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How Does The Kinesis Money Velocity Yield Work?

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Discover how the Velocity Yield in the Kinesis ecosystem rewards users with fully allocated gold and silver based on their transactional activities with Kinesis currencies, Kau and KAG. Learn about this rewarding system’s incentives, calculations, and unique benefits.

In the dynamic world of digital currencies and precious metals, the Kinesis ecosystem stands out by combining the benefits of blockchain technology with the intrinsic value of physical assets. One of the most compelling features of this ecosystem is the Velocity Yield, a reward mechanism that incentivizes users to spend actively and trade Kinesis currencies—Kau (gold) and KAG (silver). By engaging in these activities, users can earn monthly returns in fully allocated gold and silver, making their participation in the Kinesis ecosystem rewarding and financially beneficial.

Velocity Yield: An Introduction

The Velocity Yield concept is central to the Kinesis ecosystem. It is a financial incentive to encourage users to spend and trade Kinesis currencies. Unlike traditional reward systems that offer points or credits, the Velocity Yield provides returns in physical gold and silver. This approach enhances users’ value proposition and aligns with Kinesis’s foundational principles—stability and value preservation through precious metals.

Incentives Behind Velocity Yield

The primary incentive behind the Velocity Yield is to stimulate economic activity within the Kinesis ecosystem. By rewarding users for their transactional activities, Kinesis ensures that its digital currencies, Kau and KAG, are actively used rather than merely held as speculative assets. This increased usage helps to maintain liquidity and fosters a vibrant trading environment, benefiting all participants.

How Rewards Are Calculated

The Velocity Yield program’s reward calculation is straightforward yet effective. Each user’s transactional activity—spending or trading Kinesis currencies—is monitored and recorded monthly. At the end of each month, the total activity is assessed, and a portion of the Master Fee pool is allocated as rewards. Specifically, the Velocity Yield accounts for 10% of this pool, ensuring active participants receive a fair share of the accumulated fees.

Monthly Distribution of Rewards

One of the Velocity Yield’s appealing aspects is the regularity and transparency of the reward distribution. Every month, users receive their returns directly into their Kinesis accounts. These returns are in the form of fully allocated physical gold and silver, which means that users own actual precious metals rather than mere digital representations. This monthly distribution provides a steady income stream and reinforces the tangible value of the rewards.

The Role of the Master Fee Pool

The Master Fee pool is a critical component of the Kinesis ecosystem. It comprises the fees collected from various transactions conducted using Kinesis currencies. By allocating 10% of this pool to the Velocity Yield, Kinesis ensures that a significant portion of the transactional fees is returned to the active participants. This redistribution model promotes fairness and encourages continuous engagement within the ecosystem.

Calculating Activity for Rewards

The calculation of each user’s share of the Velocity Yield is based on their relative activity compared to the overall activity within the ecosystem. This means that users who engage more frequently in spending and trading Kinesis currencies are likely to receive a higher proportion of the yield. This proportional approach ensures that rewards are aligned with each user’s contribution to the ecosystem’s liquidity and overall activity.

Spending and Trading: Keys to Higher Rewards

Users must spend actively and trade Kinesis currencies to maximize their share of the Velocity Yield. The more transactions a user conducts, the higher their activity level and, consequently, the greater their share of the monthly rewards. This mechanism not only incentivizes individual users but also boosts the overall transaction volume within the Kinesis ecosystem, creating a positive feedback loop of activity and reward.

Example Calculation: Tim, Sarah, and Owen

To illustrate how the Velocity Yield works, consider the example of three Kinesis users: Tim, Sarah, and Owen. Suppose Tim spends 100 Kau, Sarah spends 150 Kau, and Owen spends 50 Kau monthly. The total spending activity is 300 Kau. Tim’s share of the total activity is 33.3%, Sarah’s is 50%, and Owen’s is 16.7%. If the total Velocity Yield for the month is 10 ounces of gold, Tim would receive 3.33 ounces, Sarah would get 5 ounces, and Owen would receive 1.67 ounces. This example demonstrates how individual spending impacts the distribution of rewards.

