The BankX Silver Dollar (XSD) is the first stablecoin to pay you interest for the time it is in circulation. Interest begins accruing on the day you mint XSD and is paid to you when you redeem your collateral (pay back XSD). The longer the XSD you minted is in circulation, the more interest you earn. Interest is paid in the form of BankX Tokens.
BankX pays this interest by inflating the BankX cryptocurrency. Central Banks inflate currencies to distribute fiat currency however they like. Bitcoin inflates its cryptocurrency each block in order to pay miners in the network. BankX inflates the supply of BankX Tokens to pay you interest for minting XSD.
This economic strategy incentivizes the minting and continued circulation of the BankX Silver Dollar ensuring a healthy token economy. Since BankX Tokens are required to mint XSD, this reduces the supply. The token supply reduction from minting outpaces the inflation used to pay interest.
The BankX Certificate of Deposit (BCD) is like a traditional bank CD but was designed to allow you to earn a much higher yield. By staking your BankX Tokens in a BankX Certificate of Deposit, you earn interest in the form of more BankX Tokens. The longer you stake, the more interest you earn.
Central Banks inflate currencies to distribute fiat currency however they like. Bitcoin inflates its cryptocurrency each block in order to pay miners in the network. BankX inflates the supply of BankX Tokens to pay you interest for staking BankX Tokens.
This economic strategy incentivizes the staking/holding of BankX Tokens, reducing the supply, which is designed to allow BankX Tokens to increase in value over time. The token supply reduction from staking far outpaces the inflation used to pay staking rewards.
