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How Does The Kinesis Money Holders Yield Work?

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Learn how the Holder’s Yield in the Kinesis monetary system provides passive income to those holding KAU (gold) or KAG (silver). Discover its calculation, eligibility, and benefits.

In the evolving world of digital currencies, the Kinesis monetary system introduces a unique concept known as the Holder’s Yield. This system rewards users who hold KAU (gold) or KAG (silver) without transacting with them, offering a passive income derived from transaction fees. Understanding how this yield is calculated, who is eligible, and the benefits it provides can significantly enhance one’s financial strategy within the Kinesis ecosystem.

What is the Holder’s Yield?

The Holder’s Yield is a reward mechanism within the Kinesis monetary system designed to incentivize users to hold KAU (gold) or KAG (silver) in their accounts. It distributes a portion of the transaction fees collected within the system to these holders, providing them with a passive income stream.

How is the Holder’s Yield Calculated?

The calculation of the Holder’s Yield is based on the proportion of KAU or KAG a user holds relative to the total amount of these metals in the system. Here’s a step-by-step breakdown:

  1. Fee Collection: Kinesis collects fees from various activities, including spending KAU or KAG with the Kinesis card, sending these metals to other accounts, and transactions on the Kinesis Exchange.
  2. Fee Pool Allocation: The Holder’s Yield pool allocates 15% of the total collected fees.
  3. Yield Distribution: The yield is distributed to eligible holders based on their share of the total metal pool.

For instance, if the total fees collected in a month amount to $100,000, $15,000 (15%) would be allocated to the Holder’s Yield pool. If Susan holds 10% of the total KAU in the system, she will receive 10% of the $15,000, equating to $1,500 as her monthly yield.

Who is Eligible for Holder’s Yield?

Eligibility for receiving the Holder’s Yield is straightforward: any user who holds KAU or KAG within the Kinesis system qualifies. However, the yield decreases if the holder transacts with their KAU or KAG during the yield period. The more static one’s holdings, the higher their yield will be.

Benefits of Holder’s Yield

The Holder’s Yield offers several benefits to KAU and KAG holders:

Passive Income

Holders earn a yield without needing to manage their assets actively. This passive income is especially attractive to those looking to diversify their revenue streams.

Counteracting Inflation

In a world where fiat currencies are often subject to inflation, holding and earning yields on KAU or KAG helps preserve and grow one’s wealth. The yield provides an additional layer of protection against inflationary pressures.

Zero Storage Fees

KAU and KAG, held within the Kinesis system, are stored in a vault with zero storage fees. This feature enhances the net return on the assets held, making it more lucrative for investors.

Yield Distribution

The yield is distributed monthly, providing regular income. This consistent payout schedule helps holders better plan their finances.

Potential Price Appreciation

Apart from the yield, holders can also benefit from the potential price appreciation of gold and silver. This dual benefit makes holding KAU and KAG within the Kinesis system a compelling investment strategy.

Example of Holder’s Yield Calculation

Let’s delve deeper into an example to understand how the Holder’s Yield works:

Susan’s Example

Susan owns 100 KAU, and the total KAU in the system is 1,000 KAU. Therefore, Susan holds 10% of the total KAU. If the total fees collected in a month are $100,000, 15% ($15,000) are allocated to the Holder’s Yield pool. Susan’s monthly yield would be 10% of $15,000, equating to $1,500.

Dynamic Yields

It’s important to note that the Holder’s Yield is dynamic. If Susan decides to transact with her KAU, her yield will decrease correspondingly. Conversely, if she maintains her holdings, she will benefit from a higher yield.

Fee Allocation in Kinesis

Understanding how fees are allocated within the Kinesis system is crucial for comprehending the Holder’s Yield. Here’s a detailed breakdown:

Fee Sources

  1. Kinesis Card Transactions: Fees are collected whenever KAU or KAG is spent using the Kinesis card.
  2. Transfers: Sending KAU or KAG to other accounts incurs fees.
  3. Exchange Transactions: Trading KAU or KAG on the Kinesis Exchange generates fees.

Allocation of Fees

Out of the total fees collected:

  • 15% is allocated to the Holder’s Yield pool.
  • 5% goes to the Minter’s Yield pool, rewarding those who mint new KAU or KAG.
  • The remaining fees are distributed among various operational and development expenses.

Impact of Transactions on Holder’s Yield

Transacting with KAU or KAG has a direct impact on the Holder’s Yield:

Decreasing Yield

When a holder transacts with their KAU or KAG, the amount of these metals they hold decreases. Since the Holder’s Yield is calculated based on the proportion of total holdings, transacting reduces this proportion, decreasing the yield.

Increasing Minters’ Yield

Conversely, the Minters’ Yield, which rewards those who mint new KAU or KAG, increases as more transactions occur. This dynamic balance ensures that both holding and transacting within the system have rewards.

Benefits of Holding KAU or KAG

Holding KAU or KAG within the Kinesis system offers multiple advantages:

Inflation Countermeasure

With fiat currencies consistently devaluing, holding precious metals like gold and silver provides a hedge against inflation. The Holder’s Yield further enhances this benefit by providing a regular income stream.

Security and Storage

Kinesis offers secure vault storage for KAU and KAG with zero storage fees, ensuring holders can keep their assets safe without additional costs.

The yield on Top of Price Appreciation

In addition to the potential for price appreciation of gold and silver, holders benefit from the Holder’s Yield, creating a multi-faceted investment return.