A Unique Return in the Digital Currency Space

The Velocity Yield offers a unique return that sets it apart from other reward systems in the digital currency space. By providing returns in the form of fully allocated physical gold and silver, Kinesis adds a layer of value and security unmatched by traditional digital currencies. This unique return enhances the attractiveness of Kinesis currencies and provides users with tangible, stable assets that can serve as a hedge against economic volatility.

Fully Allocated Gold and Silver Payments

A significant advantage of the Velocity Yield is that the rewards are paid in fully allocated physical gold and silver. This means that users receive ownership of precious metals stored securely and managed by Kinesis. The fully allocated nature of these payments ensures that users have a direct claim over the gold and silver, providing an added layer of security and trust.

Monthly Distribution: A Consistent Income Stream

The monthly distribution of the Velocity Yield rewards offers users a consistent and reliable income stream. This regularity makes the rewards more predictable and helps users plan their financial activities more effectively. Knowing they will receive monthly returns encourages users to remain active in the Kinesis ecosystem, further driving transactional volume and liquidity.

Conclusion

The Velocity Yield is a cornerstone of the Kinesis ecosystem, designed to incentivize spending and trading of Kinesis currencies by offering monthly returns in fully allocated gold and silver. By accounting for 10% of the Master Fee pool, the Velocity Yield ensures that active participants are rewarded somewhat based on their transactional activities. This innovative reward system enhances the value of Kinesis currencies and promotes a healthy, active trading environment. The Velocity Yield offers a unique and desirable proposition for users looking to combine the benefits of digital currencies with the stability of precious metals.

FAQs

What is the Velocity Yield? The Velocity Yield is a reward mechanism in the Kinesis ecosystem that provides users with monthly returns in fully allocated gold and silver based on their spending and trading activities with Kinesis currencies, Kau (gold) and KAG (silver).

How are the Velocity Yield rewards calculated? Rewards are calculated based on users’ total transactional activity each month. The more a user spends or trades Kinesis currencies, the higher their share of the 10% allocated from the Master Fee pool.

When are the rewards distributed? The Velocity Yield rewards are distributed monthly directly into users’ Kinesis accounts.

What makes the Velocity Yield unique? The Velocity Yield is unique because it offers returns in the form of fully allocated physical gold and silver, providing users with tangible assets rather than digital credits or points.

Can I increase my share of the Velocity Yield? Yes, users can increase their share of the Velocity Yield by spending more and trading more with Kinesis currencies. Higher transactional volume leads to a more significant proportion of the monthly rewards.

Is the gold and silver I receive indeed allocated to me? Yes, the gold and silver received through the Velocity Yield are fully allocated, meaning they are physically owned by the user and stored securely by Kinesis.

What is the Master Fee pool? It is a collection of fees generated from transactions conducted with Kinesis currencies. Ten percent of this pool is allocated to the Velocity Yield to reward users based on their transactional activities.

How does the Velocity Yield promote activity in the Kinesis ecosystem? By offering tangible rewards for spending and trading Kinesis currencies, the Velocity Yield encourages users to be more active, increasing liquidity and transactional volume within the ecosystem.

What happens if my activity decreases? If a user’s activity decreases, their share of the Velocity Yield will correspondingly decrease since rewards are based on the proportion of total transactional activity each month.

Is there a minimum amount of activity required to earn rewards? While there is no strict minimum, users with higher spending and trading activity levels will receive more Velocity Yield than less active participants.

Kinesis Money Review – Learn & Earn: Lesson 10 – Velocity Yield

Introduction

The video “Learn & Earn: Lesson 10—Velocity Yield” explains the Velocity Yield within the Kinesis monetary system. The Velocity Yield is a mechanism that incentivizes spending and trading Kinesis currencies, specifically Kau (gold) and KAG (silver), by rewarding users with returns in fully allocated physical gold and silver.

