I'm super jazzed about this project, so please don't take my question as criticism, but genuine curiosity. What you describe is KMD acting as a passthrough coin to secure the privacy of other coins, like BTC. I understand it can also be used directly, but if it does have a big role as a passthrough what gives the coin value in the long term. Will KMD act as fuel or be consumed for doing things in the larger ecosystem?
You will need to buy/hold KMD in many cases, like
- BTC private payment
- dPoW protection
- PAX fiat assets
All those create demand for KMD. Of course it can be used as money too. When we offer these services / apps many people will find KMD, and likely they will buy & hold some.
We are building a development framework / platform for blockchain applications. Those could / will use KMD to gain certain functionality, like a built in privacy features. For example, we are planning to develop a 'payroll' app that would allow international businesses pay their employees in fiat.
Like many things, also this Payroll app would require KMD. The idea is that the business could pay in BTC, and behind the scenes it would be turned into PAX fiat (BTC -> KMD -> PAX fiat). This creates demand for KMD, but it is also possible that at some point the business would start using KMD instead of BTC (to remove one extra hop).
At the very least, it is a lot cheaper to send private KMD transactions than it would to send private BTC transactions. While making a private BTC transaction there are many fees to pay & coin conversions to do.
These plans are not for the immediate future however. Our first priority is to get the EasyDEX & PAX1 online, then we move to InstantDEX & PAX2, and other things like Pangea, Jumblr, and Payroll app.
One of the least understood things however is how PAX works. It could end up being
the number one driver for KMD price. Let me explain.
If you want to convert your money to any PAX fiat you will have to first buy KMD and then lock that KMD inside PAX. In other words, the more used the PAX fiats are, the more wealth will be locked inside PAX.
-> less supply
-> more demand
However, don't get too excited as the initial PAX1 version will have some limits placed on it. With PAX2 we can remove those limitations as well as allow some advanced features such as shorting. PAX2 will effectively create a decentralized forex market.
With PAX1 we will have 40k exposure limit for the first 10 fiats, and 10k limit for the other 22 fiats. That means that, for example, the paxUSD is capped at $40,000 market cap.
Here were the main points I could think of right now.
If anyone wants to help KMD price, maybe they could join our Slack and start developing some other killer app with the help of our platform
