Kingsilver Stablecoins

Kingsilver protected stablecoins

In order for a currency to be adopted by the masses it has to have an intuitive sense of value. Everyone in the U.S knows the value of a $5 burger… but what if the burger cost 14,620 $KSL?

This is how we feel when we visit a country for the first time with a very different local currency to ours.

In Indonesia that $5 burger will set us back 71,120 IDR. When you first arrive you have no idea what the currency in your wallet is worth. It takes time to slowly become accustomed to the value of each denomination.

The currency we all want to use in our day-to-day lives is the currency we have grown up with: our local national currency.

British Pound Sterling, if you're British.

The U.S Dollar if your American.

The Indonesian Rupiah if you're Indonesian.

At a time in history where our local fiat currencies are losing value, however, there is a penalty to this comfort… but this discomfort won't be enough to motivate the world to switch to Kingsilver.

And since Kingsilver is designed to always appreciate in value, there is the penalty for spending it: no-one wants to spend an asset that they know is appreciating in value.

The solution are Kingsilver Protected Stablecoins (KPS): stablecoins that are pegged to the value of fiat currencies and backed by an over-collateralised pool of KSL, but whose owners are compensated with more KSL Stablecoins as the value of that currency falls.

By minting a PSC, let's say USD—which becomes USDK—you do not surrender, or exchange your KSL, instead you merely stake the KSL (an overcollateralised quantity) in order to mint the USDK. Your underlying KSL is always safe.

So if someone mints 10,000 USDK and then hyper-inflation halves the value of USD, an extra 10,000 USDK is minted and he would end up with 20,000 USDK. If he had held any other USD stablecoin the value of his holdings would have halved.

This makes PSCs the perfect mediums of exchange as they allow people to buy goods and services and receive payment in denominations that they intuitively understand, while at the same time having full confidence that the value of their money is protected by Kingsilver.

The more popular PSCs become, the more KSL has to be staked, and the more buoyant KSL becomes with progressively less selling pressure in the market.

For K-Coins to be viable, Kingsilver will first have to reach a certain level of adoption where the value of KSL has become relatively stable (increasing in value slowly) due to maturation along the Stability Curve.