In line with our self-sustainable business model and the goal of bringing out the full potential of the NEXO Token, we are incorporating free cryptocurrency withdrawals into the list of perks of our Loyalty Program. From now on, Nexo will cover the gas fees – paid to miners as compensation for adding a transaction to the blockchain – on up to 5 of your crypto withdrawals per month.
More $NEXO = More Free Crypto Withdrawals
Depending on your NEXO Token holdings and, consequently, your Loyalty tier, you will receive between one and five monthly crypto withdrawals completely free of charge, as follows:
Once the free withdrawal limit is reached, gas fees will automatically be charged to clients. The counter will reset on the first day of each month, after which you can make another set of free withdrawals.
Under our #ZeroFees policy, you can make unlimited free-of-charge fiat withdrawals, crypto and fiat transfers into your Nexo Wallet, and credit line withdrawals. Nexo does not charge any credit line origination, forex, and exchange fees.
In including free crypto withdrawals in our Loyalty Program, we are giving our native NEXO Token greater utility, further incentivizing holders to benefit from Nexo’s preferential earn and borrow rates, and contributing to a stronger tokenomics model.
The Rationale: Surging Demand and Gas Fees
We are among the few companies to offer zero-fee transactions on the blockchain. Over the past two years, we have saved our users millions of dollars’ worth of gas fees by covering this cost for all crypto withdrawals. In doing so, we helped create and supported the inclusive and increasingly digital asset environment that we all operate in today.
Over the past weeks, the Ethereum network – the most utilized blockchain and home to decentralized finance (DeFi) protocols – saw gas fees soar to record highs, while Bitcoin transaction costs spiked to their highest rates for the past three years.
Gas fees, including for withdrawal, are needed in order for your transaction to be processed by the network and added on the blockchain. This fee depends on a series of network-related factors and goes to miners as an incentive to secure the network. As a party external to this process, Nexo does not and cannot collect gas fees.
At our end, the BTC rally and skyrocketing gas prices coincided with a series of product upgrades under our Nexonomics initiative – notably, the release of the Nexo Exchange, as well as the NEXO Token’s ascent beyond $1.5 apiece to a market cap of just under $900B. As a result, demand for services across our lineup – borrowing, earning and, now – swapping, surged to an unprecedented level, with transaction volumes naturally following this trend.
With gas fees escalating, the integration of free crypto withdrawals into our Loyalty Program contributes to maintaining the sustainability of our business model, which in turn further boosts our financial stability and gives us the independence to guarantee the growth and security of our clients’ assets.
As the space matures and edges towards mass crypto adoption, our common belief in the digital assets space is increasingly bolstered by certainty. It is our joint responsibility, as individual investors and businesses, to ensure this certainty is, in turn, bolstered by a more stable, sustainable crypto environment. This latest upgrade to our Loyalty Program is one of the steps Nexo is taking to ensure the long-term results of our collective endeavor to redesign finance.