This week, Gnosis, architects of the fully EVM-compatible Layer-1 Gnosis Chain, announced the launch of a rewards program it believes will benefit GNO holders, accelerate the mainstream adoption of crypto payments, and generate further stakeholder engagement on the network.
Following the recent approval of GIP-110 Snapshot, the GnosisDAO will create and fund a rewards program that will offer cashback to Gnosis Pay users. Eligible account holders who hold GNO in their accounts will receive cashback on purchases made with their Gnosis Pay Card, incentivizing paying with crypto and rewarding GNO holders.
“We’ve been working hard to elevate and enhance Gnosis Pay to prepare its functionality for mass adoption,” co-founder Friederike Ernst said. “Building on last year’s growth of Gnosis Chain, the rewards program will bootstrap user engagement without significant costs to the DAO. More importantly, it’s also designed to attract new sticky users through a suite of products, with Gnosis Pay Card being the first.”
“This is another step forward in realizing the Gnosis 3.0 thesis, aimed at bridging the gap between blockchain technology and practical, everyday applications for the masses.”
To operate the rewards program, the DAO has allocated a pool of 10,000 GNO. It offers the following four tiers of cashback to users who have GNO in their account:
≥0.1 GNO: 1%
≥1 GNO: 2%
≥10 GNO: 3%
≥100 GNO: 4%
Users’ cashback percentage will scale between tiers but will be capped at 4%. For example, holding 5.5 GNO will earn a 2.5% cashback. There is also an extra 1% cashback available for holders of the Gnosis Pay OG NFT. Cashbacks are available on a maximum monthly spending limit of EUR 20,000, USD 22,000, and GBP 18,000.
Users do not need to do anything to claim the cashback as rewards will be automatically distributed weekly, five to 12 days after they make a card payment. The cashback percentage users receive is calculated based on the minimum amount of GNO held in their accounts during the seven days leading up to that payment.
All rewards will be measured in the dollar value of the transaction before being distributed back to the user in GNO. The amount of GNO rewards that users receive will be based on the rate of the currency pair (USD/GNO) at the time of distribution. This process will be managed by karpatkey, a provider of Web3 treasury management who will be responsible for tracking, determining, and distributing the rewards to users.