KINESIS - A DECENTRALIZED ASSET-BACKED MONETARY SYSTEM
INTRODUCTION
The highly volatile nature of cryptocurrencies, the highe risk and inflationary nature of fiat currencies and the stored nature of standardized currencies such as gold and silver has created an I'm balance in the current global monetary system that is adversely affect on commerce and economic activities. Merchants hardly accept cryptocurrencies as means of payment because of their highly volatile nature while fiat currencies are subject to high risks and loss of value as a result of inflation. Gold and silver that are quite stable are hardly used for commerce and economic activities because of the holders anticipation of future increase in value in relation to other currencies. What if there is a monetary system in place that the backs the highly volatile currency and the high risk currencies with gold and silver in such a way that they have the same value as gold and silver, don't you think that commerce and economic activities all over the globe will greatly improve? This now brings us to the KINESIS monetary system.
THE KINESIS MONETARY SYSTEM
The KINESIS monetary system is a decentralized monetary system that seeks to enhance money both as a store of value and as a medium of exchange by backing high risk currencies (Fiats) and the highly volatile cryptocurrencies with standardized currencies such as gold and silver in a 1:1 ratio. This implies that the currencies will have same value and stability as gold and silver. This system will strengthen commerce and economic activities and also make gold and silver to be key participants in the daily economic activities across the globe.
VISION OF KINESIS
KINESIS aim to create a system that enhances money both as a store of value and a medium of exchange and encourages participation in the global economy through a rewarding system. KINESIS will strengthen free movement of money, assets, commerce and economic activity that will be rewarding to everyone equally that participates in the system.
MISSION OF KINESIS
KINESIS envisage a world where there won't be huge discrepancies between various currencies as experienced in the current monetary system. KINESIS monetary system creates a system where its currency can be exhanged for something of equal value and benefit those that participates in the system. This will solve the global need for a sound and reliable money.
HOW THE KINESIS MONETARY SYSTEM WORKS
The kinesis monetary system rewards participants in the system and enhances economic activities through the use of its 1:1 asset-backed currencies. Users invest fiat currencies into the system in exchange for kinesis currencies that can be used for transactions, commerce and economic activities within the system. Users earn rewards by their engagement in economic activities. The more the engagement of the users in economic activities within the system, the more the participants in the system will earn. The system doesn't favour or support the system of hoarding valuable currencies at the detriment of other currencies. It encourages economic growth and currency appreciation through participation. The three primary of the system are explained below.
Gold and silver:
These assets of stored value are used to provide stability and security to the kinesis system by providing 1:1 asset backing to the kinesis currencies. Kinesis gold coin (KAU) and kinesis silver coin (KAG) are the two currencies backed by this system. Owners of KAU and KAG has same value as the asset used in backing them, thus engaging these currencies in commerce and economic activities is equivalent to engaging the assets used in backing them in daily economic activities.Yield :
This is the system put in place to reward participants in the system. Various yields exist for the different participants in the system. The yield is put in place to encourage economic participation in the system because the more the currencies are exchanged for economic activities, the more valuable they become and the higher the yield the participants get. The various yield system will be discussed subsequently.Blockchain and cryptocurrency technology :
This blockchain technology and cryptocurrency are used to get the asset of stored value involved in everyday transactions. With this technology assets of stored value will get involve in day to day economic activities. This will help strengthen the economic value of such assets and also grants holders of such assets in the kinesis monetary system yields for holding the asset.
The kinesis system can be applied to anything that is standardized, traded and used as store of value. Kinesis is working to increase the asset scope of the system and break into several more industries and institutions.
THE FOUR MARKETS KINESIS IS MAJORING ON AND THE IMPACT IT IS EXPECTED TO MAKE IN EACH OF THE MARKETS
Kinesis is currently concentrating on four major markets. It is designed to be applied to any market but these are the four markets that it is concentrating on at present.
The cryptocurrency market.
Gold and silver markets
Fiat currency markets
Asset investment markets
1. Impact kinesis intends to create in the crypto market
The highly volatile nature of crypto currencies limits their adoption as means of exchange for goods and services and as currencies of store of value. If cryptocurrencies will play a great part in the global economy, it has to exhibit some form of stability. Backing asset of stored value to a 1:1 ratio with the kinesis cryptos will enable cryptocurrencies to play their needed role in the global.
This kinesis system that seeks to create stability in the crypto market will favour the global adoption of cryptos as means of payment and currencies of store value. This will propel immense growth in the crypto market and bring in more key players, institutions and businesses into the sector.
2. Impact kinesis will create in the gold and silver market.
Kinesis will break the barrier in the gold and silver market where these assets are only used as store of value in relation to other fiat currencies by getting them involved in everyday economic transactions. Backing these assets with the kinesis currencies and rewarding economic participation through its yield system is a great way for these assets to be utilized in everyday transactions and to encourage more investors to come into the sector as a result of the yield on the asset. As a result, gold and silver will not just be assets of store of value alone. They will be playing the roles of assets and everyday currencies that can be used in transactions. This will help create more value in the asset and open the gold and silver market to people that couldn't access such market previously.
