Annual Interest on DigitalNote Blockchain Deposits
As you may know, DigitalNote is an anonymous currency on par with the technology of other privacy centric CryptoNote coins like Monero and Aeon. What you may not know is that DigitalNote has a other more advanced features like a deposit function built into its blockchain and even encrypted messaging. Today we will talk about the blockchain deposit feature and how to take advantage of it with your XDN to make interest on your holdings! (who doesn’t want free money?)
With the official DigitalNote wallet you can choose to lock any amount of your XDN holdings as a deposit on the blockchain and earn interest on it. The annual interest rates vary from 0.4% to 1.094% depending on how long you choose to lock your deposit. The longer your deposit is locked on the blockchain, the higher the annual interest rate percentage you receive. Once you have made a deposit on the blockchain for a certain amount of time, it is locked in until that time.
As you can see from the screenshot below, when you click on the Deposits tab of the wallet you can specify the details of the deposit you would like to create.
You can type in the amount of your holdings that you would like to deposit and choose how long the network will lock it on the blockchain. The wallet will calculate an annual interest rate dependent on how long the deposit is locked on the blockchain and show you how many XDN you will receive when the deposit is unlocked. Click Deposit and your XDN are now locked on the blockchain earning interest! When your deposit has matured you will be able to withdraw your deposit plus the interest you accrued by clicking on Withdraw in the same tab.
Keep in mind that the interest rate is an annual interest rate, so for example if you deposited 50,000 XDN for 1 month (~11000 blocks) at .40% interest, you would receive your original 50,000 XDN back plus 16.66 XDN. Remember, the longer your deposits are locked on the blockchain the higher your earnings will be on your locked funds. Just make sure you don’t need to use the coins while they are locked on the blockchain or only put in a specific amount of your holdings for savings. Try using the feature yourself and check it out!
In a future update the deposit feature will actually work to protect the network by providing PoA (Proof of Activity) security. That means that the DigitalNote network will be even more secure with both deposits and mining (Proof of Work)! That’s it for now! Come back for more DigitalNote discussion on encrypted messaging, and updates on additional features that are planned for 2017 and 2018.