Kinesis Silver 백서 전문

Back to Contents ↑ 1 KINESIS MONETARY SYSTEM THE EVOLUTION OF THE GOLD STANDARD WHITEPAPER - 3.1 JUL Y 2020 Back to Contents ↑ 2 CONTENT ABSTRACT INTRODUCTION DESIGN PRINCIPLES KINESIS MONETARY SYSTEM FEATURED COMPONENTS KINESIS CURRENCY SUITE VELOCITY-BASED YIELD SYSTEM KINESIS ECONOMY KINESIS ROADMAP KINESIS VELOCITY TOKEN & INITIAL TOKEN OFFERING (ITO) TEAM CONCLUSION RISK & DISCLAIMERS •• 1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 •• •• •• Back to Contents ↑ 3 ABSTRACT INTRODUCTION With the evolution of blockchain, cryptocurrencies and mobile devices, participants in the global economy have been presented with a profound opportunity: a chance to apply ingenious creativity to money and to be part of an empowering people- centric revolution. Yet, despite this opportunity, current blockchain payment systems and their cryptocurrencies have suffered from severe price volatility, limiting their holder’s desire to be used as tender. This makes many of these mediums unsuitable for commercial exchange. The Kinesis Monetary System is specifically designed to overcome these drawbacks through the development of a universally adopted, decentralized, asset-backed monetary system. A monetary system that is efficient, secure, fair, and incentivizes commercial exchange. This system combines new world decentralized technology with the oldest, fairest, and most sustainable form of money, to empower and serve the interests of us all equally and capitalistically. This paper outlines our vision and philosophy behind the Kinesis Monetary System, detailing the core components and products supporting its innovative ecosystem. More importantly, analysis is provided that specifically highlights Kinesis’ unique currency specifications and quantitatively proves the concept behind our incentivized multifaceted yield system. These features differentiate Kinesis as a stable, useful, secure, and rewarding platform to facilitate commerce. 1.1 Vision The vision for Kinesis is to deliver an evolutionary step beyond any monetary system available in the world today. A system that through participation, enhances money as both a store of value and as a medium of exchange, for the benefit of all. Much the same as our sun unconditionally delivers an indiscriminate share of energy to planet Earth that stimulates life, we see Kinesis as a comparative energy system to stimulate the movement of money, assets, commerce, and economic activity in a fair, honest, and rewarding process. 1.2 Mission The mission of the Kinesis monetary system is to deliver an internationally fungible monetary system, designed to give back to those who participate, and thus, create a solution for the global need for sound, reliable money. It is understood that for sound money to be a successful global transaction currency against legal tender currencies, Sir Thomas Gresham’s economic principle that “bad money drives out good” must be defeated. This is an observation of human behaviour and money where people who value one currency over another will hold onto and hoard the more valued tender, while spending the currency they value less. Similarly, given cryptocurrency market volatility, it is often a crypto-holder’s view that their crypto-assets will rise in value or that they must hold on to them to wait for prices to recover. As a result, there is no incentive for that token to be used as a medium of exchange, thus promoting hoarding behaviour. 1.3 Kinesis Monetary System Kinesis, in its world changing mission, embraces and rewards the use of its own currency, stimulating the movement of capital, acting as a system that encourages commerce and economic activity. Core to the mechanics of the system is the perpetual Back to Contents ↑ 4 incentive and stimulus for money velocity. Outside capital is attracted into Kinesis via a very attractive risk/return ratio and then put into highly stimulated movement. This is achieved through giving money 1:1 direct allocated asset backing and then attaching a unique multifaceted yield system that promotes exchange and fairly shares the wealth generated by the Kinesis Monetary System according to participation and capital velocity. The primary elements of Kinesis are: • Gold & Silver – Kinesis’ primary currencies are backed 1:1 with allocated physical gold & silver, the greatest stable and definable stores of value for use in commercial and private transactions and investment. Allocated means that full direct title to the bullion used for the 1:1 backing of KAU and KAG coins is allocated to the owner of the respective coin. • Yield - A perpetually recurring yield generated from economic activity, not from debt-based interest like fiat currency. Provides definable value via Net Present Value (NPV) calculations for use in commercial, institutional and retail investment. • Blockchain & Cryptocurrency Technology - Enhanced by