Strengthening the Ecosystem: Focusing KRE rewards on P2P & introducing cross-app transfers

The Kin Ecosystem provides a space for fair competition for everyone and a new way to monetize based on user engagement and direct value exchange incentivized by the Kin Rewards Engine (KRE).

The KRE is a unique economic approach to growing value that puts users at the center and rewards app developers based on the number of Daily Active Spenders (DAS) in their app. App developers earn rewards for creating engaging experiences that encourage spending Kin in the app. This is similar to mining but with Kin, app companies use engaging experiences to mine Kin whereas with some other cryptocurrencies, computer power is used to mine the currency.

To further support our vision of building a truly connected Ecosystem of mutual value exchange and to increase Kin usage, we:

1. Shifted our focus to promoting Peer-to-Peer (P2P) transactions.
   Since we shifted our focus to user-to-user (P2P) spending, developers earn more from the KRE for every P2P spend than they do for spends from users to developers. This is why the KRE now dedicates a specific percentage of the daily reward ONLY to P2P spenders.
2. Introduced “tourism,” which rewards developers for getting users to transfer Kin to other apps in the Ecosystem. This reward algorithm rewards developers when a user in their app sends Kin to another app within the Ecosystem.

To summarize how the KRE currently works, app developers receive weekly payouts in Kin based on different reward algorithms:

1. The Spender Reward Algorithm: Developers are rewarded for every user who spends Kin inside their app. For every unique daily user who pays for a service or product or tips another user for leaving a comment, posting a gif, writing an article, or any other activity the apps decide on, the app developer gets a reward from the KRE. The daily reward amount is calculated according to the total number of DAS in the Ecosystem. Currently, the reward minimum is 1000 Kin per spender. More engaged users mean more KRE rewards. As we mentioned before, P2P spenders are worth more than regular spenders (user-to-developer). Thus, it’s up to developers to create engaging and rewarding experiences that keep users active and engaged with each other and coming back for more.
2. The Tourist Reward Algorithm: Developers get compensated when users send Kin from one app to another. This reward algorithm has been piloted over the past few weeks and is expected to be Ecosystem-wide soon. The Kin Ecosystem isn’t just about using Kin in individual apps. It’s about building an interactive community across all Ecosystem apps and encouraging “tourism.” Tourists are users who make cross-app Kin transfers and download new apps from the Ecosystem. Developers receive a reward for every user per day who transfers Kin out of their app and into another, and all apps stand to gain from the Ecosystem’s nearly 500K+ MAS.

The bottom line: The KRE promotes a healthy and connected Ecosystem that maximizes everyone’s ability to be fairly compensated for the value they create. It builds a fair online community where everyone stands to win from each other’s gain.

To see live payout information, take a look at kin.org/kre.