Series: Guidex Theory – Reframing Digital Currencies as a Global Kinetic Energy Matrix
Chapter: 4 of 10 – Kinetic Index Score (KIS)
Author: Dr. Glen Brown
4.1 Why KIS Was Created
The Kinetic Index Score (KIS) is the quantitative engine of Guidex. It distils the four structural dimensions of the Guidex Matrix into a single score that can be used to:
- Rank assets within the digital universe;
- Classify them into tiers for portfolio construction;
- Guide capital allocation and risk weighting;
- Track how structural quality evolves through time.
KIS is not a price forecast; it is a quality signal that reflects how strongly an asset participates in the digital kinetic energy matrix.
4.2 The Five Inputs to KIS
KIS uses five scored inputs per asset:
- Ei: Energetic intensity and security;
- Ui: Utility and ecosystem usage;
- Ni: Narrative momentum;
- Vi: Volatility drag (penalty);
- Si: Entropy risk (penalty).
All five are typically scored on a 0–10 scale based on a blended process of quantitative indicators, on-chain metrics, and expert judgment.
4.3 Weighting Scheme & Normalised Components
KIS places more emphasis on positive, structural drivers than on penalties, while still recognising that volatility and entropy matter. A representative weighting scheme is:
w_E = 0.30
w_U = 0.30
w_N = 0.20
w_V = 0.10
w_S = 0.10
We then construct the weighted components:
E′i = w_E × Ei
U′i = w_U × Ui
N′i = w_N × Ni
V′i = w_V × Vi
S′i = w_S × Si
4.4 The KIS Formula
KIS is defined as:
KISi = (E′i × U′i × N′i) / (V′i + S′i)
The numerator rewards assets that combine strong energy, utility, and narrative. The denominator penalises high volatility and high entropy risk. This structure ensures that:
- An asset with high E, U, N but very high V and S will not dominate the portfolio;
- An asset with modest E, U, N but low V and S may be steady but will not be treated as a core reserve;
- Only assets that balance strength and stability achieve the highest KIS values.
4.5 Worked Examples
4.5.1 Bitcoin (BTC)
E = 10, U = 9, N = 10, V = 3, S = 2
E′ = 0.30 × 10 = 3.0
U′ = 0.30 × 9 = 2.7
N′ = 0.20 × 10 = 2.0
V′ = 0.10 × 3 = 0.3
S′ = 0.10 × 2 = 0.2
KISBTC = (3.0 × 2.7 × 2.0) / (0.3 + 0.2)
KISBTC = 16.2 / 0.5 = 32.40
BTC becomes the highest-ranked asset in the Guidex universe and anchors Tier 1.
4.5.2 Ethereum (ETH)
E = 8, U = 10, N = 9, V = 4, S = 3
E′ = 0.30 × 8 = 2.4
U′ = 0.30 × 10 = 3.0
N′ = 0.20 × 9 = 1.8
V′ = 0.10 × 4 = 0.4
S′ = 0.10 × 3 = 0.3
KISETH = (2.4 × 3.0 × 1.8) / (0.4 + 0.3)
KISETH = 12.96 / 0.7 ≈ 18.51
ETH emerges as a high-quality programmable reserve asset, still below BTC in energetic dominance but strongly positioned within Tier 1.
4.5.3 Solana (SOL)
E = 7, U = 9, N = 9, V = 6, S = 4
E′ = 0.30 × 7 = 2.1
U′ = 0.30 × 9 = 2.7
N′ = 0.20 × 9 = 1.8
V′ = 0.10 × 6 = 0.6
S′ = 0.10 × 4 = 0.4
KISSOL = (2.1 × 2.7 × 1.8) / (0.6 + 0.4)
KISSOL = 10.206 / 1.0 ≈ 10.21
SOL is powerful but more volatile and structurally fragile than BTC or ETH. It still qualifies as a strong Tier 1 or Tier 2 asset, but with tighter risk controls.
4.5.4 Dogecoin (DOGE)
E = 3, U = 4, N = 9, V = 9, S = 6
E′ = 0.30 × 3 = 0.9
U′ = 0.30 × 4 = 1.2
N′ = 0.20 × 9 = 1.8
V′ = 0.10 × 9 = 0.9
S′ = 0.10 × 6 = 0.6
KISDOGE = (0.9 × 1.2 × 1.8) / (0.9 + 0.6)
KISDOGE = 1.944 / 1.5 ≈ 1.296
DOGE’s narrative power is undeniable, but structurally it is weak and highly entropic, so it is treated as a speculative Tier 4 asset.
4.6 Interpretation Bands
KIS values can be loosely interpreted as:
- KIS > 20: benchmark-quality energetic or programmable reserves;
- 10–20: strong core or rotational assets;
- 5–10: peripheral assets with selective use;
- < 5: speculative, high-entropy tokens with tightly controlled exposure.