Kinesis is Sound Money you can use Today is something new – it is a take on Sound Money that is only possible due to the invention of the distributed ledger.

When people think about Sound Money they generally think about currency that is made of precious metals.  A $20 gold coin, or pre-1964 coins that contained actual silver.  We live in the 21st Century though, and many of our purchases are made online, and even for in-person purchases most people use a credit or debit card for convenience purposes.

Paper currency arose naturally from a desire to protect your savings by depositing it in a bank and receive an IOU (certificate). These certificates where then spent or transferred, since it was more convenient than carrying the gold/silver around.  The banks would lend out the gold in return for a yield on your savings.  This system was imperfect, especially after the creation of the Federal Reserve, since the gold held by banks would get lent out multiple times creating a systemic risk.

Kinesis is made to fit into this modern era, and can be used as easily online as it can in person.  It’s digital sound money that can be spent via a VISA debit card, used for person-to-person payment, spent via Kinesis-specific payment protocols (this site is one of the first in the world to do so,) and will earn a yield while sitting in your account, similar to a savings account. And in contrast to the old paper system, it’s 1:1 with yields paid via transaction fees rather than fractional lending!

How Kinesis Works

Kinesis has two components: the physical precious metals component, and the distributed ledger component.  Together these form a modern sound money.

Physical Metal as the Base of Kinesis

Without users, Kinesis is nothing more than a series of empty vaults with some computers running code.  Kinesis is the platform that allows the system to work, but all of the assets in the system are owned by the users of the system.  Kinesis, like any vaulting service, has a bailee relationship with its users.

The Main points of the tangible side of Kinesis are as follows:

The Kinesis Blockchain

Distributed Ledger Technology is what made Kinesis possible.  The distributed ledger is what transforms Kinesis from a vaulting service to a full-blown digital currency based on sound money principles.

A Brief Note on Kinesis Yields

Kinesis yields are innovative, and at first glance many people instinctively say “that’s not possible – this must be a scam of some kind.”  The yields are real however, they are just unique.  Kinesis figured out how to make gold and silver produce a yield without any risks from fractional reserve banking, leasing, or any traditional method.  Kinesis yields are funded solely by transaction fees – the higher the velocity of money, the greater the yields.

As mentioned above, every transaction on the Kinesis blockchain has a transaction fee assessed.  This fee varies between 0.22% for purchases on the Kinesis Exchange and topping up your VISA card, to 0.45% for wallet-to-wallet transfers.  If you spend $200 on your Kinesis VISA at the grocery store, you also paid $0.44 worth of gold/silver when you topped off your card.  If you buy a riding lawn mower from me for $1,000 and we use Kinesis, you’re actually paying $1,004.50 of metal, and $4.50 of gold/silver goes into the Master Fee Pool.  These tiny fees add up to a significant amount, and this pool of fees is what pays yields in Kinesis.

Overall, 57.5% of the fees generated in Kinesis go back to users of the system.  Kinesis funds itself and makes its profit on 17.5% of the fee pool. 20% goes to partners which expands the system.

The system was clearly designed for it’s users vs. as a profit center for the company. It’s more of a member owned credit union than a traditional bank.

A Kinesis Walkthrough

Let’s assume you want to try Kinesis out for yourself, because you see the value of saving in gold and silver instead of dollars (or pounds, or euros) in this inflationary era.  We will start by transferring in enough dollars to mint 100 KAU – as I type this that represents $5,623. For a simpler approach, see the last bullet.

Now your money is in the Kinesis system, in its native currencies of KAU (digital gold) and KAG (digital silver).  Every day your assets are sitting in your account they are accruing holder’s yield, so you’re being paid to vault with Kinesis.  If you minted your KAU and KAG, as soon as you spend those coins they start to earn the minter’s yield, paid in gold and silver, forever.   If you didn’t mint coins, then the amount of KAU and KAG you bought on the Kinesis Exchange in the first couple of weeks after your first desposit is recorded, and you receive a depositor’s yield in perpetuity instead.

If Kinesis works well for you and you refer friends, if you get them to use your signup link you’ll be entitled to referrer’s yield, which is 7.5% of the fees your friends pay in Kinesis.

If you’re really impressed and want to buy into the system, you can purchase KVT tokens.  There are a hard limit of 300,000 KVT that will ever exist, and these were what was used to fund the development of Kinesis and encourage its use.  20% of the master fee pool is paid to KVT owners, proportionally.  KVT are currently being sold for $1,500 each to users not in the United States.  If you live in the United States and would like to purchase KVT then we can sell you some. And in order to spread ownership of the system, we sell the first two at a discount.  See this article. If you are signing up for Kinesis, please use a referral link from a friend or family.  If you don’t have a referral link, please consider using ours.

Yields are really the killer feature of Kinesis, and it can take a while to get your head wrapped around the concept.  We strongly encourage you to watch the videos Kinesis makes available that cover yields – it takes about 22 minutes to watch them all.