Preamble
We at one time or the other listened to Fiat market makers discrediting cryptocurrency using volatility as an excuse because their ideologies and views on the financial system has been opposed or criticized and they are about to lose their stake in the financial sector. They turned blind eye to the several benefits of cryptocurrencies and refuse to accept the fact that cryptocurrency has come to revolutionize our digital world. They make profit from the unfair system and challenge any hope of fairness from any other system. These players make defamatory statements on the internet with the sole aim of discouraging and nipping the bud of global adoption of cryptocurrencies. They bank on the volatility of cryptocurrencies to support their claims but today, kinesis is here to prove them wrong.
Kinesis is not just a crypto asset-centered system as it also emcompasses the gold and silver market, the Fiat market,and the investment asset market.
Investors and traders have been longing for a time where precious metal, Fiat, cryptocurrencies and other physical assets will be synchronized and integrated in a single platform whereby the advantages of one will strike out the disadvantage of another. This is an Express definition of a monetary system where the tremendous benefits of modern technology is merged with the oldest and most sustainable form of exchange to develop a universally adopted decentralized asset-backed monetary system that is fair, stable, sustainable, secured, Scalable, rewarding, reliable and trustworthy to eliminate the volatility of cryptocurrencies and price inflation of Fiat currency.
So what is kinesis?
Kinesis is a full-circle monetary system built on the blockchain with sufficient elements and features required for a successful and efficient monetary system to empower and serve the interest of all equally and capitalistically.
Kinesis is designed with the ultimate goal of overcoming the challenges facing the global monetary system by fusing gold and silver, yield and blockchain technology with Fiat and asset-backed currency to reform the global financial system.
In kinesis, holders of its currency are rewarded to ensure adequate circulation and currency velocity. However, new money is injected into the system by operating an attractive 1:1(money to direct allocated asset backing) risk/return ratio complemented with a unique multifaceted yield system that promotes usage, exchange and capital velocity.
Since kinesis is a feasible global target project, this action itself will be a channel whereby most world currencies and assets will be fused into the system for value appreciation and useability.
In lieu with this, kinesis developers are developing a kinetically charged cryptocurrency suite with allocated title of bullion, Fiat bank notes, cryptocurrencies and other assets that are secured physically and digitally stored in kinesis banking and asset management system.
Kinesis is not just about cryptocurrency alone, any physical asset of value and currency can be integrated into this modern monetary system to have a fair share of non-inflation and greater returns for values. Thus, one can define kinesis as a blockchain monetary system targeted at minimizing risk, maximizing returns, stimulating velocity and thereby maximizing the chance of global adoption.
Vision statement
As enshrined in kinesis white paper page 3, This project is all about delivering an evolutionary step beyond any monetary system by stimulating the movement of money, assets, commerce and economic activities in a fair, honest and rewarding way.
Mission Statement
- To deliver an internationally fungible monetary system designed to give back to those who participated and thus creating a solution for the global need for sound and reliable money.
- Inventivising the use of digital asset as a medium of exchange not as a currency for holding thereby facilitating the global adoption of cryptocurrencies and maximizing these potentials in their various use-cases.
Problem Statement and Solution Plan- The road to Stardom
Every blockchain project is known by two things;
✓ The problem(s) it is developed to solve.
✓ The solution plan for the identified problem(s).
Every problem solving module stems from problem identication. Thus , kinesis has identified the three major areas which are cryptocurrency market, Fiat market, asset-backed market and the bullion market. These markets has distinctive problems causing an unfair financial system. The problems and the solution plan are outlined below.
Cryptocurrency Market
- Volatility: Before any decentralized system can attain global adoption, it must have a stable economy with little or no volatility. However, a critical view at the price uncertainty and volatility of cryptocurrency Brain child- Bitcoin, global adoption is not feasible even though it present a better alternative to the current financial system but nevertheless it has succeeded in opening doors for the emergence of kinesis.
Kinesis however will eliminate volatility of kinesis currency by stabilizing its value with a direct allocated physical asset backing. An holder of a single kinesis currency will be entitled to the equivalent in physical asset.
Fiat Currency Market Problem
- Currency Devaluation : Fiat currencies from inception has been experiencing devaluation and value collapse thus making it a poor store of value. This has had negative impacts on the holders and traders of such currency.
