Mudrex, a Web3 company that offers crypto investment services, on Tuesday, June 11, announced a new rewards initiative for its user base in India. The service, called ‘Earn’, allows Mudrex users to earn up to 10 percent annual income on their crypto holdings without any lock-in period. The crypto community in India has been taking gradual steps to engage with the sector, given the skeptical approach to digital assets in the country. Mudrex’s new initiative seems to be a move aimed at retaining Indian users on its platform.
In the first phase of rolling out this service, Mudrex has listed 50 cryptocurrencies including Bitcoin, Ether Solana, Cardano and Polygon, which can earn up to ten percent in rewards to holders. The reward percentage for holding each of these different cryptocurrencies varies.
“To participate in Earn, users must maintain a minimum balance of the supported coins in their Mudrex wallets. By participating in a mix of short-term ventures such as margin financing and allocating funds to secure, long-term DeFi protocols, Mudrex aims to deliver a steady stream of fixed annual returns of a minimum of 0.023 percent and a maximum of 10 percent on their investments,” the company said in its statement.
India’s crypto community has grown to a user base of 19 million, a CoinSwitch report estimated in December last year. Nearly 75 percent of crypto holders were between the ages of 18 and 35. However, due to India’s crypto tax laws, the density of India’s crypto user base is prone to peaks and troughs.
In a separate report the same month, WazirX claimed it saw a 90 percent drop in crypto trading volume as India awaited clarity on regulatory implementation.
Crypto earnings in India are taxed at a maximum of 30 percent. The government also charges one percent TDS on every crypto transaction, a rule that has fueled negative sentiments among the investment community since it came into effect in 2022. Despite several urgings from the finance ministry, these crypto laws remain unchanged in the country. This situation has led many crypto players in India to come up with special offers to keep their users connected to their platforms.
For example, in November 2023, Indian crypto exchange CoinSwitch rolled out its own ‘Earn’ feature, allowing users to ‘lock’ their crypto assets and earn rewards in the form of cryptocurrency. The platform had said at the time that this was the exchange’s way of allowing its users to monetize their holdings without having to sell them.
Speaking about Mudrex’s decision to launch this initiative, CEO Edul Patel said: “We aim to enable our users to maximize their crypto earnings by eliminating fees and simplifying the process.”
According to the company, the beta phase of the Earn program has already attracted more than 5,000 users.
“We also plan to expand the range of supported coins, continuously improving the value proposition of our platform for users,” Patel added.
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