Kinesis launches the Kinesis Minting Programme

Kinesis is launching the Kinesis Minting Programme (KMP), a rewarding new initiative enabling participants to continuously accumulate gold (KAU) as they mint cycle.

The programme enables long-term KVT holders and qualifying minters to earn 0.02% in gold (KAU) on each mint cycle, with all minting costs covered by Kinesis. Gold rewards and cost reimbursements will be paid into the minter’s Kinesis account on a weekly basis. Importantly, there are no maximum limits on the number of mint cycles or volume minted.

The Kinesis Minting Programme will launch at 00:00 (UTC) on Tuesday 4th March.

At the core of the KMP is mint cycling, the process where users mint gold (KAU), sell it on the Kinesis Pro exchange and repeat the cycle.

Building on the success of previous minting initiatives, the KMP is designed to stimulate repeated, high-volume engagement in the Kinesis platform. With each minter incentivised to cycle substantial volumes through the platform in a single day, the scale of transactional activity the KMP could generate becomes clear.

It is not just the minters of Kinesis who stand to benefit from the KMP. Kinesis has activated the KMP to catalyse the Kinesis yield engine. As minters capitalise on this unique opportunity, overall transaction volume is expected to rise, significantly boosting the yields across the platform. As is the Kinesis way, the impact of the KMP will be felt by every last user of the Kinesis Monetary System.by every last user of the Kinesis Monetary System.

Key Benefits of the Kinesis Minting Programme​

Participants earn 2 basis points (0.02%) gold (KAU) for every completed mint cycle, providing an additional reward on top of the existing benefits of minting.

Refunded Fees Breakdown:​

As part of the KMP, participants are reimbursed for the following fees:

• Mint trade execution fee: (0.45%): charged when minting gold (KAU).
• Minting/Exchange spread (0.23%): represents the difference between the Ask in the Kinesis Mint and Bid in the Kinesis Exchange.
• Trade execution fee (0.22%): applied when selling gold (KAU) for USD on the Kinesis Pro exchange.

In total, 90 basis points (0.90%) are reimbursed*.

Payout schedule​

Gold rewards and reimbursements are settled weekly.

Each week, gold (KAU) rewards and fee reimbursements will be accumulated from Monday at 00:00 (UTC) to the following Monday at 00:00 (UTC).

Gold reward and reimbursements will be paid out into the minter’s Kinesis account weekly, each Tuesday, going forward.

The first payout date will be Tuesday 11th March.

*In a flat market, where a mint cycle is conducted without market movement with sufficient market liquidity, the standard cost is 0.90%. As part of the KMP, participants will receive a refund of minting costs (0.90%) along with an additional 0.02% reward, resulting in a net benefit of approximately 2 basis points, less the $5 fixed withdrawal fee. Returns are calculated based on prevailing fees and spreads and are subject to market fluctuations.

Maximising Monthly Yields through Mint Cycling​

The more volume Kinesis users mint, the greater their share of the yields each month. Mint cycling is a powerful way for users to increase their share of the yield fee pool and their monthly yields:

• Minter’s Yield (5%): Each minting cycle generates more transaction volume, increasing a minter’s lifetime share of this yield.
• Velocity Yield (10%): Each time a user sells their minted gold or silver, they activate the Velocity Yield. Therefore, mint cycling allows participants to secure a greater share of the Velocity Yield, which rewards users based on the volume they generate, in relation to system-wide transactional volume.

With fewer participants in this initial phase, minters can secure a greater proportional share of the fee pools. Participants have the opportunity to secure a larger proportion of the Minter’s Yield and Velocity Yield distribution before the system scales to a wider user base.

How does the KMP benefit all Kinesis users?​

The KMP plays a key role in expanding the Kinesis Monetary System, increasing transactional activity and, as a result, yields.

The Holder’s Yield​

With high volumes expected, the Kinesis Minting Programme could have a significant impact on the Holder’s Yield.

Increased volume results in a larger share of fee revenue being distributed to those holding precious metals on the platform. The Holder’s Yield is shared out, based on the amount of a metal you hold, in relation to the overall market cap. As mint cycling encourages high-volume trading and fee generation, the KMP has the potential to enhance yields for everyone holding precious metals with Kinesis.

Joining the Kinesis Minting Programme​

In phase 1, the KMP is open solely to long-term KVT holders and highly engaged Kinesis users.

Kinesis has structured the KMP to recognise and reward KVT holders for their foundational role in the growth of the Kinesis Monetary System. In this way, KVT owners have the early opportunity to maximise the potential of the programme.

To reward long-term KVT holders the only requirement is:

1. KVT holders must have held 1 or more KVT for over a year.
2. For those Kinesis users who have not held 1 or more KVT for over year:
3. Kinesis users must meet one of the following eligibility requirements:

Please note: these eligibility requirements must be met after March 4th 2025. Activity on the Kinesis platform before this date will not grant you access to the Kinesis Minting Programme.

