The Coin Reward paid on Stakes in Dukascoins

The Bank pays a Coin Staking Reward for fixed term stakes in Dukascoins. The Coin Staking Reward will be paid at the beginning of the stake’s term and will be blocked until the term’s expiration. The Bank may manage and limit the maximum size, term and rate of the offered coin reward at its own discretion and at any time. The Coin Staking Reward will be paid out in Dukascoins.

The amount of the reward rate paid by the Bank depends on the stake term and size. The bigger the staked amount and the longer period, the higher the Stake Reward rate paid out:

Each stake is considered as a separate contract. Two stake amounts can’t be summed up without cancelling each other out. Total amount of Dukascoins allocated for this reward program by separate MCA account holder can not exceed 50 000 Dukascoins. In case if the client would like to place larger amount of Dukascoins he/she can request tailor-made conditions upon individual request to the Bank sent to the e-mail address crypto@dukascopy.bank.

If a client requests to cancel a stake in Dukascoins allocated in the Bank before the maturity date, the client will be charged a penalty of 5% of the allocated amount in Dukascoins and will not be entitled to the Coin Reward for that particular Stake. Same approach will be applied to the cancelled stakes allocated in Blockchain with the exception of not applying the 5% penalty.

The Bank will pay the reward from the Bank’s own Dukascoins, i.e. released in favor of the Bank in accordance with the procedure described in the “Airdrop concept”, or obtained on the secondary market.

Public Coin Reward stake registry

Dukascopy Bank offers public registry of active Coin Reward stake to provide clients an opportunity to check if their agreements to park Dukascoins in the Bank’s custody for reward are applied correctly. Those clients who cannot find their transaction codes for active Coin reward stakes in the registry below are invited to contact support desk by e-mail crypto@dukascopy.bank.

To locate the reference Stake code, please, open your Dukascopy Connect 911 messenger, press icon, call the chat-bot (the button with the cross at the left bottom corner of the application screen), choose "Dukascoins" option, then choose "Reward stakes" and locate the bubble with the specific active stake amount. You need the 8-symbol combination in the "ID" row.

The Bank may extend or stop its Coin Staking Reward program at any time it may consider to be reasonable without affecting previously accepted stakes. Additional conditions are announced on the website.

INCOME GENERATING EXAMPLES FOR COIN AND FIAT REWARD STAKES

Let's assume that the client is considering different investment options offered by different banks. As a rule, the annual rate of return for such an asset allocation is around 0.2-2%. Staking Reward programs offered by Dukascopy Bank through Dukascoin as the intermediary vehicle may appear to be a way more attractive option. Use cases described below will help to compare income-generating staking programs available for Dukascopy Bank clients with other conventional forms of investments.

Please, bear in mind that Dukascopy Bank does not guarantee exchange rate of Dukascoins to EUR, and the price can decrease or increase according to customers demand.

USE CASE 1. One year Coin Stake Reward projected profitability in case if the exchange rate of Dukascoins remains unchanged at the expiration of the Stake term.

Let's assume that you have 1,500 EUR and consider “moderate” return of Dukascoin Coin Stake Reward for an amount of approximately 100 DUK+. In this case you can accumulate on your MCA account 1,500 EUR and buy 1,000 DUK+ on internal marketplace at the current exchange rate of 1.5 EUR per 1 Dukascoin. According to the current reward rate schedule your yearly income rate will be 9% or 11% (90 DUK+ or 110 DUK+) depending on the stake storage place. Stakes allocated with the Bank have 9% reward and stakes allocated with Your ERC-20 supported external blockchain wallet have 11% reward rate. Thus, at the expiration of the Stake you will have 1,090 DUK+ or 1,110 DUK+. In case if the exchange rate of Dukascoin stays at the same level of 1.5 EUR per 1 Dukascoin, you will be able to sell 1,110 DUK+ at 1.5 and get back 1,665 EUR. As a result, the yearly rate of return in fiat currency will be: 1,665/1500 * 100 - 100 = 11%.

USE CASE 2. One year Coin Stake Reward projected profitability in case if the exchange rate of Dukascoins rises to 10 EUR per 1 Dukascoin at the expiration of the staking term.

Let's assume that you have 22,500 EUR and consider applying for the Dukascoin Coin Stake Reward with the aim of collecting of approximately 2,500 DUK+. In this case you will need to invest 22,500 EUR and buy 15,000 DUK+ on the internal marketplace at the current exchange rate of 1.5 EUR per 1 Dukascoin. According to the current staking reward rate schedule your yearly income rate will be 16% or 18% (2,400 or 2,700 DUK+) depending on the stake storage place. Thus, at the expiration of the Stake you will get your 15,000 DUK+ returned back and a reward of 2,700 DUK+ on top. In case if the exchange rate of Dukascoin reaches 2 EUR per 1 Dukascoin you will be able to get back already 35,400 EUR by selling your 17,700 Dukascoins at the rate 2 EUR per 1 Dukascoin. As a result, the yearly rate of return will be: 35,400/22,500 * 100 - 100 = 57.3%

Clients looking for a more conservative type of investment combining crypto and fiat income may be interested to consider another staking reward program offered by Dukascopy Bank – EUR Reward staking. This staking program currently offers a reward of 0.2 EUR per every Dukascoin allocated on Dukascopy Bank custody for 1 year and 0.04 eurocents per every Dukascoin allocated in Dukascopy Bank custody for 3 months.

USE CASE 3. One year EUR Reward Stake projected profitability in case if the exchange rate of Dukascoins rises to 2 EUR per 1 Dukascoin at the expiration of the staking term.

You decided to buy 50,000 DUK+ and allocate this amount to a EUR Reward Staking. You will need 75,000 EUR available on your MCA account to buy 50,000 DUK+ on the internal marketplace at the rate of 1.5 EUR per 1 Dukascoin. The yearly income gained on a 50,000 DUK+ stake will be 10,000 EUR. Thus, at the stake deposit expiration date you will get your 50,000 DUK+ returned back and a reward of 10,000 EUR on top. If you immediately decide to sell the 50,000 DUK+ at the exchange rate of 2 EUR per 1 Dukascoin at the expiration of the stake term you will get a total of 100,000 EUR on your MCA account. The yearly rate of return will be 110,000/75,000 * 100 - 100 = 46.7%.

COMPARATIVE TABLE OF INCOME GENERATED BY STAKING REWARD PROGRAMS