Core fee generation
Transfers
Sends of KAU and KAG from wallets or accounts generate a 0.45% fee.
These are on-chain transactions, so will show on the Explorer.
Minting
Minting transactions are on-chain, so will show on the Explorer.
However, the 0.45% minting fee is applied in USD and then used to purchase the KAU or KAG depending on which was minted.
The fee is therefore off-chain.
See here for further detail
KAU/KAG Trades
A 0.22% trading commission is applied in KAU or KAG for all trades that include KAU or KAG as one of the trading pair.
(Note: market makers are exempt from this fee, which helps in keeping spreads as tight as they are. - added 22nd Dec 22)
For trades of the KAU/KAG pair, the trading commission is in KAU.
This is off-chain, so won't show on the Explorer.
Crypto Trades
A 0.22% trading commission is applied.
The aggregate amount of these commissions is used to purchase KAU and KAG in a ratio of 50:50. At the end of the trading day, this is added to the fee pool.
This is off-chain, so won't show on the Explorer.
Virtual Debit Card
KMS account holders that select the paid plan will be eligible for 2% of all purchases up to $2000 per month, paid in KAU
Additionally, Kinesis will credit 1% into the fee pool.
This is off-chain, so won't show on the Explorer.
Metalback program
Purchases from participating merchants done via your KMS account are eligible for Metalback, paid in KAU.
The size of payments varies between merchants.
Purchases can be made using the Kinesis virtual card or external payment methods accepted by the merchant (typically external credit or debit cards).
An amount that matches the Metalback received by the purchaser is paid to the fee pool.
These amounts are funded by the merchants as an incentive to purchase from them.
This is off-chain, so won't show on the Explorer.
Kinesis Pro
Kinesis Pro will be a separate exchange run by Kinesis and targeted towards the crypto market.
Fees will be deposited into the KMS fee pool after conversion to KAU/KAG.
That rounds up the actions that directly generate fees.
How about some of the other activities within the KMS?
Redemption
In order to redeem, a transfer is required to the root account to destroy the KAU or KAG.
Native Payments
Using KAU or KAG to pay directly for something involves a transfer.
Kinesis Pay
This involves a transfer from purchaser to merchant.
The net payment amount is discounted by the transaction fee.
While the purchaser pays the full value of the item they are purchasing (discounted net amount plus transaction fee), they pay no fee over and above the value of the item, so the fee is effectively funded by the merchant.
Sale of Kinesis Mint products
Purchasing using KAU or KAG allows the purchaser to hedge their position.
If distributors, retailers and end customers do this, multiple transfer fees are possible for the same product sale.
Depositing your own bullion
This will involve minting via the EPD process.
Miner supplying metal via the Kinesis refinery
The likely route is via minting, followed by selling.
The refinery will obviously receive a refining margin from the miner, but this is part of their business model and outside of the KMS fees.
How frequently is the Master Fee Pool updated?
Updates to the Dashboard display are done daily just after midnight UTC.
Transfers
Sends of KAU and KAG from wallets or accounts generate a 0.45% fee.
These are on-chain transactions, so will show on the Explorer.
Minting
Minting transactions are on-chain, so will show on the Explorer.
However, the 0.45% minting fee is applied in USD and then used to purchase the KAU or KAG depending on which was minted.
The fee is therefore off-chain.
See here for further detail
The automated blockchain fees for the minting transfers are therefore redundant and need to be "reversed".
KAU/KAG Trades
A 0.22% trading commission is applied in KAU or KAG for all trades that include KAU or KAG as one of the trading pair.
(Note: market makers are exempt from this fee, which helps in keeping spreads as tight as they are. - added 22nd Dec 22)
For trades of the KAU/KAG pair, the trading commission is in KAU.
This is off-chain, so won't show on the Explorer.
Crypto Trades
A 0.22% trading commission is applied.
The aggregate amount of these commissions is used to purchase KAU and KAG in a ratio of 50:50. At the end of the trading day, this is added to the fee pool.
This is off-chain, so won't show on the Explorer.
Virtual Debit Card
KMS account holders that select the paid plan will be eligible for 2% of all purchases up to $2000 per month, paid in KAU
Additionally, Kinesis will credit 1% into the fee pool.
This is off-chain, so won't show on the Explorer.
Metalback program
Purchases from participating merchants done via your KMS account are eligible for Metalback, paid in KAU.
The size of payments varies between merchants.
Purchases can be made using the Kinesis virtual card or external payment methods accepted by the merchant (typically external credit or debit cards).
An amount that matches the Metalback received by the purchaser is paid to the fee pool.
These amounts are funded by the merchants as an incentive to purchase from them.
This is off-chain, so won't show on the Explorer.
Kinesis Pro
Kinesis Pro will be a separate exchange run by Kinesis and targeted towards the crypto market.
Fees will be deposited into the KMS fee pool after conversion to KAU/KAG.
That rounds up the actions that directly generate fees.
How about some of the other activities within the KMS?
Redemption
In order to redeem, a transfer is required to the root account to destroy the KAU or KAG.
Native Payments
Using KAU or KAG to pay directly for something involves a transfer.
Kinesis Pay
This involves a transfer from purchaser to merchant.
The net payment amount is discounted by the transaction fee.
While the purchaser pays the full value of the item they are purchasing (discounted net amount plus transaction fee), they pay no fee over and above the value of the item, so the fee is effectively funded by the merchant.
Sale of Kinesis Mint products
Purchasing using KAU or KAG allows the purchaser to hedge their position.
If distributors, retailers and end customers do this, multiple transfer fees are possible for the same product sale.
Depositing your own bullion
This will involve minting via the EPD process.
Miner supplying metal via the Kinesis refinery
The likely route is via minting, followed by selling.
The refinery will obviously receive a refining margin from the miner, but this is part of their business model and outside of the KMS fees.
How frequently is the Master Fee Pool updated?
Updates to the Dashboard display are done daily just after midnight UTC.
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