Exchange of cryptocurrencies Crypto.com revealed significant cutbacks in Crypto.comstaking payouts for most tiers of their VISA prepaid card, causing the token price to plummet by more than 30% in less than a week.
Its May 1 blog post states that “to guarantee long-term sustainability,” card rewards will be lowered by an average of 69.5 percent, and 100 percent on its lowest tier Midnight Blue card. Rewards on the top tier Obsidian card, which requires at least $400,000 in Crypto.com to be staked, will be reduced from 8% to 5%. The new rewards schedule will go into effect on June 1st.
Cardholders with a six-month active stake prior to May 1 will not see their rewards schedule alter until their current term ends.
There will be a cap on three tiers of cards, in addition to the reward rates. The Ruby Steel tier will have a reward limit of $25/month, while the Royal Indigo and Jade Green cards will have a reward limit of $50/month.
Crypto.com unexpected decision to modify the payouts has infuriated current stakers
On May 2, Devchart, a well-known staker, told his 170,000 Twitter followers that the exchange’s decision was “the worst move of the day.”
Crypto.com CEO Kris Marszalek responded to the controversy by tweeting on May 3 that planned adjustments would be changed to reflect “a more fair approach.”
Private Members who use the Obsidian, Icy White, and Frosted Rose Gold cards will earn a yearly yield of 8%, rather than specific modifications per tier, he stated. Holders of Royal Indigo and Jade Green would receive a 4% yearly yield. The exchange’s blog has not yet confirmed this adjustment.
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