Since the launching of bitcoin in 2009 and with major progress made thus far in blockchain development, there is much excitement in the air. Several mainstream systems have adopted blockchain solutions to improve services delivery in terms of speed and efficiency. Currently, there is increase in the number of blockchain projects, the volume of transactions and market capitalization of blockchain instruments. The steadily rising number of people who invest in cryptocurrencies positions blockchain technology as the next big digital revolution. However, some structural challenges have prevented the mass adoption of cryptocurrencies as a investment medium capable of replacing traditional financial institutions. Those challenges must be addressed quickly to make further progress in blockchain development.

The Problem

While there have been a spectacular rise in the value and use of cryptocurrencies, two major challenges have prevented its continued breakthrough:

• First, the value of cryptocurrencies is unstable.
• Second, the processing of cryptocurrency transactions is slow and attracts processing fees.

One important characteristic of any currency is that it must be a stable store of value. This feature can attract investors who will be able to reliably predict the return of invested capital and how much profit they will make from their investment. Currently, cryptocurrencies are so unstable in nature. Thus, investors do not view them as real currencies because it is difficult to calculate future return on investments. They thus avoid cryptocurrencies for fear of loosing their money.

Again, any real currency must be capable of facilitating transactions swiftly. Currently, the blockchain technology is slow in processing transactions. Worse yet, there is a limit on the number of transactions that can be made in unit time. The main security features of blockchain technology enforces the attendant time lapse in executing transactions. Thus to ensure that transactions are safe, speed was sacrificed. Lack of speed in executing transactions made investors believe that cryptocurrencies are not efficient medium of exchange, thus keeping many people from investing in them.

So the main question is: How can blockchain technologies overcome volatility and facilitate swift processing of transactions? How can people be rewarded when they make transactions instead of charging them like today's banking system? These and more benefits are delivered by Kinesis money.

The Solution - Kinesis money

Kinesis money is a blockchain-based ecosystem that will transform the use, design and transacting of digital currencies (money). It is a superior monetary system backed by gold and silver to create some value stability badly lacking in cryptocurrencies . Kinesis money utilizes a special, yield-bearing mechanism to reward people for participating in commercial activity on the platform. This provides an incentive to use Kinesis money as a real currency, while proportionately distributing the wealth generated from trading back to the users.

Backbone of Kinesis money System

The Kinesis money system has three maindesign elements that powers its vision and mission. Each plays a vital role in stimulating investment, rewarding commercial participation and creating a stable, secure and fair digital money ecosystem. They are as follows:

1. Gold & Silver: Each Kinesis money token purchased is backed by Gold and Silver allocated in the ratio 1:1. Gold and Silver are two of the oldest money units whose values are stable and predictably definable. Token holders have full ownership of the allocated bullion and this provides the much needed stability and store of value badly lacking in cryptocurrencies as a whole.

2. Yield: Each allocated bullion is attached to a unique variety of yield system. This unique yield system promotes and rewards commerciall activity based on level of user participation on the platform. This feature encourages the use of Kinesis money as a medium of exchange and creates economic value from trading, not from debt-based interest like fiat currency.

3. Blockchain Technology: Kinesis money is powered by blockchain technology with its discentralized nature and top security features. This makes Kinesis money appealing to a global audience of investors and users. The yield system and the bullion feature all complete a unique Kinesis money system where everyone wins in one way or the other through participation.

How Kinesis money overcomes major challenges in financial Markets

From the earliest times till now, each financial system has its own peculiar challenges which have be addressed by Kinesis money. We take a look at some of them:

1. Price volatility in cryptocurrency markets: While cryptocurrency markets have seen major increase in several aspects such as trading volume, price volatility has been one of its biggest challenges. The price of cryptocurrencies is highly unstable and considered major risk by investors. This price flunctuation makes it difficult to calculate potential revenue from investment. For example, the weekly price flunctuation of bitcoin reached nearly 60% in 2017. Hence, investors see cryptocurrencies as neither suitable as a medium of exchange nor a proper store of value.

The Kinesis money Solution: Kinesis money token is solidly backed by Gold and Silver allocated in the ratio 1:1. Theses physical assets are boast the most stable way to store and return value. By this, Kinesis money creates the kind of value strength for its token that can withstand flunctuations in the financial market. Making it both ideal for use as a currency and as reserve.

