Since July 20, 2018 Gulden owners can safely secure their digital coins in a savings deposit. Within a few days of its launch, more than 35 million Gulden -equivalent of more than 2 million Euros- were deposited. This made Gulden the first crypto currency in the world that enabled owners to achieve an expected reward or interest yield of between 6% and 12% in a safe way.
There are now more than 100 million Gulden parked in witness accounts (Nov 2019). This means that currently 1 out of 5 of all available Gulden are out of circulation for a longer period of time and generate interest income.
By creating a so-called witness account in the desktop application of Gulden, an amount can be deposited for a certain period of time. The more one deposits and the longer, the higher the reward one receives. Unlike the deposit itself, the rewards can be withdrawn at any time and transferred directly to any IBAN number.
Each witness account automatically helps to make the Gulden network more secure by controlling the blocks that the miners offer.
De facto it’s actually not interest but rather a reward for helping to control the blocks.
It should be noted that the more deposits are created, the lesser the returns are. After all, only a maximum number of blocks are mined per day. This can lead to a situation where smaller amounts on shorter maturities can perhaps have no returns at all.
The minimum requirements:
In order to be able to start witnessing, a minimum of 5000 Gulden must be secured for at least three years. For shorter periods there are correspondingly higher amounts needed.
To be able to help witness and thus receive rewards, the Gulden desktop wallet must be online continuously. However, the desktop wallet, unlike a miner, requires almost no computing power and can therefore run on an energy-efficient mini-computer such as a Raspberry Pi. This is easy to set up, making witnessing possible for everyone.
Another option is to export the witnesskey to a cloud service such as G-Dash Cloud. Because the deposit account has its own witnesskey, this can be done in a reasonably safe way. More about this on our Technology page.
The combination of witnesses and miners gives Gulden its unprecedented level of safety. But it also helps to decrease the energy consumption enormously. Gulden is therefore one of the most environmentally friendly payment methods. You can read about that here.
Use this handy witness calculation tool to calculate how much interest can be generated by depositing the Gulden.