- Centralized System : The centralized system has had this problem of manipulation, partiality, oppression and economic war due to the fact that power and decion making is concentrated at the centre giving room to corrupt practices. The only way to bring an end to such menace is to switch over to a decentralized system. With a highly decentralized platform like kinesis, these nightmares will finally come to an end.
Asset-Backed Market
- Gresham's Law of Money: Gesham's law of money which states that bad money drives out good is a plague in the asset-backed market and a cancerworm in the cryptocurrency market eating slowly but steadily into the core of the market. This is simple a case where those who hold a valuable currency or asset do not want to spend it, instead they choose to spend the less-valuable currency. This problem is combatted in the kinesis platform by inventivising the utilization of value assets by attaching an attractive reward system to the platform.
- Yield : Holding assets and other physical valuables doesn't generate any yield per time instead cost is incurred in form of security and storage fee. For this, physical assets have been abandoned by investors for interest yielding currency or asset. Kinesis solve this problem by attaching multiple streams of yield whereby holders of these assets depending on their level of participation stand the chance of getting reward from the yield of their assets.
- Security : There have been countless occurrence of theft and fraud in the asset-backed currency even the much envied asset-backed cryptocurrency called tether.
This has made investors grew weary of the draw back in these assets thus searching for a better alternative. In kinesis, the physical handling, clearing, storage and delivery mechanisms are integrated into the regulated commodity clearing House of one of the largest exchange group called Deutsche Borse Group. Integration of multi-layered third party audit and verification system of ABX's Quality Assurance Framework is another another giant stride taken by kinesis team. ABX is a global wholesale spot Bullion exchange which has been operating without blemish for about 5years with a large number of trades in it platform.
Bullion Market
- Archaic and Manual Market: kinesis partners with ABX to provide serial number and bar Hallmark as an ideal solution for bi-lateral wholesale trading through the blockchain. This solve the problems market traders in bullion market has been facing due to OTC(Over the counter) trading. OTC is so problematic hectic, manual, inefficient, unreliable and relatively costly.
- Market Inefficiency: Bullion market is usually siloed where traders trade and conduct business transactions fragmentally and independently from one another. Kinesis goal is to connect the traders together for global physical liquidity.
- Limited Resources: Local market participants do not usually have enough resources at their disposal to help in the smooth conduct of their businesses. Kinesis offers the traders a technology that enable them expand their horizon internationally and benefits from international trading and liquidity.
- Restricted Entry : The restrictions on big market entry has left local traders with the option of conducting business in their home regions shielding them from a vast number of local clients. This scenario creates a significant price difference which kinesis intend to solve. Kinesis is a wholesome platform that breaks restrictions and entry barriers but providing local interface trading centers affording traders the liberty to conduct arbitrage trading.
Components of the Kinesis Monetary System
Identifying a problem and proposing a solution is not just enough in solving a problem. There must be components or features embedded in the platform to ensure that these plans are executed. For kinesis, the components embedded in its monetary system that is put in place to ensure smooth compliance to the solution plan are;
✓ Kinesis Currency Exchange (KCX) : This is an institutional global centrally cleared exchange with deep liquidity and connectivity into Allocated Bullion Exchange (ABX) serving as currency creation and minting site.
✓ Kinesis Blockchain Network (KBN) : This is Kinesis suite blockchain where its currency can be sent, spent, saved or traded.
✓ Kinesis Blockchain Exchange (KBE) : This is a blockchain exchange where kinesis and other cryptocurrencies can be traded. This exchange is developed in a way that guarantee an all-time currency liquidity.
✓. Kinesis Finance Network (KFN) : This is a mobile banking network where kinesis currencies can be used for savings or payments, remittance and money movement. This component is programmed to accept global payment system like MasterCard, Visa and other accompanying systems and facilities. KFN has a built-in e-commerce technology suite for movement of kinesis in real time.
✓. Kinesis Commercial Centre (KCC) : This functions as an online goods and service providers aggregator platform for the utilization of the Monetary system as a payment channel for participanting merchants.
Kinesis Currency Suite.... What is it all about?
This suite allows for a 1:1 ratio of Kinesis to dully allocated asset-backed digital currency with Product and payment currencies such as physical gold and silver, segregated physical hold and silver bars, physical bank notes, digital currencies and Currency pair such as physical gold/paper gold.
It is worthy to note that this blockchain is forked from stellar blockchain to leverage the super transaction speed and superior security inherent to Stellar blockchain. However, other unique functionality has been addeed into the system via the currency suite to give room to the incorporation of other value-added features which are;
- Gold Currency (KAU) : This is defined as 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 refinery as per ABX Quality Assurance Framework.