asset-backed currency and multifaceted yield system The Kinesis system can be overlaid on top of anything that can be standardized, traded, and stored as value. Accordingly, we are developing a kinetically charged cryptocurrency suite with allocated title of bullion, fiat banknotes, cryptocurrencies, and other assets that are secured physically and digitally stored in our allocated Kinesis banking and asset management system. By attaching a yield to currency or asset tokens, risk/return ratios can be forecasted and virtually all currency and investment asset markets can be targeted and infiltrated. As such, over time we plan for more currencies and assets to be added, ultimately infiltrating more markets spread across the world. This form of currency has necessary real-world application in both commerce and private transactions, along with attracting capital from institutional and retail investors as well as savers. Kinesis will attract capital from markets that are currently experiencing little or comparatively low yields. These include: 1. Cryptocurrency Markets 2. Gold & Silver Markets 3. Fiat Currency Markets 4. Investment Asset Markets Given the Kinesis Monetary System’s stability and security, participating in the Kinesis system is inherently less risky than these alternative markets and offers potentially greater return. Furthermore, where banks conversely hold legal title of their customer’s deposits and can put these deposits at risk through highly leveraged lending strategies, the Kinesis Monetary System allocates title directly to the ultimate beneficial owner. Thus, at its core, Kinesis is a monetary system focused on minimizing risk, maximizing return, stimulating velocity, and maximizing the rate of adoption. 1.4 Strategic Partner - Allocated Bullion Exchange (ABX) Kinesis and the Kinesis Monetary System has been developed in partnership with public company; Allocated Bullion Exchange (ABX) www.abx.com, the world’s leading electronic institutional exchange for allocated, physical precious metals has been in operation since 2013, has seven trading, pricing and vaulting hubs across the globe and has recently partnered with Deutsche Borse Group entity European Commodity Clearing (ECC) for clearing and settlement services (https://abx.com/2017/11/15/ ecc-abx/). Back to Contents ↑ 5 1.5 Sequencing The development, roll-out and commencement of the Kinesis Monetary System have been comprised of two distinct and sequenced events (described within this whitepaper): a) The Initial Token Offering (ITO) of the Kinesis Velocity Token (KVT); an ERC20 compatible utility token. KVTs are the capital raising vehicle to support the global Kinesis Monetary System. Holders of KVTs collectively earn a percentage of transaction fees from various business units within the Kinesis Monetary System. The KVT ITO was on public sale from 10 September, 2018 and ended on 29 August, 2019. b) The public release of the first Kinesis Currency Suite of products; each backed 1:1 by direct, allocated precious metals. The first Kinesis cryptocurrencies: KAU (gold-backed coin) and KAG (silver-backed coin) are based on the bespoke Kinesis Blockchain Network (through optimised Stellar technology). KAU and KAG currencies are the medium by which all transactions occur across the Kinesis Monetary System. Kinesis Currencies represent the advent of the creation of KAU and KAG by “minting” and backing the created coins with physical precious metals bullion. The Kinesis Currencies public release commenced on 25 March 2019. DESIGN PRINCIPLES 2.1 Addressing Cryptocurrency Market Problems Volatility in cryptocurrencies make them non-viable stores of value and unsuitable for use as currencies. Given the price uncertainty of the world’s largest coins, it is clear that they are not viable reserve currencies that can facilitate global commerce. These characteristics prevent mass-adoption, as a currency must be stable and mimic a fixed article of exchange in an economy. For example, a business with budgeted profit margins takes a significant risk in accepting these currencies as a form of payment, or as a reserve currency to sit on their balance sheet. Money was created to serve and bring efficiency to commercial transactions. While the early cryptocurrencies have laid the blueprint for a decentralized future, their current limitations prevent their sustainable use in commercial applications. Nevertheless, they have paved the way forward for new and improved innovations like the Kinesis Monetary System 2.2 Addressing Fiat Currency Market Problems Historically, fiat money has never endured a long existence. In fact, every fiat currency since its inception by the Romans has experienced devaluation collapse. This has had significant negative implications on that currencies’ respective economy as well. Similarly, current fiat currencies are also a poor store of value. Central