Kin Economy Report: May 2020

Monthly Updates on Key Economic Metrics

Kin is more than just code — it’s a new digital economy. This is a living financial system centered around a new currency that enters circulation via the Kin Reserves, a secure cache of Kin strategically allocated regularly by the Kin Foundation, a non profit organization. In order to fulfill its potential, this economy needs to be regularly monitored, and the Kin Foundation, much like the Federal Reserve, must make monetary policy decisions to help foster its growth.

Over time, the metrics used to analyze this growth have evolved in order to be able to more finely measure the effectiveness of the Kin Foundation’s efforts. One of the goals with these refined metrics is to drive real demand for Kin, which is demand based on the utility Kin provides, not any potential speculative value.

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.

To date, the Kin Rewards Engine has primarily rewarded developers for getting their users to spend Kin, while this doesn’t directly incentivize Net Dollars Bought it is a requisite precursor to getting people into the economy who will transition to buyers. To facilitate that, the KRE has evolved and has begun to reward the generation of real demand via the “buy track’’, which should result in a positive impact on 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).

This number is expressed as a positive ratio that should increase over time as more Kin is bought for goods and services. With KRE 2.0, the amount of Kin issued is also becoming increasingly correlated to demand generated, which could result in a compounded positive increase.

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. Developers have leveraged this opportunity to create refined user experiences that have resulted in much higher spending.

Conclusion

As reflected by the data, the Kin economy is alive and well, and there is continued growth in key areas that function as indicators of its health. As the ecosystem continues to evolve, these statistics should mature in parallel. By refining the parameters through which success is measured, the Kin Foundation will be able to have an increasingly positive impact in fostering the growth of this new digital economy. That said, it may also take some time for the ecosystem to adjust to a demand weighted incentive model, which could result in volatility along the way. Stay tuned for more updates on these key metrics in the future, as we continue to monitor and report on the state of the Kin Economy.

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