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@ Daryn Cavalier
2023-04-27 20:08:50Kinesis
Introduction
Kinesis is a protocol designed to distribute Bitcoin amongst individuals (we will refer to as investors) based upon criteria of their choosing. It is up to the investors that comprise the network to self sort by digesting presented Projects. It is a network to facilitate the exchange of Bitcoin between investors based upon ideas. By introducing a Project and allowing distribution of funds to take place based upon public and selectively programmable rules executed by software we will harness the signal which is generated and transmitted when funds are transferred from one investor to another.
Investors will indicate their interest in the project with the amount of funds they are willing to supply to the project and the frequency of which those funds are sent.
Funds will be redistributed to the investors who have also expressed interest in the project (via the direct supply of funds). These funds will be distributed based upon the amount of funds that have been supplied by the investor. Each investor will own a percentage of the Project and that percentage is determined by the amount of funds contributed to the total amount of funds the Project has accumulated. Each investor will receive a percentage of the distribution payment equivalent to the percentage owned of the Project by the investor.
This will create a community or network of individuals united by the ideals or goals of the Project. Individuals that have expressed and demonstrated their willingness to support the Project by providing funds to it.
Due to distributive nature, wealth of the project is not * Static * Centralized
This is opposed to the traditional model where wealth is held centrally and statically in an account owned by the firm.
The wealth of the project lies in sovereign control of the investors who are actively choosing to support the Project.
The wealth of the project is signaled by the amount of circulatory transactions contained within it.
As investors are paid equivalent to the percentage in which they have contributed the incentive is to continually provide funds to the project. We can assume that the investor has interest in the Project and a desire for it to succeed. We can also assume that the investor would want to increase the amount of the Distribution Payments they receive by increasing the amount they have contributed to the Project.
This is an exchange of funds not an expenditure of funds, although it is unlikely that an investor would receive a positive net gain from most Projects. In Projects that would yield a negative net income the loss to the investor would have been consumed by the needs of the Project, regardless of whether the Project is determined to have been a success or failure.
Bitcoin represents true wealth and the willingness to part with a hard money is a True, honest, and accurate representation of one's personal values. This is also NOT without risk. Distribution payments are not guaranteed nor is success of the Project.
Anticipated results
Network Effect
Because the distribution payments are only received by other investors who have also decided to provide funds to the project it can be assumed that fellow investors are serious and interested in the project. The amount of circulatory transactions contained in a project is also a signal to potential investors of the strength of the project. Due to the nature of Bitcoin and the fact that these circulatory transactions are initiated by investors making a decision to “opt in” this signal is pure and unadulterated, it is also responding to the present moment similar to how a living organism is responding to its environment. Therefore, not only is this signal pure and unadulterated, it can be seen as a measurement of overall health of the Project.
Generating a pure, unadulterated, real-time, health signal/measurement of the Project will provide a novel and information dense metric to which there is nothing we can compare in our current economy.
This signal will make it easy for market actors to decide if a project is something they are interested in and would like to become an investor of. It is likely that most Projects would leave all account balances open to public view. Full transparency, aligned with specifically stated objectives and goals.
Distributed and Decentralized Wealth
The existence of the Escrow Account makes it possible for centralized funding of a Project. However the amount held in escrow is determined by the project creator or consensus vote of the investors. It is in the best interest of the project and the investors to hold as little as possible and only what is necessary within the Escrow Account. The amount of funds supplied to the Distribution Account is corollary to the strength of signal the Project is able to provide to the market thus potential investors.
The greater the amount allocated to the Distribution Account the greater the wealth of the project is decentralized as the wealth of the project is held in the sovereign control of each investor. The survival of the Project is dependent upon the continued supply of funds from the investors. We can assume that investors will only continue to opt in and provide funds if the Project continues to offer value.
Account Explanation
Genesis Account
The Genesis account will not hold any funds. The Genesis Account is for record keeping. Each individual that pays into the project first pays into the Genesis Account, those funds are then immediately moved into a different account (Escrow or Distribution).
The Genesis Account serves several purposes * It publicly shows the total amount invested into the Project. * It provides a total in which to create distributed ownership of the Project.
Investors will contribute funds to the Genesis Account. The percentage of the amount contributed relative to the total amount of the Genesis Account will become equivalent to the percentage of ownership the investor is awarded.
Seeing how the Genesis Account will not hold actual funds the number represented in the Genesis Account will NOT have value. This number will behave more like a receipt. It will reflect the amount purchased and indicate the ownership percentage of the project. Distribution Account
The Distribution Account is a holding place for funds that belong to the Project. The account will execute “Distribution Payments” to each investor based upon the amount of the project they own according to the percentage of wealth they have contributed to the Genesis Account.
These Distribution Payments will be programmed first by the creator of the project and can later be modified by consensus voting from members of the project.
Distribution Payments can be executed based upon a number of criteria Time - Payments are made every (x) days or every (x) months. Amount - Payments are made each time the Distribution Account reaches (X) wealth
Escrow Account
Certain projects will require funds to complete. A Project can create an Escrow Account to hold funds for whatever desire or necessity the Project dictates. As money comes in from investors a certain portion of funds can be directed to the Escrow Account until an agreed upon amount is reached, at which point any surplus is deposited into the Distribution Account.
The Escrow Account can have various rules. For example a rule could be created that makes the Escrow Account a multisig account and requires the signatures of all investors that own 10% of the project in order to spend funds from the Escrow Account.
Project Application
The criteria for a project can be anything, an idea, a business, or even a law or policy.
A project is proposed by an individual. The underlying point and explanation of the project will be explained using documents, graphs, etc. and using a Nostr like protocol the information will be posted and distributed to the public where investors can take interest and begin sending funds.
I want to create a bike path from point A to point B within my local community.
Hello,
I'd like to propose a project for the completion of a bike path that begins at (x) and ends at (y). I have received several estimates from the following contractors (A,B,C,D) and estimated cost of the project is 10,000.
Escrow Account Rules and Limitations Escrow will begin after Distribution Payments of 125% of estimated cost are executed (10,250) Escrow will accumulate at a rate of 50% of contributed funds, with the remaining 50% going to Distribution. If 10,000 is not reached by date (x) the project will be terminated and funds returned to originating wallets based upon ownership percentage. Expenditure of Escrow funds will require signatures from each investor owning 10% or more of the project.
Distribution Account Rules Distribution Payment will be executed once the Distribution Account holds 2,000. Distribution payments will be paid based on ownership percentage of the Project based upon how much each investor has contributed to the Genesis Account.
Other Rules and Limitations Project alteration proposals can require (x%) Project alterations can be decided by consensus voting, ⅞ for example Votes would be equivalent to ownership percentage Participation in the project is imperative. If an investor fails to cast a vote or participate in a required way their ownership percentage is destroyed and also removed from the Genesis Account. Thus increasing ownership percentage of all other investors.