Table Of Contents

Rewarding the Expansion of Sound Money

The Kinesis Monetary System includes a mechanism called the Minter’s Yield that pays participants who create new Kinesis currency. The process resembles the way central banks issue money, except it operates in a decentralised setup backed by physical precious metals. When users mint new Kinesis gold (KAU) or Kinesis silver (KAG), they become eligible for a monthly yield paid in physical gold and silver. The same process also lets holders convert physical bullion into digital form through the Exchange Physical for Digital program.

Minting Kinesis Currencies

Kinesis currencies are created in the Kinesis Currency Mint by two routes. One is to deposit fiat currency or cryptocurrency, which is then converted into KAU or KAG. The other is the Exchange Physical for Digital process (EPD). Eligible physical gold and silver bullion is transferred into Kinesis vaults and converted into the corresponding digital currencies. Both routes give access to the system’s functions.

Eligibility Requirements

To qualify for the Minter’s Yield, users must complete Know Your Customer checks, including full identity verification. Accounts and any linked addresses must also be in good standing—neither suspended nor blacklisted.  

The minted currency must be placed into circulation. Three options are recognised. The first is to sell it on the Kinesis Exchange after transferring the units to a KYC-verified Kinesis account. The second is to spend it with the Kinesis Card for everyday transactions. The third is to transfer it directly to another Kinesis account or wallet; the recipient must be KYC-verified and an independent person or entity such as a friend, employee or third party.  

Monthly minting is not required to keep receiving the yield. Once currencies have been minted and activated, the account continues to receive a share of the Minter’s Yield Fee Pool each month based on that earlier activity. Further minting and activation in later months can raise the share.

Calculation of the Minter’s Yield

The Minter’s Yield is funded from fees generated inside the Kinesis system. Five percent of the Master Fee Pool is allocated to the Minter’s Yield Fee Pool and then distributed among eligible participants. Distribution is proportional: each user’s share depends on the amount they have minted and activated relative to the total activity of all minters. The exact sum therefore changes from month to month according to the fees collected and the individual’s relative contribution.