Kin Economy Report: July 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.

July 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.

While it is still too early to tell how much recent initiatives have resulted in a deceleration of the downward trajectory of Lifetime NDB, Net Dollars Bought is still an important stat to keep our eyes on. One of the goals of the ecosystem should be to achieve positive net dollars bought, or in other words, more Kin being bought for goods and services on a regular basis than the velocity of Kin entering circulation via the Kin Reserves.

B/I Ratio

The B/I ratio describes how much Kin is bought for goods and services per Kin issued by the Kin Foundation (all-time).

Now that the Kin Ads team is contributing to NDB, we can already see the Bought / Issued Ratio climbing. That means more Kin in circulation is being purchased for goods and services than ever before.

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.

The stable upward trajectory of Kin GDP continues to show strong signs of economic growth. The increased spending of consumers indicates that KRE 2.0 is incentivizing developers to come up with higher quality spend opportunities within their apps, which results in more users willing to part with their Kin on a user experience.

Conclusion

Steady and stable growth are coming into view as common themes in the Kin Economy’s growth. As we begin to see an increased focus on creating organic purchase demand for Kin with KRE 2.2 and beyond, we hope to see an increase in the positive factors of these metrics.

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