• Purchase 10 KVTs
• Sign up 10 individuals to the Kinesis ecosystem
• Onboard 3 businesses to utilise the Kinesis platform
• Trade $500,000 on the Kinesis Pro exchange
• Spend $10,000 in Metalback rewards
• Spend $10,000 using the Kinesis Virtual Card

These requirements ensure that participants actively contribute to the ecosystem, reinforcing the community-driven nature of Kinesis. By fulfilling one of these criteria, users can unlock the benefits of the minting programme and begin earning rewards.o

For a detailed guide, refer to the KMP White Paper

Programme Timeline & Future Phases​

Phase One: Early Access​

• Limited access for early adopters (KVT holders) and highly engaged users.
• Full cost refunds and gold rewards for participants
• Weekly reimbursements.

Phase 1 will run for a limited period.

We look forward to updating you on Phase 2, which will include access to the wider Kinesis Community.

How is the Kinesis Minting Programme made possible?​

From a commercial perspective, the KMP is a sustainable and profitable initiative for Kinesis due to the fully integrated nature of the system, strategic partnerships, and Kinesis’ vertical integration within the precious metals industry.

• Fee pool participation: Kinesis itself is a participant in the fee pool, receiving revenue from each fee taken.
• Market Stability: Kinesis acts as both market participant and facilitator, ensuring smooth asset flows and stable pricing.
• Industry-Leading Relationships: Strong partnerships with gold and financial sector leaders provide deep liquidity and competitive pricing.
• Ownership & Efficiency: Kinesis owns its entire technology stack, minting platform, refinery, mint, and a number of vaults, eliminating third-party reliance and reducing costs.
• Seamless Operations: Vertical integration ensures efficient, secure, and cost-effective transactions.

For Kinesis, the KMP creates a continuous cycle of engagement and rewards, driving user participation, liquidity, and market attention. The more activity within the system, the more participants and the ecosystem as a whole benefit, fostering organic growth and scalability.

Conclusion​

We encourage Kinesis users to access the benefits of the KMP.

The KMP is designed to drive value across the entire ecosystem by increasing transactional volume, enhancing system-wide yields, and reinforcing the platform’s long-term sustainability. Every minted asset contributes to greater liquidity and engagement, ensuring that all participants benefit from the system’s expansion.

The Kinesis Minting Programme upholds the core principles of the platform. Kinesis is, and always will be, the monetary system built to reward every single participant.

 

[Willbe]

I don't think that these payments relate to the 2 bp reward.
I think they relate to adjustments to prior payments within the Kinesis Minting Programme.
I don't know any of the detail, but they won't apply in all cases.

We are now well over a month into the minting programme. Maybe it is time for Kinesis (maybe @ctharvey) to explain if it has been rewarded yet and if not, when will it be rewarded.
Instead of us making assumption - think bit of clarification is needed.

 

[MrLombaard]

Felt like this earlier

 

[s5072]

Thanks to all those participating in the KMP. I was astounded at the jump in my Holders Yield last month, I thought there was a mistake. Based on that figure, my projected annual yield is 5.75%,, paid in gold! That's incredible and long may it continue. If they stop the KMP and we revert to the previous yields it will be such a downer.

The best saving rates in the UK, 5% being the top:

https://www.moneysupermarket.com/savings/goals/?goal=SAV_EASYACCESS&source=MIC-0X0000048C2DEA5131&msclkid=a0edab2eca4f1ccf0a30c32f222c030b&utm_source=bing&utm_medium=cpc&utm_campaign=MON_Savings_Performance%20Max_%5BM-MON-SAVING%5D&utm_term=www.moneysupermarket.com&utm_content=Savings%20Account&gclid=a0edab2eca4f1ccf0a30c32f222c030b&gclsrc=3p.ds&gad_source=7

 

[s5072]

I'm thinking of joining the party and doing some mint cycling.

Is there a threshold over which it's made worthwhile? A minimum number of KAU?

 

[AlM]

Minting is in lots of 100KAU, with that minimum.

 

[AlM]

However, you have time to prepare over Easter...

 

[s5072]

Thanks, I will give it a go when markets are open.

 

[s5072]

To open the Mint platform, go to menu in top right hand corner and click on link for mint. It opens another tab without the need for logging in.
On the KMS asset bar, choose USD.
Go to withdraw, next, choose mint account on right (other option is personal bank account).
You can go back to the mint tab and get a live price including the 0.45% fee. 100 KAU at $92.98 will need about $9340 (including about $41 for 0.45% fee).
So it's probably good to send about mininum $9380 to cover the $5 fee and any sudden jump in price. I actually send $10K to be sure that I don't have to do another transfer.
A few seconds later, money shows up i. Mint account.
Buy at market is easiest and default. Limit option is available.
As soon as the buy order on the mint is executed, 100 KAU is in your KMS wallet.
Sell the KAU and repeat the process.

I will follow this process

 

[s5072]

Minting is in lots of 100KAU, with that minimum.

So just to be clear, I can't mint 150 KAU? Does it have to be 100 or 200?

