Gnosis Pay Unveils Cutting-Edge Reward Program to Elevate Crypto Payments
October 2024 — In a bold move aimed at boosting user adoption and bridging the gap between traditional finance and decentralized payments, Gnosis Pay has launched a new rewards program that offers cashback incentives for users holding GNO tokens, the native asset of Gnosis. This initiative is part of Gnosis’ larger mission to drive the mass adoption of crypto-based financial services by integrating them seamlessly into everyday use cases.
A Vision for Decentralized Payments
Gnosis Pay, launched by Gnosis—a leading blockchain platform focusing on decentralized infrastructure—stands out as the world’s first decentralized payment network (DPN). Its hallmark feature is a self-custodial Visa debit card, allowing users to spend their digital assets like cryptocurrencies as easily as traditional currencies. What differentiates Gnosis Pay from other crypto cards is its deep integration with decentralized technologies, offering users a way to directly spend from their blockchain wallets without intermediaries.
Gnosis Pay is powered by the Gnosis Chain, a community-owned Ethereum-based layer-1 blockchain that is designed for low-cost, scalable transactions. The network’s secure, decentralized infrastructure is backed by a wide array of validators distributed across the globe. By ensuring censorship resistance and credible neutrality, Gnosis Pay guarantees secure and efficient transactions in a decentralized environment.
How Gnosis Pay Works
Users of Gnosis Pay can make payments at any merchant that accepts Visa, making the platform one of the few that allows for true integration of blockchain technology with everyday purchases. By using a self-custodial Safe wallet, users retain full control of their assets, avoiding the need for third-party custodians or intermediaries. This provides the highest security and transparency in handling digital assets.
Moreover, Gnosis Pay is working closely with Monerium, a regulated provider of electronic money. Through Monerium, users can fund their Gnosis Pay accounts using an International Bank Account Number (IBAN). This allows for seamless transfers between traditional banking systems and the Gnosis blockchain, converting fiat euros into EURe tokens that can be used for on-chain payments. Monerium’s role extends beyond IBAN integration—it powers instant SEPA transfers, making the move between fiat and crypto as efficient as possible.
A Game-Changing Rewards Program
The highlight of Gnosis Pay’s recent development is its newly launched cashback rewards program, which was approved by the GnosisDAO governance system. This program, designed to incentivize GNO holders and Gnosis Pay users, offers cashback on purchases made with the Gnosis Pay Visa card. The rewards program is structured in tiers based on how much GNO a user holds in their wallet:
- Holding at least 0.1 GNO gives users a 1% cashback on purchases.
- Holding 1 GNO increases this to 2%.
- Holding 10 GNO provides 3% cashback.
- Holding 100 GNO boosts the cashback to a maximum of 4%.
In addition to these base rewards, holders of the exclusive Gnosis Pay OG NFT—a special token given to early adopters—receive an additional 1% cashback, bringing the total cashback up to 5% for these users. This creates a significant incentive for early adopters and regular users alike.
Weekly Cashback Payouts
The cashback system is automated and user-friendly. Users don’t need to manually claim their rewards, as the Gnosis Pay system distributes cashback weekly. This occurs 5 to 12 days after a purchase is made, with rewards calculated based on the minimum GNO balance held in the user’s account in the seven days prior to the transaction. The cashback is measured in the transaction’s dollar value and then paid out in GNO tokens. The process is overseen by karpatkey, a treasury management firm specializing in Web3 operations.
There is a spending cap for cashback rewards: users can earn cashback on purchases up to EUR 20,000, USD 22,000, or GBP 18,000 per month, ensuring that the program remains sustainable and beneficial for both GnosisDAO and users.
Driving Mainstream Adoption
This new rewards program is part of a broader strategy by Gnosis to drive the mainstream adoption of decentralized finance. According to Gnosis Pay co-founder Friederike Ernst, the initiative aligns with the platform’s Gnosis 3.0 vision, which focuses on bridging blockchain technology with real-world, practical applications. “We’ve been working hard to elevate Gnosis Pay and prepare its functionality for mass adoption,” said Ernst. “This rewards program is not only a step forward in boosting engagement, but also in bringing new users into the ecosystem without significant costs to the DAO”.
Gnosis aims to attract “sticky” users—those who are likely to engage with the platform over the long term—by offering tangible benefits through this program. Additionally, the company is continuously working on improving the user experience with upcoming updates to its platform that will make it even more intuitive and accessible to a broader audience.
Monerium’s Key Role
Monerium, a pivotal partner in Gnosis Pay’s infrastructure, plays a crucial role in enabling seamless fiat-to-crypto transfers. Monerium provides IBANs to users, allowing them to receive euros directly into their blockchain wallets. These funds are instantly converted to EURe tokens—Monerium’s stablecoin equivalent for the euro—without the need for any intermediaries or off-ramping fees. Monerium ensures that all EURe tokens are fully backed by reserves, providing regulatory compliance and a high degree of financial security. This integration allows users to bypass the complexities of exchanges and enjoy fast, cross-border payments on the Gnosis Chain.
Looking Forward
With its rewards program and continuous platform improvements, Gnosis Pay is positioning itself as a leader in the decentralized payment space. By making crypto payments as accessible as traditional banking while offering incentives for engagement, the platform is paving the way for wider acceptance of blockchain technology in everyday financial transactions.
As the crypto world continues to evolve, Gnosis Pay’s focus on user empowerment, decentralization, and real-world utility ensures it remains at the forefront of innovation in the DeFi landscape. The new cashback rewards program is just one of many steps the company is taking to bring the benefits of blockchain to the masses.
