When a transaction is made on the Kinesis network, a fee is taken.
This fee is divided up into various fee-sharing yields and distributed back to system users:
- Minters who create Kinesis currencies earn a yield on the KAU and KAG they create.
- Holders of Kinesis currencies earn a monthly yield simply for holding.
- Individuals who refer new users to Kinesis receive a return on their transactions.
- Individuals who trade or spend using a card, earn a yield on their transactions.
- KVT holders also receive a share of the overall transaction fees within the Kinesis system.
The Kinesis yield system has been developed to reward active and passive users of the Kinesis Monetary System. It is the Kinesis fee-sharing yield system in its entirety that defeats Gresham's law, a fundamental law of money that previously restricted the use of gold and silver as mainstream currency.
All on-chain transactions have execution fees associated with them that are added to the fee pool, which we refer to as the Master Fee Pool. In addition, trade execution fees from the Kinesis Exchange will be added to the Master Fee Pool.
These fees are in turn paid out proportionately, depending on your applicable yields. You can learn more about yields in this video, from our Learn & Earn series.