Doug Turner

30th June 2021

Kinesis is excited to announce the historic launch of the Kinesis yield engine.

In a monumental step forward for the Kinesis Monetary system, we are delighted to announce that the Kinesis yield engine is now online.

The yield engine launch represents a historic moment for both Kinesis and the precious metals industry as a whole, offering a yield on precious metals for the first time in economic history.

Industry-first yield on gold and silver

Historically, one of the most significant stumbling blocks in precious metals investment has been the lack of yield. This, coupled with costly storage fees, with banks charging as much as 1.5% annually, has hindered investment in some of the most reliable stores of value in economic history – gold and silver.

In an industry first, Kinesis now proudly provides a reliable and perpetual yield on fully allocated precious metals, which are securely held within world-class vaults, without charge. This allows Kinesis system participants to not only earn a yield on their gold and silver, but also avoid the usual charges associated with owning and investing in them.

This represents a true paradigm shift in the traditional economic model for precious metals and an evolutionary step for Kinesis currencies.

How is this possible?

Kinesis set out to revolutionise the industry and the launch of the yield engine represents the culmination of years of hard work and technological innovation, with Kinesis now perfectly poised to usher in a new era in precious metals.

Traditionally, the profit model used by bullion dealers relies heavily on spread mark-up, along with bullion storage and insurance fees. Kinesis uses the transaction fees from every single transaction in the system to pay for the vaulting and security infrastructure for all Kinesis Monetary System participants.

We are able to offer Kinesis users chargeless storage on their precious metal holdings, by utilising the robust vaulting network of its parent company, ABX. Additionally, a share of Kinesis global transaction fee revenue is allocated to cover vaulting costs.

Simply using the Kinesis system effectuates free storage for all system participants, removing barriers from entry in precious metals holdings. Kinesis believes in an ethical, honest system, which rewards users by giving back over half of its transaction fee revenue. This covers the costs for our community whilst also providing a significant yield; supporting a viable alternative to fiat as an everyday currency.

Through sharing our profits, we have been able to create an incentive to transact gold and silver, crucial for realising our vision of bringing back the use of precious metals as currency in the global economy. The first aspect of the historic yield engine to be brought online is the Minter’s yield.

The Minter’s yield

The Minter’s yield rewards Kinesis users for minting and using KAU and KAG. As the currency created travels through the Kinesis system, minters are paid a monthly yield in gold and silver – forever. This will represent a payout for the 70,000+ users who have supported the Kinesis Monetary System with their engagement and participation over the past few years.

The Minter’s yield is based on the velocity of Kinesis currencies, KAU and KAG. Velocity simply means the transaction fees that are accumulated from the sending, spending, and trading of KAU and KAG. All the fees are accumulated and redistributed back to the users, where the higher volume of transactions is equal to higher yields for the minters. This highly incentivizes the use of the currency. You can discover more about the power of minting, here.

What happens next?

Now that the yield engine dashboard component is live, we will begin a week-long period allowing for any remaining wallet address linking. Once this is completed on 7th July, the first Minter’s yield will be paid to all eligible minters for all retroactive minting between April 2019 and the 30th of June 2021, in a single payment.

address linking external wallet minter's yield rollout pay-out

Address Linking

If you have only ever minted to the Kinesis Money platform via the Mint, your account should automatically be linked and no further action would be required.

Although the vast majority of Kinesis users will be required to take no action, we still urge all participants to check that all addresses previously minted to are listed in the address linking widget on the platform. Those who have previously minted to an external wallet, such as a Kinesis wallet or CoolWallet, will be required to prove ownership of that wallet by linking it.

We would like to emphasise that all unlisted addresses will not receive a yield. This is why it is imperative that all users follow the steps to ensure all addresses previously minted to are linked and listed. A comprehensive linking guide can be found here.

user interface kinesis dashboard exchange kinesis money system

User Interface

From July 1st, the all-new yields tab will allow system participants to keep track of their yield eligibility, as well as monitor the total KAU and KAG in circulation and total Master Fee Pool amassed across the entire Kinesis system.

Currently, the ‘Master Fee Pool’ chart on the Yields dashboard displays the fee pool allocated for all 5 Kinesis yields up until May 30th, with the figures for the month of June to be updated tomorrow, 1st July.

On July 7th, when the Minter’s yield is paid out, Kinesis users will be able to receive and track their Minter’s yield payments, paid monthly in gold and silver, through the Kinesis Money platform. On this date, the main section of the Yields tab will display ‘Total yields received to date’, individually and accumulatively, as well as a more detailed graphic breakdown of the Minter’s yield. As the remaining yield payments go live, the respective graphic displays will be brought online for each yield.

This yield dashboard feature, currently available on the Kinesis Money platform, is only the first iteration, with more exciting and extensive features set to be added in coming updates throughout the year.

How does the Minter’s Yield Work?

The Minter’s yield is based on the velocity of the currency and derived from a perpetual share of transaction fees from the KAU or KAG the minter created in proportion to all KAU and KAG in existence.

Because a minter converts another currency into digitalised physical bullion, that minter has brought KAU and KAG into existence for the first time. Once that user then sends, spends or trades them, they have now contributed KAU and KAG currencies into the Kinesis Monetary System.

They are rewarded with a 5% share of all Kinesis transaction fees proportional to the amount they have minted and spent compared with the total KAU and KAG in existence.

The more currency that is minted and sent into the system by the minter, the greater the recurring financial reward will be.

5% of the Kinesis Master Fee pool is allocated to the Minter’s Yield fee pool. This 5% is then distributed among all users who are eligible for the Minter’s yield. Read here for an in depth breakdown of how the yield is calculated.

Am I eligible for the Minter’s yield?

Minting is an active yield, meaning for minted currency to be eligible to receive a yield it must be transacted (either by sending, spending, or trading). See our helpful step-by-step guide – here.

What’s next for the Kinesis users?

The new Kinesis website has been developed over the course of the last 3 months and will be launched tomorrow in-line with the roadmap set out earlier in the year. The top-to-bottom website redesign and restructuring, positions our brand tailored towards our core target segments and enables a far greater assimilation of the Kinesis Monetary System.

Extensive research and development has gone into the UX (user experience) flow which has been incorporated into all design considerations in order to provide a seamless and engaging user experience.

Now that the first yield engine has been released, we will monitor progress to ensure a smooth launch and provide support to eligible minters. Subsequent yields will be brought online and rolled out throughout the year, starting with the Holder’s yield.

The Holder’s yield offers users a passive yield on every single gram of gold and silver held with Kinesis. The yield is paid monthly in gold (KAU) and silver (KAG) for as long as users hold their precious metals with us. A purely passive yield, the Holder’s yield has been designed to compete with bank deposits, stock dividend yields and rental property returns. Kinesis holders simply enjoy the benefits of the economic activity of the system, while holding their precious metals in our secure vaults, with no storage fees.

Keep an eye on your inbox for more upcoming news about what is set to be a historic year for Kinesis and all system participants.

Find out everything you need to know about receiving your Minter’s yield.

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