As part of a proposed reorganization of its rewards program, cryptocurrency exchange Gemini is now proposing that its users face a potential 70% reduction in promised Bitcoin (BTC) payouts. According to a detailed report, the proposed reductions would apply to a range of participants who have been taking advantage of Gemini’s Earn service.
Gemini is proposing to reduce the annual percentage yield (APY) to participants in its Earn service, from 25% to 7.5%. This is a substantial reduction from the promised payout – for example, an account with $100 worth of BTC in it would receive $25 in interest payments instead of the potential $75 that was promised.
The reorganization is necessary, according to Gemini, because of a “changing regulatory landscape” that it argues makes the previous rewards program “uneconomical”. Gemini also cites a reduced demand for its services, which means that it must adjust the rewards payout accordingly.
The proposal is only in the proposed stage and is still open for discussion. Gemini encourages its users to speak up and reach out to them with any questions or concerns they have.