Do you have any example of a service that had an actual reason for offering a reward on Bitcoin deposits?
Just about any shitcoin platform that was offering to exchange Bitcoin for their new ''revolutionary'' token that earn with staking, or yield earning platforms with high percentage interest rate that later shut down in 2022.... they all asked Bitcoin to keep it ''safu''.
Well that doesen't fit the bill for what we'd call an 'actual reason'. Shitcoin platforms are trying to lure investors in for the sole reason of earning yield or making huge returns, there is no reason why they'd need Bitcoin from users in the first place to 'keep the platform safu'. It should be safu with or without customers funds since those are exactly that.. customer funds.
We on the other hand
need volume at the beginning in order to offer better privacy. If any of the previous explanations were not clear enough or you feel like something doesen't make sense please let us know and we will explain again.
Nobody is saying you are trying to do the same thing like them, but it makes me wonder how are you going to sustain paying 10% rewards to everyone with notes and still make any profit for yourself.
I am not saying it won't attract some attention, but it can end up very bad for everyone with one small mistake, so again we should trust you and hope nothing bad will happen.
My question is, are you sure you will be able to sustain paying 10% rewards and how?
This campaign will run for a fixed time until we get to a certain number of deposits (Anonymity Set) or total
BTC volume that went through the platform. Assuming we will go ahead we expect this to last between 1 to 3 months, so our costs will be somewhere between 2 and 6 BTC. Whatever the final amount will be we believe this is a very small price to pay for what we will get in return. After we reach our Anonymity Set goal Whirlwind will undeniably offer the best privacy you can get on Bitcoin, and by default that will translate into more customers.
Why would we try to make a profit now when we know for a fact that our service is missing something and customers with 10
BTC+ cannot use the platform efficiently (meaning withdraw everything at once immediately without being a privacy risk). Doesen't it make more sense to invest a bit more now and take the lead for good while we basically have no competition? Even if our competitors realize they need to make changes and switch to the same model afterwards they would be too far behind to ever compare to the privacy we're offering.
We afford to pay these rewards and the signature campaign for many months before we need to worry about turning a profit so this is not a concern at the moment. It also seems that everyone who's using the service donates a pretty good amount so this gives us reasons to believe that once we achieve our Anonymity Set goal this will turn into a very profitable business.
Our only concern right now is reaching that level. If we are able to do that then Whirlwind will definitely be a big success, if we don't it will most probably be a fail. This is a risk we knew and accepted when we started developing the platform on this model.