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The Loyalty Program & How It Benefits You. Part 2: Dynamic Passive Income

Dec 2, 2020·3 min read
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The Loyalty Program & How It Benefits You. Part 2: Dynamic Passive Income

Nexo is committed to the constant improvement of its earn and borrow offerings. Тhe new Loyalty Program is designed to give you great perks for both our Instant Crypto Credit Lines™ and our Earn on Crypto & Fiat suite, but in this pre-launch explainer we focus on the specific rewards for passive income earners.

A More Accessible, Versatile Yield

A key benefit of the four-tier Loyalty program for earners is the fact that it provides a more flexible and accessible way to earn a higher yield on your savings than the previous NEXO Staking Bonus. While the old system extended bonus interest only to those users holding NEXO Tokens equivalent to at least 10% of their Portfolio Balance*, the new rewards system is tiered so you don’t need to stake as many NEXO Tokens as before to get preferential borrowing and savings rates. With the new Loyalty system, having as little as 1% of your Portfolio Balance in NEXO Tokens automatically places you within a higher tier and, in turn, gives you more passive income. Coupled with the Earn in NEXO opt-in, which provides an additional 2% yield on savings across all supported assets, the scheme makes our bonuses much more versatile in that they adapt to your investment needs and goals.

Dynamics That Move With the Swings of the Market

Another perk of the new Loyalty program: it partially absorbs the shocks inherent in crypto markets. In the event that the value of your Portfolio Balance changes abruptly and the proportional value of NEXO Tokens against other assets drops, the new scheme allows you to keep earning preferential interest at the next level down to your current one. Conversely, if Nexo’s native token appreciates, you will need far less of it to cover the thresholds for the Silver, Gold, and Platinum tiers.

For example, imagine you have 5% of your Portfolio Balance in NEXO, and the rest in Bitcoin, that is, you fall within the Gold tier. If the price of Bitcoin goes up, the proportion of NEXO to your Portfolio Balance may fall beneath 5%. In this scenario, your loyalty status will change to Silver and you will still get bonus rates, which was not the case with the NEXO Staking Bonus. But then let’s imagine that in the next few hours, BTC price drops – your tier will automatically switch back to Gold.

We’ve also upgraded our platform’s Dashboard so you can now monitor the amount of NEXO you need for the next tier up at any time, making investment decisions easier.

More Tokens Mean More Dividends & More Free Crypto Withdrawals

As you know, Nexo distributes 30% of its net profits to token holders through dividends. The more NEXO Tokens you have in your wallet, the higher your base dividend payout will be. The new Loyalty program comes on top of the Loyalty Dividend which is paid out individually for each NEXO Token, based on how long it has been in the Nexo Wallet from one ex-dividend date to the next. Loyal customers who are NEXO Token holders since the early days of the company will particularly benefit from this development because as more people buy NEXO Tokens, the value of their NEXO Token holdings increases.

In case you want to take crypto out of your savings wallet, Nexo covers the gas fees on up to 5 withdrawals per month completely free of charge. This perk is in line with our policy to support an inclusive digital asset environment. The precise number of free crypto withdrawals depends on the Loyalty tier you're currently in, as follows:

Inclusiveness for Crypto Enthusiasts and Seasoned Investors Alike

Whether you are new to crypto or you have accumulated significant wealth thanks to it, the Loyalty program benefits everyone equally. Rather than taking the total value of your digital assets into consideration, the new program uses the proportion of NEXO Tokens in your wallet in relation to all your assets to calculate your bonuses. This is a much more inclusive scheme that fosters and promotes wider crypto adoption. The option to earn interest in NEXO Tokens, rather than buying, also perfectly complements the Loyalty scheme, making it even easier to earn your Nexo Loyalty stripes.

Аs we gear up for new releases, the new Loyalty program allows us to lay the groundwork for the many products to come and the perks that will accompany them, so as to better reward those investors most loyal to Nexo and our native token.

* The Portfolio Balance is the combined value in USD of all the assets (crypto, stablecoins, and fiat) in both your Credit Line AND Savings Wallets. It will be visible in your newly redesigned account Dashboard.

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