What is Velocity Yield?

The Velocity Yield is a unique feature of the Kinesis monetary system designed to promote the active use of Kinesis currencies. Every time users buy, sell, or spend Kau or KAG, they are rewarded with a return in gold and silver. This reward system encourages users to engage in more transactions, thus increasing the overall velocity of money within the Kinesis ecosystem.

How Velocity Yield Works

The Velocity Yield is funded by 10% of the Master Fee pool. This pool is calculated and distributed monthly to users based on their spending and trading activities. The more a user spends or trades Kau and KAG, the higher their share of the Velocity Yield.

Example Calculation

To illustrate how the Velocity Yield is distributed, the video provides an example with three customers:

  • Tim spends 150 Kau on his Kinesis card.
  • Sarah sells 100 Kau.
  • Owen purchases 50 Kau.

If the Master Fee pool for that month is 1000 Kau, the Velocity Yield pool would be 10% of that amount, i.e., 100 Kau. Based on their activities, Tim, Sarah, and Owen’s shares of the Velocity Yield pool are calculated as follows:

  • Tim: 50% share (150 Kau spent)
  • Sarah: 33.33% share (100 Kau sold)
  • Owen: 16.67% share (50 Kau purchased)

Benefits of Velocity Yield

The Velocity Yield offers several advantages:

  1. Monthly Returns: Users receive monthly returns in fully allocated physical gold and silver.
  2. Encourages Activity: Incentivizing spending and trading increases the overall economic activity within the Kinesis system.
  3. Physical Assets: Returns are paid in physical assets, providing users with a tangible and valuable reward.

Conclusion

The Velocity Yield is a powerful tool within the Kinesis monetary system. It is designed to reward users for their transactional activities with returns in gold and silver. By encouraging the spending and trading of Kau and KAG, the Velocity Yield helps increase the velocity of money and promote economic activity within the Kinesis ecosystem.

Key Points

💡 Velocity Yield: Incentivizes spending and trading of Kinesis currencies (Kau and KAG).

💡 Rewards: Users receive returns in gold and silver based on their transactional activity.

💡 Distribution: Returns are paid directly into users’ accounts each month.

💡 Master Fee Pool: Velocity Yield accounts for 10% of this pool.

💡 Calculation: Monthly calculation based on spending and trading activity.

💡 Spending and Trading: The more a user spends or trades, the higher their share of the Velocity Yield.

💡 Example Calculation: Demonstrated with three customers, Tim, Sarah, and Owen, and their respective spending.

💡 Unique Return: Provides a unique return and other benefits of trading and spending precious metals.

💡 Allocated Gold and Silver: Payments are in fully allocated physical gold and silver.

💡 Monthly Distribution: Rewards are calculated and distributed every month.

Summary

  1. Introduction: The video introduces the Velocity Yield and its purpose in the Kinesis ecosystem.
  2. Incentives: The Velocity Yield incentivizes the spending and trading of Kinesis currencies, rewarding users with gold and silver.
  3. Rewards Explanation: Users receive returns based on their transactional activities, paid in fully allocated gold and silver.
  4. Monthly Distribution: The rewards are distributed monthly into users’ accounts.
  5. Master Fee Pool: The Velocity Yield accounts for 10% of the pool.
  6. Activity Calculation: Monthly calculations are based on users’ spending and trading activities.
  7. Higher Share: The more users spend or trade, the higher their share from the Master Fee pool.
  8. Example Scenario: An example is provided with three customers, showing how the Velocity Yield is divided based on their spending.
  9. Unique Return: The Velocity Yield offers an exceptional return and other benefits of trading and spending precious metals.
  10. Fully Allocated Payments: Payments are made monthly in fully allocated physical gold and silver.
Date: May 19, 2024
Partners: Kinesis Money