An Insight in the Kin Rewards Engine
The Kin Rewards Engine focuses on the incentives and behaviours of three types of people within the Kin ecosystem. Users, Developers and Investors. As documented in the Kin whitepaper, the objective is the creation of a ecosystem. This ecosystem comprises of digital-based applications and services. All of which need to appeal to the consumers whilst being open towards the developers.
To achieve this goal, Kin requires the economic alignment of partnered organisations, users, developers and investors to work together in the formation of the ecosystem. In this regard, this paper suggests monetary fulfilment, by use of the cryptocurrency Kin. The foundation can create incentives for every participant this way, therefore enabling them to integrate together within the ecosystem.
A Decentralised Eco-System Rewarding Everyone For Its Use
Users tend to adopt the digital-based services concerning the daily utilities. An example, digital applications such as messaging apps can offer value and get value from the ecosystem. Examples are, acquiring data within the application for various subjects. Fashion (Which dress looks better?), joining or hosting a clan within an online video game or being part of a VIP group. The Kin Ecosystem will ensure the fair compensation to every user for the value they contribute within the digital-based economy.
Developers are classed as individuals or organisations that are involved in the creation of services and applications in the ecosystem. Services could be made for gaming, photo sharing, fashion, live video streaming, and more. For a thriving ecosystem, developers must be endowed with the incentives for continuous innovation and the improvement of their respective products. They will need to ensure that they become useful, appealing and at the same time also be valuable to the users.
The primary objective of the Reward Engine is to ensure a economic incentive to the creators of these digital-based applications and services for the users to use within the ecosystem.
Investors are persons that have significant holdings of Kin, used purposely for investment. If you’re interested in becoming an investor, we have the perfect guide on how to buy Kin. Investors form the minority of the ecosystem. Their primary interest is the monetary value of kin. Investors are essential elements of the economy of Kin since they ensure a broader spread of currency and help the liquidity within the market. A lot of these investors are early adopters that are very much aligned towards the success of the project.
A Fair Algorithm to Incentivise Developers and Promote Healthy Competition
The Formula of the Kin Rewards Engine;
Generally, the Kin Rewards Engine will give out a daily reward towards the developers concerning the measurement of the Kin economy internally in every digital based service and application.
By allowing i to represent a digital service permissible for the rewards and Ri to be the reward daily that it will get through a given day, then;
Ri = TDR ⋅ SSEi ∕ TSE
Where TDR is the Total Daily Reward, SSE is the Size of the Service Economy, TSE is the Total Size of the Economy.
Kin is Not Just Any Cryptocurreny, The Kin Rewards Engine is the Future
The Kin rewards engine will be utilised over several forms of digital-based applications and services. The implantation of the reward engine will take place via Kins’ forked Stellar blockchain, capable of handling millions of transactions per day. The ethereum blockchain is still in use and in the near future there will be an atomic swap to exchange coins between chains.
The Kin Rewards Engine will ensure a release of Kin on a daily basis as part of the reward towards the developers. The developers will receive a Kin payout with direct proportionality to the transaction volumes they produce and their user base on their application or service. The more successful your application within the ecosystem the bigger percentage of the reward you receive.
The objective of the Kin Rewards Engine is to ensure the economic alignment of everyone involved. A decentralised ecosystem where everyone benefits. To achieve this goal, a reward algorithm is required, the kin rewards engine algorithm. Development of this algorithm will need time, it needs to be secure and to work as intended without misuse. The algorithm must be created carefully, if not the the whole project could be put in jeopardy.
Before the algorithm is put in place the Foundation will distribute the Kin accordingly and transparently. The objective is to ensure that the administration of the algorithm is automatic. At the same time also decentralised, thus assuring the developers a rational, transparent and valuable play surface for building and growing their respective digital-based applications and services.
Within our frequently asked questions page we have provided useful external links to aid with your research about Kin. If you have any further questions feel free to comment below.