Kin Economy Report: June 2020

Monthly Updates on Key Economic Metrics

As a new digital economy, the metrics used to analyze the strengths and weaknesses of Kin have evolved over time. 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. Here is an update on those metrics:

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.

Efforts to generate consumer demand and turn spenders to buyers are already underway. As more value is derived from the Kin issued into circulation, economic supporters should hope to see an increased rate of deceleration. As of today, it is still too early to tell how much recent initiatives have resulted in a deceleration of the downward trajectory of Lifetime NDB.

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).

Overall, the rise in the amount of Kin bought for goods and services per kin issued has gone up and stayed up. While it is too early to be conclusive, this is a good sign of the statistical increase being backed by organic growth, and having longer term permanence. You can also see a recent spike in B/I due to a purchase of Kin by the Kin Ads team.

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 Amount of Kin Spent Per Day within the ecosystem of consumer apps has multiplied since the implementation of KRE 2.0 and the incentivization of higher volume spending, and has continued to range in a new upper bound. Similarly, this is a good sign that the growth is stable and healthy.

Conclusion

As more data manifests itself, trajectories and trends begin to come into view which afford us a deeper understanding of the state of the Kin Economy. As it stands, the monetary policy enacted has had a notably positive effect on the macro economy. As these policies continue to evolve, so should our grasp of the key data points worth tracking.