 

[AlM]

Correct, only in lots of 100KAU.

When you Withdraw $ to the Mint, leave at least $5 for the fee.

Usually each step is quick, but sometimes a few more seconds are needed.

If you get a long delay, it'll be when selling the KAU. Look at the bottom of the Exchange screen, where you'll see an order that's not been processed. Just cancel it and start again.

This is my brainless woodpecker approach, although that's an insult to woodpeckers, who manage their part of the sylvan ecosystem brilliantly and are much loved by trees.

 

[AlM]

Amazing woodpeckers...

What Are Woodpeckers Good For | Essential Benefits Explained - The Pets Facts

What Are Woodpeckers and Their Unique Characteristics? Woodpeckers are fascinating birds belonging…

thepetfacts.com

 

[s5072]

Amazing woodpeckers...

What Are Woodpeckers Good For | Essential Benefits Explained - The Pets Facts

What Are Woodpeckers and Their Unique Characteristics? Woodpeckers are fascinating birds belonging…

thepetfacts.com

They are. I learnt yesterday that their tongues shield them from headaches from all that pecking

Why woodpeckers can hammer without getting headaches

How can woodpeckers hammer into wood to find food or excavate nests without getting headaches? Founding Editor Eldon Greij explains.

www.birdwatchingdaily.com

 

[s5072]

Participants earn 2 basis points (0.02%) gold (KAU) for every completed mint cycle, providing an additional reward on top of the existing benefits of minting.

So for every 100KAU cycle I get 0.0002 KAU?

And for every 200KAU cycle I get 0.0004 KAU?

Is that correct?

Was wondering roughly how many cycles I would have to do to cover Cointracking subscription.

 

[Hickory Creek]

What would be the costs of making this minting promotion a permanent feature?

 

[s5072]

What would be the costs of making this minting promotion a permanent feature?

Would be good to know, because I'm assuming Kinesis are taking a hit from this. But if the benefits outweigh the costs, why not make it permanent?

If the holders yield, which last month surpassed the best bank rates here by a very good margin (and paid in almighty gold), reverts to what it was before? Well, I may have to slit my wrists

 

[AlM]

I don't know, but what would you do?

I'd say that no single element of the operation can be intended to run at a loss because, at this stage, it'd be too dangerous and counterproductive reputationally, especially for partners of all types.

However, operations could be run at a lower profit to produce other benefits in terms of increasing exposure, motivating long-term holders to publicise the platform when the final pieces (VDC & onramps) are in place and establishing an insurmountable advantage over competitors.

 

[Uchiki]

I'm assuming Kinesis are taking a hit from this.

From Kinesis' point of view, while some of the costs are offset, it is not self funding.

So, coming back to the title of this thread, where does the Minting Programme fit in?

I see it as a bridge or primer to set the table as these really external contributors become ready to feed in.
It's a bit like the card cashback in that it's cross funded from other Kinesis activities.

The above quote is from this post that a made towards the end of last month. Worth a quick read if you haven't already.

https://forum.kinesis.money/threads/context-of-the-kinesis-minting-programme.3392/

A few comments on the process and experience to date follow

Operation

It normally takes ~12 seconds for minted KAU to appear in your KMS account ie be ready to sell.
It takes about double this time for realised USD to appear in your Mint account. There are a number of clicks to initiate the Withdraw to Mint. You also have to enter the amount to withdraw, which as AlM said above has to be $5 less than your balance.

While unusual, either of these times can become extended.

During the transfers, you are exposed to risk of price moving against you.
On the other hand, it can move in your favour.
Multiple cycles may help to balance this out.

In the Mint, you enter the number of lots to buy. These are lots of 100 KAU ie 3 lots is 300 KAU.
It's not possible to enter part lots.



Costs and Benefits

There is a $5 fee to withdraw USD funds back to the Mint to start the next cycle.
If you are relying on the 0.02% reward to cover this, then 300 KAU would be your minimum cycle size.
While my expectation is that it will be paid, to date, my understanding is that this reward has not yet been paid.
You'll therefore need to carry the cost of those withdrawals for the time being.

Rebates have been paid weekly on Mondays rather than Tuesday. This helps start each new week, rather than having to wait an extra day.
To date they have not been exactly for 0.9%.
Some have been less and some slightly more.
This variation may be related to Mint fees and possibly Mint-KMS spreads being captured in USD rather than KAU.

The main benefit is the Velocity yield.
To date, this has worked out at ~5% of the fees that you generate.

You will also receive Minter yield. While this is perpetual, it is a modest immediate benefit and the level isn't straightforward to calculate as it also depends on others' current and past activity.

One way that you can maximise the benefits is by minting in a referred account eg spouse or business.
By doing this, as the referrer, you will receive 7.5% of the fees generated.

If you want to utilise the maximum rebate allowance ie $1m minting per day, you'll need to have sufficient KAU balance to "burn" 85-95 KAU per day prior to receiving the rebate after a week's mint cycling. The amount depends on the KAU/USD price.