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Holder’s Yield

Real-World Assets • Bullion • Physical Collateral

passive income from holding tokenized precious metals

Holder’s Yield is a unique income-sharing model used in the Kinesis Monetary System, where users earn passive yield simply by holding tokenized precious metals such as KAU (gold) and KAG (silver) in their wallets. Unlike staking or farming, this yield is generated without locking up funds or taking on additional risk.

Use Case: By holding KAU or KAG in a Kinesis wallet, users earn real metal as yield — not fiat or inflation-prone rewards — enabling sound money to generate passive income.

Key Concepts:

  • Non-Custodial Earnings — No lockups, full liquidity, direct ownership of assets
  • Fee Redistribution — Yield comes from network transaction fees, not debt-based issuance
  • Kinesis Money — Ecosystem where Holder’s Yield is earned on tokenized metals
  • Ethical Yield Model — No lending, leverage, or centralized risk exposure
  • Velocity Yield — Complementary yield earned through spending activity
  • Redeemable Asset — KAU/KAG can be redeemed for physical bullion
  • Allocated Storage — Physical metal backing each token in insured vaults
  • Sound Money — Yield paid in hard assets, not inflating currency
  • Tokenized Gold — Digital representation of physical gold (KAU)
  • Tokenized Silver — Digital representation of physical silver (KAG)
  • Staking — Alternative yield method requiring lockups (not needed here)
  • Yield Farming — DeFi yield strategy with higher risk than Holder’s Yield
  • Financial Sovereignty — Self-custody wealth outside traditional banking

Summary: Holder’s Yield is a passive income mechanism rooted in physical assets and sound money principles. It enables users to earn real value through ownership, offering an alternative to inflationary interest systems and risky DeFi practices — all while maintaining full control and liquidity.

Feature Holder’s Yield Bank Interest DeFi Staking
Earning Asset Gold (KAU), Silver (KAG) Fiat Currency Crypto Tokens
Risk Level Low — No Lockup or Lending Low — Bank Backed Medium to High — Protocol Risk
Source of Yield Ecosystem Transaction Fees Lending and Interest Spread Token Inflation or Pool Rewards
Custody User-Owned Kinesis Wallet Bank Controlled Smart Contract or Protocol Vault
Payout Form Gold/Silver (KAU/KAG) Fiat (USD, EUR, etc.) Crypto Tokens

How Holder’s Yield Works

the fee redistribution cycle

Hold
Network Fees
Pool
Distribute
Step 1: Hold KAU/KAG
Keep tokenized gold or silver in Kinesis wallet • No lockup required • Full liquidity maintained • Minimum balance may apply • Simply hold to qualify
Step 2: Network Activity
Users spend, mint, and trade KAU/KAG • Each transaction generates 0.45% fee • Fees collected across ecosystem • No debt or inflation created • Real economic activity drives yield
Step 3: Fee Pool
Fees accumulate in master fee pool • Distributed monthly • Proportional to holdings • Transparent on-chain accounting • No middleman extraction
Step 4: Receive Yield
Yield deposited as KAU or KAG • Paid in actual metal, not tokens • Compounds automatically • No claiming required • Grows your metal stack
Key Insight: Holder’s Yield isn’t created from nothing—it’s redistributed from real transaction fees. The more the Kinesis network is used, the more yield flows to holders. You’re earning from actual economic activity, not token inflation.

Kinesis Yield Types

five ways to earn in the Kinesis ecosystem

Yield Type How You Earn Fee Share Who It’s For
Holder’s Yield Hold KAU/KAG in wallet 15% of fees Long-term savers
Velocity Yield Spend KAU/KAG with Kinesis card 10% of fees Active spenders
Minter’s Yield Mint new KAU/KAG (buy from Kinesis) 5% of fees New depositors
Referrer’s Yield Refer new users who transact 7.5% of fees Community builders
Depositor’s Yield KVT holders (founders) 20% of fees Early supporters
Stacking Yields: You can earn multiple yields simultaneously. Hold KAU for Holder’s Yield, spend with the card for Velocity Yield, and refer friends for Referrer’s Yield—all from the same metal position.

Holder’s Yield vs DeFi Yield

understanding the fundamental differences

Holder’s Yield (Kinesis)
• Backed by physical metal
• No lockup or staking required
• Yield paid in gold/silver
• From real transaction fees
• Full liquidity always
• Redeemable for physical bullion
• Deflationary asset base
DeFi Staking/Farming
• Backed by protocol tokens
• Often requires lockups
• Yield paid in crypto tokens
• From token inflation/emissions
• Liquidity often restricted
• No physical redemption
• Inflationary token supply
DeFi Risks Avoided
• Smart contract exploits
• Impermanent loss
• Rug pulls
• Token price collapse
• Protocol insolvency
• Emission schedule changes
• Governance attacks
Kinesis Risk Profile
• Custodial risk (Kinesis holds metal)
• Platform operational risk
• Regulatory environment changes
• Metal price volatility
• Lower yields than high-risk DeFi
• Requires KYC verification
• Centralized infrastructure
Trade-Off: Holder’s Yield offers lower but more sustainable yields backed by real assets. DeFi can offer higher APYs but with significantly more risk. Many users allocate to both—Kinesis for stable base, DeFi for growth.

