Kin Economy Report: August 2020
Monthly Updates on Key Economic Metrics
Each month, the Kin Foundation provides an update on key metrics that are used to analyze the strengths and weaknesses of the Kin Economy. These metrics are intended to be leveraged to drive real demand for Kin, which is demand based on the utility Kin provides, not potential speculative value.
August 2020
Net Dollars Bought (NDB)
Net Dollars Bought is Kin purchased (directly or indirectly via alternative methods such as ads) for goods and services by users within the ecosystem, less all Kin paid by the Kin Foundation through the KRE and grants.
As of today, it is still too early to see the reversal of purchases vs issuance. As the ecosystem moves toward a new goal of reaching positive NDB, this is a key metric for anyone who wants to see a stronger Kin Economy.
B/I Ratio
The B/I ratio describes how many Kin are bought for goods and services per Kin issued by the Kin Foundation (all-time).
Developers in the ecosystem have begun to band together via initiatives like Kin Ads in order to generate consumer demand for Kin. This has resulted in a noticeable increase in the B/I ratio, reflecting a large increase in the amount of Kin bought for goods and services per Kin issued by the Kin Foundation.
Kin Spent Per Day
The Kin Economy’s GDP: the amount of Kin spent on goods and services per day. Metrics like MAS were able to capture the number of ecosystem participants; Kin Spent Per Day captures their spending behavior.
Kin GDP continues to show strong signs of growth. As the KRE moves towards more demand-weighted calculation, the importance of creating spends that entice users to demand Kin also increases. For this reason, we forecast continued growth in this metric.
Conclusion
KRE 2.2 officially took effect on August 1st, allowing developers to use methods such as Kin Ads to not only generate consumer demand, but also meaningful revenue for themselves. As we move into the second half of the year we are excited to see the synergy that the developer community is able to achieve, as Kin continues toward the goal of becoming the first cryptocurrency backed by real demand.
To stay up to date with the latest developments in the Kin Ecosystem, follow @Kin_Ecosystem on Twitter: https://www.twitter.com/Kin_Ecosystem
