A new monetary system is aiming to overcome the “severe price volatility” which has made cryptocurrencies unappealing to use as tender — creating two primary digital currencies which are based on gold and silver.
Kinesis says these currencies — known as KAU and KAG — are based one-to one on allocated physical gold and silver. This means that the full, direct title to the bullion backing these coins is held by the person who owns the cryptocurrency. These coins can be loaded on to a debit card and instantly converted into fiat for payments to merchants who accept Visa and Mastercard, and the company says users will also be able to withdraw funds from cash machines.
In explaining its rationale for using gold and silver[1] as the basis for a digital currency, Kinesis[2] described these assets as “two of the greatest stable and definable stores of value for trade and investment.”
A proprietary blockchain network has been developed for Kinesis’s monetary system, which is forked off the Stellar[3] blockchain — and the team behind the platform says its users stand to benefit from “very high” transaction speeds and customizable fees.
Yields for participation
Kinesis[4] says that passive or active users in its ecosystem stand to gain a yield for their participation — and the company has split this into four distinct categories.
The first is known as the Minter Yield. When a user converts their fiat currency or physical bullion holdings into KAU and KAG coins — a transaction that can be completed on the platform’s Primary Market — they receive a five percent share of the transaction fees on the coins they create and use. Users
