Table Of Contents
The Role of Yields within a new gold standard
The Kinesis Monetary System includes a fee-sharing mechanism that distributes a portion of transaction fees back to participants each month in the form of gold and silver. Known as the yield system, it draws from a small fee — typically around 0.45% — applied to buys, sells, sends, spends and trades involving its digital representations of physical gold and silver. Roughly 57% of these fees are returned through six distinct yields, an approach designed to encourage both holding and active use of precious metals.
Unlike traditional banking yields based on interest or debt, Kinesis yields come directly from platform activity. The more transactions occur, the larger the fee pool becomes, potentially increasing returns for participants. This structure aims to address a longstanding issue with precious metals: their tendency to sit idle as stores of value rather than circulate as currency.
Holder’s Yield: Rewarding Stability
The Holder’s Yield provides a passive return to anyone who simply keeps gold or silver in their Kinesis account. Allocated 15% of the master fee pool, it is distributed proportionally based on the amount and duration of holdings during the month.
In the context of building a new gold standard, this yield makes allocated precious metals more attractive as a form of savings. It offers a modest but ongoing return without storage fees or counterparty risk from lending, encouraging people to treat gold and silver as reliable long-term assets rather than purely speculative holdings.
Velocity Yield: Encouraging Circulation
The Velocity Yield rewards users for actively spending or trading their gold and silver. It targets transactions such as using the Kinesis Card for payments or executing trades on the exchange. This yield is paid based on the volume of qualifying activity, with the goal of increasing the speed at which metal-backed value changes hands.
For expanding precious metals as everyday currency, the Velocity Yield is central. Historical gold standards often struggled because physical metal was cumbersome for daily use. By rewarding spending and trading, this mechanism tries to create real monetary velocity — turning gold and silver into practical media of exchange that people are incentivised to use rather than hoard.
Minter’s Yield: Bringing New Metal into the System
The Minter’s Yield offers a perpetual return to those who introduce physical gold or silver into the platform through the minting process. Once activated by an initial transaction, this yield continues for as long as the minted amount remains in the system, drawing from its allocated share of fees.
This component supports the foundation of a gold standard by steadily increasing the supply of digital claims backed by verifiable physical metal. It attracts fresh bullion into circulation, helping the system grow its reserves while giving early contributors a lasting stake in the ecosystem’s activity.
KVT Yield: Aligning Long-Term Incentives
Holders of the limited-supply Kinesis Velocity Token (KVT) receive the largest single share — 20% — of the overall fee pool. With only 300,000 tokens in existence, this yield provides a proportional claim on the platform’s growth, paid monthly in gold and silver.
From the perspective of adoption, the KVT Yield rewards those who commit to the system’s success over time. It creates alignment between early supporters and the broader goal of building a functional monetary network, potentially drawing in participants who see value in scaling a metal-based alternative to fiat systems.
Referrer’s and Partner’s Yields: Supporting Network Growth
Smaller portions go to Referrer’s Yield, which compensates users for bringing in new participants whose activity generates fees, and Partner’s Yield, which benefits larger organisations or affiliates that integrate their networks with Kinesis.
These yields help expand reach by turning users and institutional partners into active promoters. In building wider acceptance of precious metals as currency, they facilitate organic growth and public-private collaborations, extending the system into new markets and user groups.
Can Yields Help Precious Metals Become Money Once More?
Taken together, the Kinesis yield system attempts to solve the velocity problem that has limited gold and silver in modern economies. By rewarding different types of participation — from passive holding to active spending and network building — it seeks to make precious metals more liquid and useful in daily financial life. Whether this model can meaningfully contribute to a revived gold standard will depend on sustained transaction growth and broader adoption. Yields fluctuate with overall activity and are not guaranteed, so participants typically review current figures directly on the platform.