Banks print and devalue money, creating price inflation at their discretion to keep commercial Banks’ lending and consumers spending to maintain economic growth in nominal terms (without inflation taken into account). Furthermore, bank deposits globally are almost universally losing money in real terms by paying interest below the rate of inflation. As a result, the counterparty risk incurred by a depositor for depositing funds with a bank (giving title of your money to a bank) is not fiscally responsible or viable. In addition, these depositors must deal with bail-in provisions, depositors insurance being removed, and interest rates being negligible. The printing of US dollars to stimulate economic activity is having a decreasing positive economic Back to Contents ↑ 6 effect. The US government along with other major governments and monetary systems around the world are funding themselves through deficit funding from central banks. History shows that currency crashes and high inflation or even hyperinflation typically follow these actions. In addition, the US government along with most other major governments are further accumulating an insurmountable level of debt evidenced by the unsustainable rise of federal debt against GDP . In lieu of this, the US government is struggling to meet the interest payments on their debt, notwithstanding rising interest rates. This has led to unfunded off- balance sheet liabilities surpassing the liabilities currently held on balance sheet pointing to the foundations of an insolvent economy. Given this information it is clearly evident that having a central authority, whether it be banks or government, at the center of a monetary system is inherently problematic. These are the issues a stable and decentralized alternative like Kinesis aims to solve. 2.3 Addressing Asset-backed Currency Problems 2.3.1 Gresham’s Law of Money As previously mentioned, Gresham’s Law of Money – “bad money drives out good, ” is an inherent problem plaguing both traditional cryptocurrencies and asset-backed currencies. This is witnessed with gold and silver, where those who hold it over legal tender or fiat currency, typically do not wish to spend it, choosing the less valued fiat currency for everyday transactions. The Kinesis Monetary System defeats Gresham’s Law phenomena by highly incentivizing people to utilize a valuable currency through a multifaceted reward system based upon participation and money velocity that is expanded upon later in this paper. 2.3.2 Yield Other asset-backed currency problems stem from the fact that precious metals and many other assets have no yield attached to them. Furthermore, they actually typically cost money to hold securely. In this respect, a yielding asset like interest bearing bank deposits or stocks paying dividends become a more attractive investment option for investors looking for a yield on their investments. The Kinesis Monetary System gives yield to these precious metals by attaching multiple yields for varying degrees of passive or active participation. As detailed later in this paper, the proposed model outlining the multifaceted yield system offers a more attractive alternative than the yields on offer for passive investors, as well as highly incentivizing participation for those who wish to be active. 2.3.3 Security Asset-backed currencies’ final major problem revolves around security. Historically, there have been multiple cases of fraud involving the use of precious metals and other assets as a payment solution. An investor must be cautious in who they invest with to avoid the risk of fraud and theft. This has already been problematic in asset-backed crypto-currencies as well. For example, recently, Tether, a company that issues a widely traded cryptocurrency purported to be backed by US dollars, has been subpoenaed amid secretive circumstances surrounding the USD backing of their cryptocurrency. Alternatively, Kinesis’ primary currencies are backed 1:1 with allocated physical gold & silver, the greatest stable and definable stores of value for use in commercial and private transactions and investment. Kinesis utilizes the multi-layered third-party audit and verification system of ABX’s Quality Assurance Framework. ABX is a global wholesale spot bullion exchange which has been operating without blemish since 2013 and has large physical broker/dealers and traders around the world entrusting its systems. Furthermore, large partnerships are in place with the likes of Deutsche Borse Group, one of the largest exchange groups in the world, government owned postal systems, like PT Pos Indonesia, as well as Back to Contents ↑ 7 large established mobile banking and vaulting partners. The physical handling, clearing, storage, and delivery mechanics are currently being integrated into a Deutsche Borse Group’s regulated commodity clearinghouse, European Commodity Clearing, who must also maintain approval and acceptance from the German financial regulator. All bullion has a verified audit trail with multilayered third-party audit and verification in place and regularly audited and transparent holdings system. 