Two things are easily confused here, and the difference matters more than it first appears.
The joining bonus
A new member receives a signup bonus of 100 diamonds, equal to $1. It exists so that a member can see how redemption works from their first day rather than having to earn a hundred quiz answers before the mechanic means anything.
It is a small, one-time amount, and it goes to the person joining.
What does not happen
Nobody earns diamonds for having introduced you. There is no per-signup reward paid to another member, no bonus that scales with how many people someone brings, and nothing that accumulates from the activity of people below you. Those structures do not exist here.
Why the line is drawn there
The moment recruitment pays, the incentive to recruit exceeds the incentive to do work. People get pitched by someone earning from the pitch, so the pitch stops being reliable. The community fills with members who joined because they were sold to, and it becomes very hard to tell whether anything is actually working.
Every one of Knomart's other guardrails would be undermined by that, because a group whose income depends on member count will eventually argue for rules that increase member count.
What referrals do earn
Gold Coins. Gold is a community standing currency: it can buy a profile boost or job-board priority, it expires after 30 days, and it can never be converted into diamonds. That conversion is blocked at the database level rather than by policy alone.
So a member who brings in a useful person is recognised, without anyone creating an income stream out of introductions.
Where diamonds do come from
Doing things. Quiz answers, community micro-tasks, approved merchant introductions as a tasker and approved creator posts. All of it is activity, and all of it produces something the community can use.
How to spot the difference elsewhere
Ask what someone earns from your joining. Here the answer is nothing — and anybody telling you otherwise is describing a different arrangement.