Why Metal-Backed Yield Matters

the sound money advantage

Inflation Hedge
• Gold/silver hold value over centuries
• Fiat interest loses to inflation
• Metal yield compounds in real terms
• Purchasing power preserved
No Counterparty Dilution
• Can’t print more gold
• Fixed supply asset
• Your share doesn’t dilute
• Real scarcity backing
Physical Redemption
• Convert KAU/KAG to bars/coins
• Take physical delivery
• Exit digital when desired
• Ultimate self-custody option
Real Activity = Real Yield
• Not printed from nothing
• Fees from actual transactions
• Sustainable model
• Aligned incentives
Generational Wealth
• Gold preserved wealth for 5,000+ years
• Silver used as money for millennia
• Yield in assets that last
• Pass down real value
Bottom Line: Earning 2% in gold that appreciates is worth more than 5% in fiat that depreciates. Holder’s Yield pays you in sound money—assets that have maintained purchasing power across centuries while fiat currencies come and go.

Holder’s Yield Estimator

approximate earnings based on holdings

Holdings (KAU/KAG) Est. Monthly Yield Est. Annual Yield Notes
10 oz (KAU or KAG) ~0.01-0.02 oz ~0.12-0.24 oz Entry level
100 oz ~0.1-0.2 oz ~1.2-2.4 oz Growing stack
500 oz ~0.5-1.0 oz ~6-12 oz Significant position
1,000 oz ~1-2 oz ~12-24 oz Serious holder
Yield Variability: Actual yields depend on network transaction volume. Higher ecosystem activity = more fees = higher yields. These are estimates based on historical averages—actual results vary monthly. Check Kinesis for current rates.

Holder’s Yield Strategy

maximizing your metal-backed passive income

Accumulation Phase
• DCA into KAU/KAG regularly
• Reinvest yield automatically
• Compound metal position
• Focus on ounce count, not price
• Long-term wealth building
• Ignore short-term volatility
Preservation Phase
• Hold stable position
• Let yield compound
• Optional: spend via Kinesis card
• Maintain purchasing power
• Weather market cycles
• Generational asset positioning
KAU Focus
• Gold stability
• Lower volatility
• Traditional store of value
• Central bank asset
KAG Focus
• Silver upside potential
• Industrial + monetary demand
• Higher volatility
• Undervalued historically
Mixed Allocation
• 60/40 or 50/50 split
• Diversified metal exposure
• Balance stability + growth
• Rebalance as desired
Stack Yields: Combine Holder’s Yield with the Kinesis Virtual Card for Velocity Yield. Spend your silver for daily purchases, earn yield on spending, keep gold as long-term hold earning Holder’s Yield.

Holder’s Yield Security

how your metal is protected

Physical Backing
✓ 1:1 allocated metal in vaults
✓ Stored in insured facilities
✓ Regular third-party audits
✓ LBMA-accredited refiners
✓ Segregated from company assets
✓ Redeemable on demand
Vault Locations
• London (primary)
• Zurich
• Dubai
• Singapore
• Sydney
• Distributed counterparty risk
Risk Considerations
• Kinesis platform risk
• Custodial arrangement
• Regulatory changes possible
• Requires KYC verification
• Not fully self-custodied
• Insurance limits may apply
Mitigation Options
• Redeem physical periodically
• Store delivered metal yourself
• Diversify across platforms
• Keep some in self-custody crypto
• Document your holdings
• Understand redemption process
Balanced Approach: Kinesis provides convenience and yield, but consider taking physical delivery of some metal periodically. True financial sovereignty means holding some assets completely outside any platform—physical bullion or hardware wallet crypto (Tangem, Ledger).

Holder’s Yield Checklist

getting started with metal-backed passive income

Setup
☐ Create Kinesis account
☐ Complete KYC verification
☐ Fund account (fiat or crypto)
☐ Mint or buy KAU/KAG
☐ Hold in Kinesis wallet
☐ Enable 2FA security
Earning
☐ Maintain minimum balance
☐ Yield calculated monthly
☐ Distributed as KAU or KAG
☐ Compounds automatically
☐ No action required
☐ Check yield dashboard
Maximize Yield
☐ Consider Kinesis Virtual Card
☐ Stack Velocity Yield on top
☐ Refer friends for Referrer’s Yield
☐ DCA to grow position
☐ Reinvest dividends
☐ Long-term holding mindset
Security & Diversification
☐ Periodically redeem physical
☐ Store delivered metal securely
☐ Keep crypto in self-custody
☐ Tangem for digital assets
☐ Ledger for multi-chain storage
☐ Balance platform vs self-custody
The Vision: Holder’s Yield lets sound money work for you. Gold and silver have preserved wealth for millennia—now they can generate income too. Stack metal, earn metal, redeem metal if desired. Wealth building on a foundation that lasts.
 
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