Kinesis Yields: Where Does The Money Come From?

In order to reward users of the Kinesis Monetary System for taking part in a monetary system that uses sound money as currency, more than 50% of Kinesis earnings is returned to their users as yields.

On the Kinesis blockchain – currently a fork of the Stellar Network – each currency transfer costs either 0.45% or 0.22% of the total transaction volume. We refer to it as a transaction fee.

Every transaction fee is collected and deposited into a fund known as Master Fee Pool. The MFP is the source which Kinesis yields are paid out from.

The amount of Kinesis yields paid out monthly is proportional to the transactional volume within the system:

• It depend on money velocity rather than on capital inflows (i.e. Kinesis’ yield system is not a Ponzi scheme).
• It depends on financial and economic growth rather than on financial obligation (i.e. Kinesis’ yield system is not debt based).

Rather than being a perk provided by Kinesis to entice new users, the Kinesis yield mechanism is designed to encourage the use of sound money: with it Kinesis has devised a method to encourage individuals to use gold and silver not just as a store of wealth (i.e., as an investment) but also as a means of exchange (i.e., as money).