- Silver Currency (KAG) : This is defined as 10grams silver contract and token consisting of silver cast bars of a minimum fineness of 999 and being an identity stamp of a refinery per ABX Quality Assurance Framework.
- Gold Wholesale Currency (KWG) which is 1 fine KG gold contract and token consisting of gold cast bars of minimum fineness of 9999 and bearing a serial number and identifying stamp of a refiner as per ABX QUALITY ASSURANCE FRAMEWORK.
- Silver Wholesale Contract (KWS) : This is 1000 Troy ounces of silver Contract and token consisting of silver cast bars of minimum fineness of 999 and identifying stamp of a refiner as per ABX QUALITY ASSURANCE FRAMEWORK.
Velocity-Based Yield System- Investors' Driving Force
This is a multifaceted yield system that is designed to attract institutional and retail capital by valuation via economic output instead of debt and also inventivising the use and velocity of the currency suite. The key functions of Kinesis Velocity-Based yield system are;
✓. Provision of a stabilizing force through participants incentivisation to create high money/asset velocity thereby eradicating volatility.
✓. Provision of a fair economic implication through transparency and equity of participants.
✓. Provision of a Superior substitute to tether by using a multi-asset backing with tremendous liquidity.
How can one benefit from Kinesis Velocity-Based yield system?
Every participant in Kinesis system can benefit in more than that one way depending in his level of participation in the system. These are:
- Kinesis Minter : As a minter, a participant will receive a yield by simply purchasing Kinesis currency in the KCX( Kinesis Currency Exchange) Platform and using it as a means of transaction. The yield is derived from perpetual share of transaction fee from coins the minter traded in proportion to all coins on existence.
- Kinesis Depositor : As a depositor, the participant receives a yield on their initial deposit and purchase of Kinesis from their wallet in the KFN (Kinesis Financial Network) once they are sent or spent. The yield is derived from the transaction fee as the currency circulates from one participant to another.
- Kinesis Holders : As a holder, a participant receives a yield for holding the currency on their Kinesis wallet. The yield is derived from consolidated share of the transaction fees across the network.
- Kinesis Affiliates : For affiliate participants, their yield will stem from shares on all transaction fees from the participants they recruit. This is a perfect business model for freelancers who are expert in digital marketing thereby creating a superb business network.
Use Case
Mr. John a final year college student struggling to survive is looking for a means to earn extra money to finance his final year research project. He is also a prudent online marketer who is very careful of the product he promotes. His roommate Jones Charleston just won a lottery of $1million and is looking for a profitable business to invest in. He is afraid of investing in cryptocurrencies because of volatility and same with Fiat because of price inflation. His father, Mr. Charleston deals with precious metal. He buys these precious metal and sell it after 5years . After a fiscal study of his business, he realised that the profit gained after 5years is offset by the cost of security and storage, so he now seek for a better alternative.
After reading about Kinesis, John realised that he can earn passive income by being an affiliate participant in the kinesis Monetary system while his downlines are actively involved in the platform. He organized a Meetup where most of his colleagues attended together with his roommate Jones Charleston and his father Mr. Charleston. At the end of the meeting, they agreed to participate in the Platform...
John earned as an affiliate participant
Jones earned as a Miner, depositor and holder because he chose to hold some while actively trading others.
Mr. Charleston also earned as a depositor.
Other colleagues had the opportunity to earn one way or the other on the platform.
Conclusion
Kinesis is not just the missing puzzle in the financial sector, it is the key to the revolution of our world in general and the financial system in particular. The team of developers have studied the problems in the monetary System and profer a timeless solution from a great system that will bring an end to cryptocurrency volatility, inflation and unfair monetary system.
Kinesis Launch Timeline
Kinesis Landmark Events Timeline
Token Information
The Team behind Kinesis
Check out my video on YouTube about Kinesis
You can also take a look at my tweet about Kinesis on Twitter here
Kinesistwitter
Not satisfied with the information above, watch the official video from more information
Or visit the official link below
https://kinesis.money/en/kinesis-etheralabs/
Sources
All information contained in this post is obtained from Kinesis public domain documents. Other information used in this post is duly referenced
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I'm sure Kinesis will come to stay bro
Nice work
Great article, @sammynathaniels!