3. Impact of kinesis in the fiat market
Fiat currencies undergo devaluation, government interventions and inflatiinflation. All these make it a bad store of value because the currency loses its value whenever such occurs thereby making it a high risk currency. The kinesis monetary system aims to resolve these issues by encouraging economic activities and giving out yields to those involved in keeping the system running. Government and central bank intervention in the fiat currency market are aimed at stimulating economic activities but the negative effects of such practice on the currencies and holders of such currencies is not making such approach a viable.
The kinesis system will strengthen economic activities by rewarding participation. This will create economic growth, stability of the fiat currency and rewards for holders of such currencies.
4. Impact in the bullion markets
The bullion market still employs old practices that includes over the counter trading through phone calls or emails that's very slow and ineffective, difficult to break into by small organizations because of the many steps involve, lack of clear cut direction on how investors can access the market etc. With kinesis, all these problems will be a thing of the past.
Kinesis will digitalize trading in the bullion market and make it fast and effective. This move will ensure that organizations interested in the sectors are not subjected to the intricacies of breaking into the sector. Also, localized bullion traders across the globe can be able to participate in the global bullion market as a result of the kinesis monetary system. This will break the barrier to entry in the bullion market and make the market accessible to anyone that is interested in joining such market.
KINESIS STRATEGY EXECUTION
Kinesis has entered into partnership with some reputation organizations to aid its execution. One of such organizations is ABX a third- party auditing and verification system in the wholesale bullion market. The ABX system grants kinesis users easy access to the bullion market. Kinesis users can easily participate in the trade of bullion through this network. Kinesis is also in partnership with other organizations of high reputes for the enhancement of the quick adoption of its system.
KINESIS INITIAL TOKEN OFFERING (ITO)
Kinesis velocity token ( KVT) is the token that will be used to launch the kinesis monetary system. This token is an ERC20 compatible utility token. This token is different from KAU and KAG. Users holding this token will be rewarded with a percentage of the transaction fees that occurs within the system. The pre-sale for the ITO is on going and the public sale will commence September 10th to November 11th.
KINESIS INITIAL COIN OFFERING (ICO)
Kinesis gold coin (KAU) and kinesis silver coin (KAG) are the two cryptocurrencies backed 1:1 by gold and silver bullion. These currencies are the medium through which all transactions on the kinesis monetary system will be handled. They control the economy of the system . The ico will commence november 12th.
KINESIS YIELD SYSTEM
The yield system is how users will be rewarded based on their participation in the system. There are various yield system in place based on the role the participants play in the system. Below are the varrious yield system in place.
1. Minter yield :
Minters create kinesis coins by exchanging their gold or silver for kinesis tokens in the primary market. The more gold or silver a minter brings into the system, the more coins they'll get and the higher they will earn on their minted investment. Minters exchange physical gold or silver for kinesis coins and the spend those coins in the secondary markets to increase the economy of the system. Minters receive a portion of the transaction fees in the system on the coins they mint for ever.
2. Holder yield :
This yield is paid to those that participate passively in the system. They can invest into the kinesis system in the form of deposits. As others participate in the system, they earn a proportion of the transaction fees.
3. Affiliate yield:
This yield rewards users that bring in new users into the system. As the new users participate in the system, their referrals earn some yields.
4. Depositors yield
Users that bought large initial deposits of kinesis coins will be rewarded using this yield. The higher their deposits and its use in transactions, the higher the yield.
These yields are put in place to enhance participation in the system, thereby increasing the economic viability of the kinesis coins.
KEY FEATURES AND COMPONENTS OF THE KINESIS MONETARY SYSTEM
Some key features and components of the kinesis system are explained below.
Kinesis Currency Exchanges (KCX): A wholesale market where the currency is created and minted with the help of ABX
Kinesis Blockchain Network (KBN): The blockchain on which the suite of Kinesis tokens is built
Kinesis Blockchain Exchange (KBE): A blockchain digital currency exchange where the tokens representing physical assets can be traded
Kinesis Financial Network (KFN): A mobile banking system where the currencies can be used for savings, payments, remittances, and money movement; also includes Mastercard and Visa debit access
Kinesis Commercial Centre (KCC): An online aggregator platform of goods and service providers which accept Kinesis tokens (KAG and KAU) as a means
USE CASE:
Mrs jane was excited to have been paid her gratuities for the years she laboured for her ex companies. The money is quite huge and she didn't want to leave it lying dormant in the bank. She thought of converting the currency to gold and store it as an asset for future use with the bank but the procedures she's required to follow discouraged Her. She was about giving up when she heard about the kinesis monetary system.
She discovered that investing in kinesis gold and silver coins is equivalent to invest in gold and silver bullion and her money will be granting her constant yields. She quickly withdraws her money from the bank and invest it in kinesis asset - backed gold and silver coins. Her money is secured and she is assured of constant yield on her assets for as long as tge system keeps running.
For more information and resources visit:
KINESIS WEBSITE
kinesis2018
https://steemit.com/crypto/@originalworks/980-steem-sponsored-writing-contest-kinesis
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