Digifox Pro: Why It Temporarily Costs Money To Access Some Services In Digifox
March 15, 2021
At Digifox, we believe in giving everyone equal access to services. We don’t believe in limiting functionality to our users by requiring deposit minimums or other arbitrary limitations. So today, I want to briefly explain why it costs money to gain access to Digifox Pro immediately.
TL;DR - Wallet Generation Comes At A Major Cost Right Now
Since our launch in June of 2020, we’ve grown a user base of over 7,500 unique users. It’s been an absolute privilege for us to see people using the app, whether it’s earning interest on savings or buying cryptocurrencies. However, many may not be aware it comes at a cost.
Each time we generate an account or “smart wallet,” we are deploying a technology known as a smart contract on the well-known and reputable Ethereum Network, the second largest blockchain protocol on the planet. These smart wallets cost us as a company, as we have been covering the cost for our users. In some cases, it can cost as much as $50 or $70 per wallet.
According to Etherscan, a public tool to determine network traffic, the cost to store data on the Ethereum blockchain has been growing steadily throughout the summer. This has led wallet generation costs to accelerate to over 20x the amount it originally cost us during our private beta.
As Founder & CEO, I realized this would crush Digifox as a company if we kept this up. Luckily, since inception, I had been making additional distributions to the business in order to cover these costs with my own money, so we have not used any funds from our equity crowdfund through WeFunder to cover this expense.
To be entirely honest, we certainly anticipated gas prices to rise, but we didn’t foresee them getting this high so quickly. So, in the short-term, I not only committed to covering the cost, but we went directly to the drawing board to come up with a solution.
Digifox Pro Vs. Digifox
We quickly realized we have distinct categories of users on Digifox, people who want to earn the highest yield and buy major cryptocurrencies and others who want to tap into DeFi (Decentralized Finance).
These two groups are incredibly important to us as a company, and we want Digifox to service both not only in the future, but right now.
Therefore, we’ve built a way where users can access both Celsius, our major deposit partner, and tools to buy cryptocurrencies, without the need to generate a wallet. Allowing users to skip wallet generation and access these services instantly, for free. This way, users who simply wanted to earn 10.89% interest on their savings or buy cryptocurrencies like BTC, ETH, LINK, or other similar well-known cryptos can do so without any upfront costs.
But for those who want access to early-stage tokens and decentralized lending pools like Compound, we’ve created Digifox Pro, an enhanced version of the app that utilizes smart wallets.
It costs $50 to join Digifox Pro immediately, however, if you don’t mind waiting, you can pay only $25 and we’ll upgrade your account in under 24 hours. And if neither cost is affordable, you can always join the waitlist, which will put you in the queue to upgrade your account for free at an undetermined later date. We want to make this feature as accessible for our user base as possible, while remaining a sustainable business.
Digifox - Earn interest & buy crypto
Digifox Pro - Buy up to +50 tokens, access decentralized pools, and more!
Simply put, Digifox still allows you to earn high rates of interest on your savings and purchase major cryptocurrencies without any initial sign up costs, period.
Here’s The Good News Regarding Gas Fees
The Ethereum network is undergoing some growing pains with the massive spike in usage over the past several months. But we’re confident we’ll be able to make the best of it.
First, we’ve decided to prioritize 75% of our time towards building and integrating services, such as automated bank deposits, that will be accessible to all users, irrespective of whether or not you have Digifox Pro. So if Digifox Pro isn’t affordable, or you end up having to wait for your account upgrade, you won’t be missing out.
Second, the Ethereum network is showcasing positive signs of change. Whereas long-term scaling solutions like ETH 2.0 are up to a year or more away, many protocols that consume large amounts of bandwidth on the network, such as Tether, have begun shifting to layer-two solutions to reduce their own fees and remove demand on the main network. These types of moves by large players in the space have left incredibly positive effects, and I’ve even sparked conversations with Hayden Adams, the Founder of Uniswap, to explore layer two solutions for the upcoming launch of Uniswap V3. If this were to happen, we’d likely get back to a point where we could upgrade everyone to Pro, as Uniswap consumes over 25% of the network traffic on average. And on top of this, we’re exploring layer-two solutions to bring payment and trading network fees to zero.
And finally, we’re working to bring support for more tokens through both our existing and new partners. So in the meantime, you won’t need to have a smart wallet in order to access the latest and greatest projects.
In conclusion, the future is looking bright for Digifox, and we’re incredibly excited to have you join us in this journey!
Sincerely, Nicholas Merten, Founder & CEO of Digifox
Digifox is an all-in-one finance platform. Earn 50-100x more on your interest, buy crypto, and send money globally.