Mudrex, a Web3 firm that offers crypto investment services, announced a new reward initiative for its userbase in India on Tuesday, June 11. Called ‘Earn’, this service will let Mudrex users earn up to 10 percent annual income on their crypto holdings without any lock-in period. The crypto community in India is taking gradual steps towards engaging with the sector given the nation’s sceptical approach on digital assets. Mudrex’s fresh initiative seems to be a move aimed at retaining Indian users on its platform.
In the first phase of the roll out of this service, Mudrex has listed 50 cryptocurrencies including Bitcoin, Ether Solana, Cardano, and Polygon — holding which can earn up to ten percent in rewards for the holders. The reward percentage for holding each of these different cryptocurrencies differ.
“To participate in Earn, users need to maintain a minimum balance of the supported coins in their Mudrex wallets. By engaging in a mix of short-term ventures such as margin funding and allocating funds into secure, long-term DeFi protocols, Mudrex attempts a steady flow of fixed annualised returns from minimum 0.023 percent to maximum 10 percent on their investments,” the company said in its statement.
The crypto community in India has swelled to a userbase of 19 million, a report by CoinSwitch had estimated in December last year. Almost 75 percent of the crypto holders were aged between 18 years to 35 years. Owing to India’s crypto tax laws however, the density of India’s crypto userbase is prone to seeing highs and lows.
In a separate report same month, WazirX claimed that it saw a drop of 90 percent in crypto trading volume as India awaited clarity in regulatory deployments.
Crypto incomes in India are taxed at up to 30 percent. The government also charges one percent TDS on each crypto transaction, a rule that has stirred negative sentiments among the investor community ever since it came into existence in 2022. Despite several urges to the finance ministry, these crypto laws remain unchanged in the country. This situation has led to many crypto players in India to come up with special offerings that could keep their users connected to their platforms.
For instance, in November 2023, Indian crypto exchange CoinSwitch rolled out its own ‘Earn’ feature, in order to let users ‘lock-in’ their crypto assets and earn rewards in the form of cryptocurrencies. The platform had said at the time, that this was the exchange’s way to let its users monetise their holdings without having to sell.
Speaking about Mudrex’s decision to launch this initiative, its CEO Edul Patel said, “We aim to empower our users to maximize their crypto earnings by eliminating fees and simplifying the process.”
As per the company, the beta stage of the Earn programme has already managed to attract over 5,000 users.
“We also plan to expand the range of supported coins, continuously enhancing our platform’s value proposition for the users,” Patel added.
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