPV) calculations which can be used in institutional, commercial and retail investment
Cryptocurrency & Blockchain Technology: Which is an extra layer to strengthen the storage value of the system. This makes both assets liquid via digital means, thereby making them useful as a medium of exchange
The Kinesis system is structured in a way that it can accommodate other add-ons, as long as it can be stored, standardized traded as value. Work is already going on in adding alternative cryptocurrency, fiat banknotes, bullion as well as other assets that can easily be secured digitally or physically in an allotted Kinesis asset and banking management system.
Market Entry
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Kinesis has a strong real-world application in private transactions, as well as transactions on a commercial scale. This single fact will attract capital investments from markets that are experiencing low yields. And feasible marketing strategy is to disrupt the following markets in no particular order, and with the expected positive result, it will encourage investments.
Silver and Gold (Bullion) Markets
Fiat Currency market
Cryptocurrency Markets
Investment Asset Markets
Due to how Kinesis Monetary System is structured i.e having a foothold in all four of these markets via its Kinesis protocol, makes it very stable, secure hence participating in this system comes with very little risk, and it offers more return on investment than alternative markets. And the reason for this is because spending increases the value of the asset being exchanged, against hodling as in the case of cryptocurrency.
As we may know, Banks who serve as third parties in the traditional financial transaction, hold legal title to their client's assets, the asset they use for other purposes such as lending and trading, and the proceeds from these endeavours are theirs to keep and the client gets nothing in return. While Kinesis on the other hand, awards profits and other gains directly to owners of the asset on their network, at the end of the day, what [Kinesis](Kinesis represents is a efficient system that has minimal risk, maximal return on investment, which all translate to a high rate of user adoption that will go one to add more value to the system.
As a way of truly fostering a safe and sustainable monetary system, (Kinesis has a strategic partnership with Allocated Bullion Exchange, a world-leading exchange platform for precious metals who themselves recently secured a strategic relationship with Deutsche Borse Group, a body that is in close relationship with the European Commodity Clearing settlement services. These strategic partnerships play a key role in truly making the Kinesis Monetary System solid, free from price volatility that the cryptocurrency market has been plagued with since its inception.
Progression
There are two main sequenced activities that validate the development and commencement of the Kinesis Monetary System, and they include:
- The Initial Token Offering (ITO)
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The Kinesis Velocity Token (KVT) which is an ERC 20 compatible utility token. The primary use of the KVT will be in order to raise the capital needed to support the global Kinesis Monetary System. A certain percentage of the transaction fees earned from the various operators of the business with the system will be given to holders of Kinesis Velocity Tokens (KVT).
The KVT pre-sale ITO is currently running, and the public sale is scheduled to kick-off on September 10, 2018, all through to 11th November.
- The Initial Coin Offering (ICO)
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There is a clear distinction between the KVT token offering and the gold and silver coin offering, which is that the Kinesis ICO is the sale of the cryptocurrency backed 1:1 by gold and silver bullion. Being the first product from the Kinesis Currency Suite, the KAG (silver-backed coin) and the KAU (Silver-backed coin) are of the Kinesis Blockchain Network. First off, the KAG (silver-backed coin) and the KAU (Silver-backed coin) are the channels that powers all the transactions across the Kinesis Monetary System; and the ICO of the Kinesis Currencies marks the creation of KAG and KAU by manufacturing and backing the produced coins with real precious metals.
The ICO of the Kinesis currencies is slated to start on 12th November 2018.
Problems Kinesis is Solving
Due to the price volatility of the cryptocurrency market, which makes it unsuitable for the storage of value and a reliable use as a form currency. Due to the uncertainty hovering over the cryptocurrency market, this restricts to be adopted on a massive level. However, the breakthrough cryptocurrency has made as an alternative currency has paved the way for Kinesis to innovate and improve the system
Kinesis hope to solve the long old problem that fiat currencies have faced over time, as well as the challenge of storage value
Develop a more improved system to generate yields, that is better than what is currently offered by the borrow/lend networks
Put a stop to centralized banking systems
Checkmate government’s bad habit of printing money and funding itself, creating deficits in the process
Discourage the HODLing culture, which is when people store their assets such as cryptocurrency, money with the hope to cash out when there is an increase in value
Remove the fraud factor associated with asset-back securities
Create a system where bullion assets can yield interests
Install an over-the-counter (OTC) alternative, that is digitally enabled for bullion exchange markets
Help small markets scale by listing their physical assets for exchange opportunities
Features of the Kinesis Monetary System
All the functions and elements needed for an effective and successful monetary system has been implemented deep into the Kinesis framework. These various units function as individual businesses within the group
Kinesis Currency Exchange (KCX) - This is a wholesale market where the manufacture and minting of the currency occurs with the help of Allocated Bullion Exchange (ABX)
Kinesis Blockchain Network (KBN) - This is the blockchain technology used in the development of the Kinesis suite of cryptocurrencies. This created Kinesis tokens can be saved, spent, sent or traded through the blockchain technology
Kinesis Blockchain Exchange (KBE) - This serves as digital currency exchange powered by the blockchain technology, a platform where Kinesis and other tokens can be traded.
