The largest and most active cryptocurrency exchange platform in the world has announced a new program to reward account holders who have DAI tokens in their portfolios. On July 29, Coinbase announced that customers holding more than one DAI token will enjoy a 2% interest bonus payment based on annual percentage yield.
To qualify for this special interest, Coinbase customers must reside in one of the following countries:
- United Kingdom
- United States
The first bonus interest payments will be made on the fifth day following the acquisition or deposit of DAI tokens into Coinbase client accounts. Even though the interest is calculated on the basis of APY, the payments are made daily.
DAI is a stablecoin developed by the Maker Group. It is the first digital currency that is based on Proof of Work (PoW), not Proof of Stake (PoS). It is intended to operate in a closed-door network which allows for total control over the network. MakerDAO is the company behind DAI, and it operates as a foundation that intends to change the way people create, purchase, and sell goods and services. It's a platform that allows entrepreneurs to raise money by selling their ideas and products to the general public. The MakerDAO platforms enables individuals to buy or sell any creative project they would like, and in turn use their money to buy or sell projects from their financial activities. The concept of the MakerDAO platform revolves around the idea that people should not have to have a million dollars of capital to successfully launch their projects; in other words, DAI is a currency used for crowdfunding.
This is not the first Coinbase initiative to encourage customers to hold digital currency tokens. The platform's very own stablecoin has a system that rewards holders based on their account balances. Coinbase's United States Dollar Coin (USDC) token faces competition from Tether and even Goldman Sachs, an investment banking giant that has contemplated issuing its own stablecoin. Cryptocurrency market analysts believe that stablecoins will likely enjoy attention and appreciation from now until the day the U.S. Treasury announces that it will issue a digital version of the greenback.