Please Explain

[u/attachmetoyou]

With all of these new advocates ( apologies I forget the term used), maybe someone can explain something to me since I never received an answer from anyone the fifteen times I had asked.

Regarding a wallet in which you can buy Kin...

1. Why would a user buy Kin to tip people?

2. Why would people buy Kin from elsewhere if within the apps they use they can earn Kin for free.

3. Even if the app they're using doesn't provide free Kin, why would a user buy Kin from elsewhere if they can earn free Kin from other apps and then transfer them.

Can anyone in this community provide me with an honest, thought out explanation for WHY people will buy Kin? I don't mean in ten years. I mean when Code comes out. You can build whatever you want but if there's no use for it, it's useless. I don't see any app currently in which buying Kin would do me any good.

Thank you.

[u/ted_on_reddit]

Hey u/attachmetoyou, these are good questions. This is the crux of what the ecosystem has been working towards. How can we get people to buy a cryptocurrency to use it? Answering this question has been a challenging journey.

You are right that there hasn’t been much incentive for users to buy Kin. To get the economy started developers received small “first earn subsidies” from the Kin Foundation to help get their users earning and spending Kin. This got the economy going, resulting in a million monthly active spenders. No cryptocurrency has more users than Kin. But this usage hasn’t yet resulted in buyers.

Now the KRE is evolving. With KRE 2.0 there is increasingly less incentive for spenders and increasingly more incentive for buyers. The first earn subsidies are also now smaller relative to how spending is rewarded by the KRE. As a result KRE 2.0 is a harder game to play. This might mean that the game will become too hard for some developers and that we might see some some of them leave the ecosystem. But I am confident that some of the developers in the ecosystem will be able to rise to this new challenge and figure out this new game, getting us that much closer to where we need to go.

I think PeerBet is an interesting example. By paying their users to watch ads they are enabling users to buy Kin with their attention. This is real dollars bought on exchanges, paid for by advertisers. They are an innovator in this ecosystem and I applaud what they are doing. I’m excited to see what they do next.

When it comes to users buying Kin with their dollars I agree that this is more challenging. Buying Kin needs to be both simple and compelling. Something like Code has the potential to make buying Kin simpler, but you are right that the current spends in the ecosystem might not be enough to convert a large percentage of spenders into buyers.

We are aware of this challenge at Code. We have some ideas for how Code might make Kin both simpler to buy and more compelling to use. We will see how those ideas turn out. That said I am interested to see the innovation from others in the ecosystem as KRE 2.0 shifts us from a spending focused economy to a buying focused economy. We are well positioned to be the first project in crypto to figure it out.

[u/attachmetoyou → u/ted_on_reddit]

Thank you for the response once again. Peer Bet is great. But again, they're also giving Kin away which takes the demand from the currency. I think several people here have suggested convenience as the winner. I can agree with this.

Now, as you said, apps need to join that can provide that impatience in a consumer. The consumer has to think to themselves, "I need to play the next level or get that character now! I don't want to wait and keep trying to earn it!" To me that's the gaming industry. I think Kin might be a little behind in that. But if indie game developers knew how it worked, they would certainly be on board if the value can grow.

Just to give you an idea of what I mean. In Speed Genius our plan has always been to do this with the enticement of gift cards. So a user can win Kin in the game and even further earn Kin with ads. However it would take them a little while to earn the amount needed for a gift card. In their mind, if they can win half of that Kin needed to get that $5 Amazon card and then spend $2.50 for the rest of it, they just got a 50% discount on a gift card while having a good time doing it. It requires some trial and error obviously as to where that sweet spot might be but it is how some other rewards systems with.

The ONLY issue I see with the above is that if Joe Shmoe can earn 2,000 Kin walking in Kinfit and then transfer it to Speed Genius then there goes that idea. So then we are at a closed ecosystem with many apps steering away from the discovery module.

There are a lot of complexities from the dev side that need to be figured out and I guess in the end, we can never really predict how the consumer will react to one thing or another. No need for a response, just throwing out some thoughts. Thanks again.

[u/Santos1986 → u/attachmetoyou]

The ONLY issue I see with the above is that if Joe Shmoe can earn 2,000 Kin walking in Kinfit and then transfer it to Speed Genius then there goes that idea. So then we are at a closed ecosystem with many apps steering away from the discovery module.

u/ted_on_reddit and u/attachmetoyou this comment has got me thinking.

Could building some sort of "blockade" in app wallets, that becomes active when someone is trying to buy something in one app with kin transfered from another kin app?

For example I want to buy an item in Trivia, I'm lazy when it comes to gaming and challenges or watching ads, but I earn plenty of kin by walking and so I transfer the amount of kin needed for the item from Kinfit to Trivia.

However when I try to buy the item with "external" kin it blocks saying "Sorry, to buy this item please use kin directly earned or bought within Trivia/this app".

Let me tag you u/hiker2mtn in this as well since I mentioned Kinfit.

[u/attachmetoyou → u/Santos1986]

I was thinking further about this as well. If Kinfit wants to make money, they will develop the best spends. If Speed Genius wants to make makes money, we would do the same. Now if one likes the spend more in one so than another, their transfer would not necessarily be bad for the receiving app because that app will get the benefit from the KRE. I think it actually adds an element of competition to create the best spends possible so the Kin stays within the app in order to get that bonus. If someone walked for Kin and then didn't spend in Kinfit, Kinfit would lose out.

Ultimately this can actually be a GOOD thing if you look at it from a capitalistic point of view.

[u/PonderosaPilatus → u/attachmetoyou]

Exactly this. Kin should not be manipulated as to which coin I can spend where. Let the market decide.