Kinesis Financial Network (KFN) - This is a mobile banking system where you can make payments, savings, transfer funds and make remittance with the Kinesis currency
Kinesis Commercial Centre (KCC) - This is an online aggregator platform where goods and services can be seamlessly transacted with the use of Kinesis as a form of legal payment
Kinesis Currency Suite
The Tech team behind Kinesis developed an in-house blockchain network branched into Stellar blockchain network for Kinesis currency. This fork helps Kinesis to take advantage of the high speed of transaction, as well as top-notch security that this technology offers.
Kinesis has also been able to add more functionality that will allow for more value-added features, to be incorporated into the Kinesis Monetary System.
Currency Centre KCC: This will be used to digitally attach 1 fine gram of gold (KAU) contract to a digital token, with a minimum cast bar of 995. And for silver (KAG)10 grams of silver to one unit KAG. Both KAU and KAG will possess a serial number, as well as an identifying stamp tied to the refiner of the metals.
Wholesale contracts are available for larger domination of kilograms together with 1,000 troy ounces of silver. They too possess the serial number attached to the identifying stamp of the metal refiner.
Velocity-Based Yield System
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Kinesis has put in place a robust system that has been designed to attract and retain institutional as well as retail investors, this is achieved by leveraging its velocity of currency suite. In this system, users earn based on their interact with the system as well as the velocity (the rate that money changes hands) of the Kinesis currency. Here return on investments is derived purely from the economic output as opposed to banks debt-financing system. Debt-financing systems repeatedly devalue the currency it represents by inflating the prices of the services and goods the currency is used for.
In a bid to create a stable price of the KVT, the development team behind Kinesis have understudied Tether, a cryptocurrency backed by the USD. Tether which is most consistent cryptocurrency, with consistent velocity in the market; a feat they could achieve by providing a stable price that can be used cryptocurrency traders and users, in general, to liquidate other volatile tokens and hold a more stable token - Tether.
With this argument in mind, Kinesis is offering a better substitute to Tether. Tether only offers price stability for the cryptocurrency market, but Kinesis on the other hand offers a better or similar price stability, as well as an enormous liquidity that is supported by the bullion industry participants.
Velocity based Yields
Minter Yield
The Kinesis system reward individuals that create (mint) the currency in primary markets and in turn utilize it secondarily in the blockchain market.
This group called the minters receive a proportionate share of the transaction fees as earnings for all-time on the Kinesis tokens they create. They more Kinesis tokens are created, and transacted, the higher their yield
Holder Yield
This group earn based on their passive activities on the Kinesis network while holding the currency
Their returns on investments are purely passive, and it is created to compete with stock dividend yields, bank deposits, and property rental yields.
Affiliate Yield
- This group earn rewards based on referring new users to the currency suite
Depositors Yield
This reward is applicable on a user’s initial deposit into their Kinesis wallet
Depositors also receive a part of the transaction fees as a yield forever, on the Kinesis tokens bought and used
High velocity translates to high yields
Kinesis Use-Case
Case 1
Henry is a crypto day trader, he has a diverse portfolio of cryptocurrency assets some of which are doing well in producing returns, but unfortunately, there are some other tokens that have accrued some losses; and this is due to the fact that Henry only started trading cryptos recently. He later found out about Kinesis, and now he has learnt to use Kinesis to liquidate volatile crypto tokens because of its stability.
So now, Henry can easily cash out his profit by converting his tokens to Kinesis currencies, and he is sure the value of his coins worth depreciate in value. over time
Case 2
Rebecca is a fresh college graduate who just secured her first job, she is excited about this, but also concerned with the student loan she accrues while getting her education. She is also worried about saving early enough, so she will be secured when she finally retires. She knows little about investments, and she was already getting weighed down with the amount of learning and things she has to understand.
Then she finds out about Kinesis, now she doesn’t necessarily need to learn everything about investing, all she needs to know is that her funds are safe, and she earns both deposits, holder yields on her investment. She can also earn affiliate yield if she can successfully convince her friends, colleagues and family to join Kinesis Network.
Conclusion
Kinesis is simply the future of money, as it is a platform that is implementing all the successful means of transferring value legally throughout history; and at the end of this convergence of systems, you will be left with a robust financial hybrid system. One that is backed with the ancient precious metal backed financial system (bullion), together with fiat and the most recent technology based blockchain and cryptocurrency financial system. So, with this asset-backed, cryptographic financial system, comes with a lot of benefits that the alternative financial systems can't offer individually.
Kinesis promises to revolutionize how financial yields are earned, unlike the debt systems implemented by banks, which in the long run devalues the currency it represents due to the poor premise it was founded on. On Kinesis Monetary System, users of the platform earn by actively participating in the network, as well as earning a certain percentage of the transaction fees the system accrues - forever!
The Kinesis Monetary System enhances money as both a store of value and a medium of exchange and has been developed for the benefit of all. - Kinesis
There are several use cases to see how this system will change the way we transact business.
Annexes
My video presentation
Tokenomics
Roadmap
Team
Advisors
More Information and resources
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