2. Instability of fiat currency: just like cryptocurrencies, fiat currency is subject to frequent devaluation by central authorities which results in inflation. Devaluation is a poor method of sustaining economic growth without thinking about its effect on investment. For example, the interests paid for money deposited in the banks is far lower when compared with the rate of inflation. Investors must also service their deposits and pay others fees like insurance for bank savings. These things result in loose on the part of investors.

The Kinesis money Solution: In addition to creating a stable currency backed with Gold and Silver, Kinesis money is futher enhanced with various yield systems. The yield systems incentivizes commercial activity and rewards investors for trading instead of the poor interest rates paid for deposits. The stability of Kinesis money backed with Gold and Silver creates a solid basis for investment - predictable investment.

3. Precious Metals Markets Issues: Many people who trade precious metal like gold and silver prefer to withold them and instead spend fiat currency. In the long run, these assets provide no extra value apart from the one they posses. There is no yield attached to them. Hence, investors loose out on the potential to generate extra revenue from their asset-backed investment. Also, the holding of such assets is quite expensive and risky with frequent cases of theft and fraudulent business dealings.

The Kinesis money Solution: Again, the unique yield system of Kinesis money helps investors create extra value from their investments. Each investor receives extra wealth generated from participating in trading on the platform. Also, the Gold and Silver solid backing of Kinesis money provides a far more superior framework for investment than asset-backed systems.

Kinesis money Architecture

Various integrated systems and components make up the entire Kinesis money architecture. Each feature handles a critical part of the project and all work together to create a streamlined framework capable of extending the capabilities of current financial solutions. We take a look at each of them:

1. Kinesis Currency Exchange (KCX): This is the unit responsible for creating and minting Kinesis money. The exchange utilizes Allocated Bullion Exchange (ABX) whose access to global trading organizations ensures a very wide market for the minted currency.

2. Kinesis Blockchain Network (KBN): This is the blockchain framework on which Kinesis money is built. It facilitates all the transactions and coin activity of Kinesis money.

3. Kinesis Blockchain Exchange (KBE): Kinesis money operates an internal digital currency exchange. This feature facilitates all coin trading activity on the platform including exchanging other coins.

4. Kinesis Financial Network (KFN): This components serves as a mobile banking platform where normal banking activities can be carried out. It includes a system to integrate Kinesis as a payment gateway by issuing Master and Debit cards. It includes ecommerce capabilities through Api integration for merchants to accept payments on their website. Other added features includes companions card for family members, private labelling feature and other functionality.

5. Kinesis Commercial Centre (KCC): This center enables merchants accept Kinesis Tokens as a means of payment without having to set up merchant accounts with any other payment gateways.

The Kinesis Strategic Partnership with ABX

Kinesis money is unique in its program to back the Kinesis token with allocated Gold and Silver in the ratio 1:1. This provides much needed stability to the Kinesis token and distinguishes it from other cryptocurrency. To ensure full security and availability of these precious metals, Kinesis Money formed a strategic partnership with Allocated Bullion Exchange (ABX) - world renowned marketplace for allocated physical precious metals. ABX will bring on board lots of expertise, security and industry standard experience on Bullion trading and management.

Consider why ABX has been selected for this strategic partnership :

• Global Service: ABX operates global wholesale bullion market with 7 international trading centers. The market is available nearly round the clock - 23 hours a day 5 days a week. So kinesis users have full access to their allocated gold or silver almost anytime.

• Allocated Metals: This simply means that Gold and Silver sourced from ABX confers the full title of ownership to the holder. This is unlike gold sourced from banks where the holder is given limited ownership. Kinesis token holders are simply owners of the allocated gold or silver.

• Efficient: ABX runs an integrated marketplace where the traders have all the tools needed on the platform. So Kinesis token holders have a complete toolset for the management of their precious metals.

• Secure: ABX is in partnership with world renowned vaulting, auditing, inspection and logistics companies. These companies provide optimal services for the bullion market with security as a priority. Kinesis token holders are rest-assured of the security of the allocated metals.

Services that ABX will bring to Kinesis

Among other things, ABX will provide the following services to Kinesis token holders:

• ABX will provide the allocated gold and silver for purchased Kinesis tokens.
• They will provide third party auditing to ensure that allocated metals are safe and up to the highest industry standards.
• ABX will through its partners provide logistics like storage and monitoring of the allocated metals.
• ABX will also give token holders the complete toolset needed to manage their precious metals

It is very obvious that this partnership is an important element for the success of Kinesis money. The provision, management and other logistics of allocated gold and silver from ABX will ensure the smooth operation of other parts of the Kinesis strategy.