Regular Income

The monthly distribution of the Holder’s Yield provides a regular income stream, aiding in financial planning and stability.

How to Maximize Holder’s Yield

To maximize the Holder’s Yield, consider the following strategies:

Minimize Transactions

Reducing the frequency of transactions with KAU or KAG helps maintain a higher proportion of holdings, thereby increasing the yield.

Consistent Holding

Maintaining a steady amount of KAU or KAG over time ensures a stable and potentially growing yield as transaction volumes and fees within the Kinesis system increase.

Monitor Yield Periods

Stay informed about the yield distribution periods and ensure your holdings are maximized to receive the highest possible yield.

Conclusion

The Holder’s Yield in the Kinesis monetary system offers a unique and attractive way to earn passive income. By holding KAU or KAG, users benefit from a portion of the transaction fees collected within the system. This monthly yield provides an additional revenue stream on top of the potential price appreciation of gold and silver. Understanding the dynamics of the Holder’s Yield, including its calculation, eligibility, and benefits, can help users maximize their returns within the Kinesis ecosystem.

FAQs

What is the Holder’s Yield in the Kinesis monetary system?

The Holder’s Yield is a passive income mechanism in the Kinesis system that rewards users for holding KAU (gold) or KAG (silver) without transacting. It is derived from a portion of the transaction fees collected within the system.

How is the Holder’s Yield calculated?

The Holder’s Yield is calculated based on the proportion of KAU or KAG a user holds relative to the total amount of these metals in the system. 15% of the transaction fees collected are allocated to the Holder’s Yield pool and distributed accordingly.

Who is eligible for the Holder’s Yield?

Any KAU or KAG user within the Kinesis system is eligible for the Holder’s Yield. The yield decreases if the holder transacts with their KAU or KAG during the yield period.

What are the benefits of the Holder’s Yield?

The benefits include:

  • Passive income.
  • Counteracting inflation.
  • Zero storage fees.
  • Regular monthly yield distribution.
  • The potential price appreciation of gold and silver.

How does transacting with KAU or KAG affect the Holder’s Yield?

Transacting with KAU or KAG reduces the amount held, decreasing the Holder’s Yield proportionately. More transactions increase the Minters’ Yield instead.

How often is the Holder’s Yield distributed?

The Holder’s Yield is distributed monthly based on the holder’s share of the total metal pool in the system.

Kinesis Money Review – Learn & Earn: Lesson 8 – Holders Yield

Introduction

The video “Learn & Earn: Lesson 8 – Holders Yield” introduces the concept of Holder’s Yield within the Kinesis monetary system. It explains how Kinesis allocates some transaction fees to reward users who hold KAU (gold) or KAG (silver) without actively transacting with them. This passive income mechanism encourages the long-term holding of precious metals, providing an additional income stream beyond the potential price appreciation of gold and silver.

Kinesis Fees and the Master Fee Pool

Kinesis collects fees from activities such as spending KAU or KAG with the Kinesis card, sending these metals to other accounts, and making transactions on the Kinesis Exchange. These collected fees are pooled into the Master Fee pool.

Allocation to the Holder’s Yield Pool

Fifteen percent of the total fees collected in the Master Fee pool are allocated to the Holder’s Yield pool. This allocation incentivizes users to hold their precious metals within the Kinesis system. The more KAU or KAG users have, the larger their share of the Holder’s Yield.

Passive Yield Explained

The Holder’s Yield is considered a passive yield. This means that once users purchase KAU or KAG, they can hold these metals without spending or transacting with them. The metals are stored in a vault with zero storage fees, allowing holders to earn a yield over time.

Example: Susan’s Yield

The video provides an example with a hypothetical user named Susan to illustrate how the Holder’s Yield works. Suppose the total amount of KAU purchased in the Kinesis system is 900 KAU, and Susan purchases 100 KAU. This brings the total metal pool to 1000 KAU (1 kilogram of gold). Since Susan owns 100 KAU out of the total 1000 KAU, she owns 10% of all the gold in the system. Therefore, she is entitled to 10% of the Holder’s Yield pool.

Yield Calculation and Distribution

The video recaps that 15% of all fees collected by Kinesis go into the Holder’s Yield pool. As Susan owns 10% of the total metal in the system, she receives 10% of the total Holder’s Yield pool for as long as she holds her KAU. If Susan decides to transfer, send, or spend any of her KAU, the portion of KAU moved out of the Holder’s Yield will be attributed to her Minters’ Yield, decreasing her Holder’s Yield proportionately.

Impact on Yield

When Susan transacts with her KAU, her Holder’s Yield decreases while her Minters’ Yield increases. This dynamic rewards users who keep their savings or investment money in gold and silver within the Kinesis system. The Holder’s Yield thus serves as a financial incentive to counteract inflation and provides a fee-sharing yield in addition to the price movement of gold and silver.

Benefits of Holder’s Yield

The Holder’s Yield mechanism rewards users for maintaining their investments in gold and silver. This yield, combined with the potential appreciation in the value of these metals, offers a compelling reason for users to participate in the Kinesis system. The passive income generated from the Holder’s Yield provides an effective hedge against inflation and contributes to the overall financial health of the users.

Conclusion

The Holder’s Yield in the Kinesis monetary system significantly benefits users who hold KAU or KAG. Kinesis incentivizes long-term holding of precious metals by allocating a portion of transaction fees to the Holder’s Yield pool. This passive yield rewards users for their investments and helps counteract inflation, making it a valuable addition to the Kinesis system.

Date: May 19, 2024
Partners: Kinesis Money
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