The biggest problem that seems to confront the adoption of cryptocurrency as a means of exchange is the relatively high volatility of the market. Many attributes this to manipulation by whales, which is not far from the truth.
Although there is perpetual influx of investors into the cryptocurrency space which is evident from the increasing market statistics with total market cap running into half a trillion dollars; still an astonishing feat to achieve in less than a decade since bitcoin launched.
Still at the infant stage, this technology offers a lot of promises which makes it appealing for institutional investors, asset managers and commercial service vendors to adopt. But they fear the high volatility of cryptocurrency makes it less attractive to be used as a means of exchange just like the conventional fiat currency.
Today, the due to activities of centralised agencies such as central banks, fiat currency is fast becoming a poor store of value while the volatile nature of crypto asset makes it a less viable option as a tender or means of exchange.
According to Gresham law of money : "bad money drives out good money" this is a trend which is inherent in the traditional cryptocurrencies and asset-backed currencies as the holders of these asset class are likely to spend more of fiat currency during a flat market and hold their token or gold asset until the price rises. This creates a scarcity of that token which makes it an unrealistic means of value exchange.
The Kinesis Monetary System is designed to tackle this challenges
Watch our intro video
Kinesis Monetary System is a universally adopted, incentive-based economy and decentralized asset-backed monetary system.
The Kinesis Monetary system is borne out of the need to create a single currency which can be used as
- An acceptable means of exchange or tender
- A stable and secure store of value
Inorder to achieve this they look to leverage a physical asset like bullion, seen as a genuine store of value although not easily transported with the ease of transfer offered by a digital currency asset such as cryptocurrency.
Therefore the 3 core assets of the Kinesis Monetary System (KMS) are
Gold-backed cryptocurrency (KAU) and Silver-backed cryptocurrency (KAG). ownership of the physical assets are ascribed to the token holder.
Yield - A yield based system created to incentivize token holders and asset-owners for spending, selling and sending within the Kinesis ecosystem
Blockchain : Enhanced by the asset-backed cryptocurrency and the multifaceted yield system
Attaching a high yield to the asset-backed cryptocurrencies effectively ensures a more stable cryptocurrency as users are able to forecast their risk/return ratios. Therefore, Investors money and assets inherently serves as a store of value and a means of exchange by transfer to asset-backed cryptocurrency of their choice.
This type of asset will find real world applications in both commerce and private transactions.
The yield system is designed to drive the economy of the Kinesis blockchain by offering high incentives to both active and passive users of the platform who perform certain specific actions. Obviously users are encoiraged to be active to get more reward.
The Minter's Reward
The steps to be eligible for this reward are outlined below
- Minter's deposit fiat currency or physical bullion holdings
- The Kinesis currency is minted and then emitted into your Kinesis hard or e-wallet.
- Your e-wallet which holds your digitally allocated bullion is connected to the bespoke folk of stellar network ready for sending, spending and selling.
- Minter's can activate a proportional 5% reward of the transactional fees on the kinesis currency they created by sending, selling and spending.
The Holder's Reward
In a similar vein, holder's of the kinesis currencies also receive a proportional 15% share of the transaction fees generated while holding the respective Kinesis currencies.
To be eligible for this reward
*Funds need to be stored in the Kinesis wallet
Adding an extra security
Inorder to accelerate the mass adoption of the Kinesis currency, a seperate token, KVT (Kinesis Velocity Token) was created.
Therefore, KVT holders receives a share of all transaction fees generated by Kinesis currency. The more Kinesis currency is used , the more the reward.
> The KVT is an ERC20 compatible utility token. KVTs are the capital raising vehicle to support global Kinesis Monetary System. The KVT ITO (Initial Token Offering) is currently in pre-sale, public sale to launch on 10 September 2018.
The Kinesis Currency Suite is a key feature of the Kinesis Monetary System which entails the full backing of a digital asset with respect to a physical asset like gold or silver in 1:1 ratio.
Assets that could be incorporated :
- Digital Currencies : TBA
- Physical Banknotes : EUR, JPY, GBP,CHF
- Segregated Physical Gold and Silver bars
- Physical Gold and Silver
Source : Whitepaper
Gold Currency (KAU)
The KAU currency along with KAG currency represents the first set of asset-backed digital currency on the bespoke Kinesis Blockchain Network that will serve as the medium by which all transactions occur accross the Kinesis Monetary Suite (KMS).
Both form of digital currencies, KAG and KAU are created by minting and backing the created coins with physical precious bullion
Source: Whitepaper page 5
Description : 1 fine gram gold contract and token
consisting of gold cast bars of minimum fineness of 995
and bearing a serial number and identifying stamp of a refiner as per ABX
Quality Assurance Framework
Silver Currency (KAG)
A silver-backed equivalent cryptocurrency with the same use case as the KAU.
Description : 10 grams silver contract and token,
consisting of silver cast bars of a minimum fineness of 999,
and bearing an identifying stamp of a refiner as per ABX
Quality Assurance Framework
- Kinesis Currency Exchange (KCX)
KCX functions as 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.
√ Secured and fast transaction on the stellar blockchain in the range of nano seconds
√ Stable means of exchange, a case for commercial adoption of cryptocurrency
√ A viable store of value
√ An incentive-reward system for active and passive users
√ A means of entry into the bullion physical market
√ No cost accrued in saving your bullion assets in any of their 7 vaults around the world
√ Delivery of your bullion asset to your location is free of charge
√ As a digital OTC(Over the Counter) alternative for bullion exchange
√ A decentralized economy where the user has control of his assets.
The Kinesis Monetary Suite can serve as a legacy platform for institutional investors, commercial service providers, bullion miners, traders and savers who will love to adopt cryptocurrency as their means of exchange or as a store of value with little or no risk involved because the KMS is leveraged to ensure every body benefits fairly while adding value to each other.
On one of his visit to a friend to plan his life after retirement. His eyes flipped at a topic;which reads"Kinesis : The gateway to mainstream cryptocurrency adoption as a stable means of exchange and store of value" in one of the dailies accross the table.
He got interested, read the article and did his research until he ended up investing with Kinesis. Now he gets all the benefits of using his cryptocurrency to buy, sell and transfer while also deriving high yield from his investments, store his physical asset free of charge and ultimately build a security for life after retirement.
One year down the line, he now view Kinesis as a low-risk cryptocurrency investment with high yields and he recommends it to his friends.
The conventional fiat money doesnt have any intrinsic value which makes it the first commodity investors will be willing to use as a means of exchange when the cryptocurrency market is bearish. This leaves crypto assets as not so viable as a means of exchange whereas a physical asset with an intrinsic worth like gold is not suitable for transaction
Kinesis leverages the benefits inherent in this various forms of currency to create a sustainable cryptocurrency for business transaction and serve as a reliable investment tool.
They have a mutual partnership with ABX (Allocated Bullion Exchange) to help investors oversee a third party functionalities.
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Executive team
Operations team
Development team
Advisors
Link to twitter post
Kinesis2018