KVT Calculator

A step-by-step guide to understanding the value of a KVT.


HOW DOES IT WORK

Understanding the financials behind the Kinesis Velocity Token

Calculating the potential value of the KVT

Kinesis Velocity Token (KVT) holders receive a proportionate 20% share of the fees generated from the use of the Kinesis currencies: KAU and KAG. Each time the Kinesis currencies are sent from one wallet address to another, a 20% share of the 0.45% transaction fees are made available to the 300,000 KVTs created.

KVT holders can therefore consider the potential future success of the Kinesis Monetary System and what this would mean to KVT holders when evaluating what price they may be willing to pay per KVT. The greater the volume of transactions, the more fees available to KVT holders and the greater the potential KVT value.

This provides KVT holders with a method to approach the potential valuation of a KVT in a way that is more analogous to existing asset classes; such as by using a ‘fundamental’ value metric. Of course, there are many risks, uncertainties and other factors to consider when evaluating future performance.

Calculator

Calculate your KVT values using our calculator which take into account Kinesis projections as outlined in our Blueprint.

Our KVT valuation calculator allows you to determine your own potential future value for a KVT using your own settings for 1. market infiltration, 2. Kinesis currencies velocity and share of commercial centre transactions and 3. net present value (NPV) discount rate.

KEY documents:

You may consider the following panels when using our calculator, below:

1. Market infiltration
The extent to which you anticipate Kinesis will infiltrate the physical gold and physical silver markets.

2. Velocity
What percentage of the existing market cap transacted you anticipate Kinesis currencies to achieve and what percentage of transactions will take place on the Kinesis Commercial Centre.

3. NPV
The net present value discount rate that you determine most appropriate

Market size and infiltration (see Table 1)
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Kinesis Currency Revenues (see Table 2)
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Market and Financial Presets

We have provided some potential starting points in order to allow a better understanding of how changing values can affect the NPV. These pre-sets are in no way meant to be suggested valuations.

5-year projected annual income per KVT

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Year 1
Year 2
Year 3
Year 4
Year 5
NPV Calculation ?

Set the net present value discount rate that you determine most appropriate. This calculation takes the expected cash flows available to each KVT based on the assumptions above and discounts these by the selected discount rate to create the net present value.

Based on KVT purchase price - US$ 1,000.00
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NPV

US$

Kinesis Monetary System
Purchase your KVT here
Market Size and Infiltration (Table 1)

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YEAR 1/US$

YEAR 2/US$

YEAR 3/US$

YEAR 4/US$

YEAR 5/US$

Kinesis Currency Revenues (Table 2)

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Assumptions:

  • A fixed amount of gold production each year will be allocated to meet private investment needs.
  • Gold price assumes a year 1 level of USD1,300/oz and an increasing price over the next four years.
  • Gold market infiltration assumes a year 1 infiltration rate and an increase in infiltration of variable percentage per year thereafter.
  • Silver stored in custodian vaults and held by ETPs is used as a proxy for private investment demand.
  • Silver market assumes a 5% annual increase in silver stored in custodian vaults and held in ETPs.
  • Silver price assumes a year 1 price of USD 15.00 and an increasing price over the next four years.
  • Silver market infiltration assumes a year 1 infiltration rate and an increase in infiltration of variable percentage per year thereafter.

Data source: https://www.gold.org/about-gold/gold-supply/gold-mining/how-much-gold-has-been-mined

Data source: http://www.silverinstitute.org/wp-content/uploads/2017/08/WSS2017.pdf