2.4 Addressing Bullion Market Problems 2.4.1 Archaic & Inefficient Market Wholesale bullion market participants currently trade over-the-counter (OTC) in the physical markets largely outside of the electronic environment either via phone, email, or in person. These systems are completely manual, problematic, inefficient and costly. Phone dealing desks are costly and involve manually booking a trade, placing a physical order with a supplier, and hedging the trade. There is an acceptance in the market that the legacy OTC London market architecture is outdated and there is a need for a transition to new globally efficient digital system. Kinesis via its institutional integration with ABX and its operationally segregated wholesale contracts, which offer serial number and bar hallmark, provides an ideal solution for bi-lateral wholesale trading through the blockchain. This solution will be promoted in partnership with ABX and their extensive network of institutional partners. 2.4.2 Siloed and Inefficient Market Local physical markets currently trade in a very siloed manner, completely independent and disconnected from one another. Kinesis will efficiently interface these markets and aggregate global physical liquidity. 2.4.3 Limited Resources Many organizations currently do not have the resources to conduct the necessary due diligence, understand the regulatory framework and establish global operations. Kinesis’ system and technology allows local market participants to expand their horizons internationally. These additional markets enable them to benefit from international liquidity and attract international clients. 2.4.4 Barriers to Entry There are significant barriers of entry into the local physical market. Outside of the big bullion banks or international trading houses, local market participants typically only trade in their home region thereby limiting them to primarily local clients. In the absence of a pre-existing global aggregator platform, substantial price differentials exist in the different liquidity centres around the world. Kinesis breaks down the barriers to entry to each physical market and directly interface these trading centres allowing traders to arbitrage the differential. 2.4.5 Market Access Unlike in the energy or base commodity space, precious metal producers (suppliers) have no pre- existing way to enter the wholesale market directly. There are challenging barriers to entry for end consumers (Jewellers, Manufactures & Investors) to directly access the wholesale market. The physical trade flow of bullion typically passes through a series of intermediaries. ABX provides this facility to enable suppliers to act as Liquidity Providers and access our exchange directly and sell metal at the “Offer” price. Currently, producers must sell to an intermediary and hit their “Bid”, which decreases their revenues materially. As the vast majority of producers sell at spot this is a compelling proposition for them. Additionally, ABX integrates the physical trade cycle, allowing for end consumers to access the exchange directly. By changing the physical price maker and taker dynamics we contend that we will change the price discovery dynamics of the precious metals market. We also contend that by bringing the producers directly onto our platform we will bring the rest of the industry into our market. Back to Contents ↑ 8 KINESIS MONETARY SYSTEM FEATURED COMPONENTS Kinesis is a full-circle monetary system made up of all elements and functions required for a successful and effective monetary system. These differing functions make up different business units within the group. MARKET MAKERS & LIQUIDITY PROVIDERS KINESIS ONBOARDING & DISTRIBUTION PARTNERS: • ABX Members • ABX Vaulting Partners • Extensive network of regional agents • Institutional investor Consortium • Exchanges • Postal Systems • Precious Metal Broker-Dealers • Precious Metal Makers • Network Marketers • Influencers & Affiliates • Merchants • White Labellers KINESIS MINT KCC KINESIS COMMERCIAL CENTRE KFN KINESIS FINANCIAL NETWORK KINESIS EXCHANGE KBN KINESIS BLOCKCHAIN NETWORK Bullion holdings to flow in from ABX via a seamless mechanism and from new investors Deep liquidity for fiat and cryptocurrencies pairs to be exchanged Market makers from ABX making a two-way market with deep liquidity in Kinesis Mint & Kinesis Exchange Newly minted Kinesis emitted into blockchain Members of ECC to trade and clear on ABX New investors can solely setup an e-wallet ABX & ECC partnered to develop global leading physical bullion exchange 23 clearing banks +400 members Immediate utilisation of Kinesis currency in KCC an aggregated mo