The Kinesis Currency Suite

Scalability has been a big challenge of cryptocurrencies, so to take care of that, Kinesis money team developed a unique blockchain for the currency suite. This blockchain inherits the swift transaction speeds and optimal security of the stella blockchain from which it was forked off. Kinesis money then extended the functionality of this derived blockchain to create a distinct blockchain platform to enhance performance.

The currency suite is used to digitally tie one fine gram of gold per token (gold of 995 fineness) for KAU and 10 grams of silver to one unit of KAG. Each will have a serial number attached to an identifying stamp of a refiner of the metals.

There are wholesale contracts for denominations of kilograms of fine gold as well as 1,000 troy ounces of silver. All have the same serial number and refiner assurances through ABX and the Kinesis Currency Exchanges (KCX).

The Velocity-based Yield System

Kinesis money is unique in many aspect. It does not only provide a stable digital currency backed by gold and silver, it also rewards users for commercial participation in the economy. The size of rewards (yield) is determined by the rate of money movement in the system and extent of individual participation. This extra value is derived from pure economic activity of using Kinesis money for trading.

In the cryptocurrency sphere, the Kinesis currency suite will provide a stabilizing force while its use will be highly incentivized, stimulating velocity. Other volatile cryptocurrency holders can find price stability by converting their volatile cryptocurrencies into Kinesis. As a result, Kinesis currency suite will be particularly useful for businesses and merchants.

This velocity-based yield system has the following facets:

1. Minter Yield: Minting involves converting bullion holdings and fiat currency in the Kinesis Primary Market. into KAU and KAG coins in the secondary market. Each Minter's reward (yield) is proportional to the amount of coins they mint, are transacted, and the rate at which money change hands on the system. (Check the chart below)

2. Depositors Yield: When users deposit directly into the kinesis wallet for the first time, the are rewarded with depositors yield. They also receive depositors yield as they transact with Kinesis money from their wallet. The amount of yield paid is proportional to the velocity of the initial deposit.

3. Holder Yield: Holder yield is a financial reward paid to users on the platform that choose not to trade actively on the platform. This incentivizes users to invest on the platform instead of fiat deposits with banks, stock market investment, or other forms of asset holding. This chat below illustrates the process:

4. Recruiter Yield: Members are rewarded for referring new users to the Kinesis money system. This type of reward is called recruiter or affiliate yield.

Below is a comprehensive analysis of the yields for each category of users and activity:

The Token

The Kinesis Velocity Token is an ERC20 utility token that receives a portion of the transaction fees from the Kinesis Monetary System. KVT holders receive a proportional 20% share of all transaction fees associated with all Kinesis currencies and a further incentive of 20% of all commissions from the Kinesis Commercial Centre (KCC).

The Launch Schedule

Use Case

John is a seasoned investor in fiat currency. He wants to look into crytocurencies, but is very wary of cryptocurrenciess price flunctuations and inability to predict potential ROI. He decided to investigate the least likely cryptocurrency to invest in. While doing research online, he came across a Kinesis money website that explains the inherent risks of cryptocurrency investment and why Kinesis money offers a superior parallel market. He signed up, bought some coins and is happy that his investment is steadily growing and quite stable unlike what he believed cryptocurrencies should look like.

Conclusion

Kinesis money offers unparalleled advantage and far distinguishes itself from conventional cryptocurrency inventment, fiat system and precious metals trading. It gives investors the coin stability badly lacking in other cryptocurrencies. It boasts a unique yield system that rewards active participation. This revolution will encourage large-scale adoption of cryptocurrencies as more people reap rewards from their investment.

The Roadmap

The Executive team

The Operations Team

The Development Team

The Advisory team

Kinesis in the Media

Kinesis has been featured in mainstream news reports. Click on each icon to read what the media have reported about this project:

Kinesis rating

We were analyzed and evaluted by at least five crypto analysis sites and the result was not bad at all. See how we performed in the rating by clicking each icon:

Find more Information

Kinesis.Money Website
Kinesis.Money WhitePaper
Kinesis.Money OnePager
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Kinesis.Money Linkedin
Kinesis.Money Github
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Kinesis.Money Twitter

Who Organized this Contest?

This contest was organized by @originalworks. You can participate in the contest by clicking here.

Image credits

Unless otherwise indicated, all images in this article were taken from Kinesis Money Website and whitepaper.

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