All yields are paid from the Master Fee Pool, which is built up throughout the month, from:
- transaction fees (0.45%) generated from transfers of KAU and KAG
- KAU and KAG minting fees (0.45%)
- all Trade transaction fees at the Kinesis Exchange (0.22%).
Kinesis Holders - as a group - are allocated 15% of the Master Fee Pool.
There are separate fee pools for KAU and KAG.
In order to be fairly distributed to participants, Holders yield will be calculated on a daily basis, then aggregated into a monthly payment.
The description below is for KAU only. A separate calculation will be done for KAG, using the exact same rules.
The end of each day is 23:59 UTC. At this point, a snapshot of each qualifying Kinesis Money account's KAU** balance will be taken along with the KAU held by all other eligible* holders of Kinesis.
This will be repeated each day and the number of eligible KAU will be aggregated for all days of the month for each eligible user.
Each user will then get their share of the fee pool based on their aggregated KAU vs everyone's aggregated KAU.
Let's say that you have 100 KAU and your balance remains at that for the whole of a 30 day month.
This means that your holder's eligible amount will be (30 days x 100 KAU=) 3,000 KAU.
If the total holder's eligible amount is 30,000,000 then your percentage claim of holders yield would be 0.01%
If the Holder's fee pool was 2,000 KAU, then your Holder's yield for the month would be 0.2 KAU.
The actual amount of coins in circulation may be higher since some accounts might be blacklisted or not fully KYC verified, which makes them ineligible. To be fair to all Kinesis Money account holders who are eligible, Kinesis will calculate their holding proportion based on the other qualified holder's quantity.
* In order to become eligible for the holder’s Yield, the account holder must be fully ID-verified through the KYC process (tier 3) and cannot be blacklisted.
** What is the Kinesis Money account's KAU balance?
A Kinesis Money account's KAU balance will be the sum of the KAU that they have in their Kinesis Money KAU Account, plus any KAU held in the integrated wallet and in any external wallets that are linked to their Kinesis Money account.