What are Dai Rewards?
Dai Rewards allows eligible customers to earn rewards by holding Dai in Coinbase. To be eligible, you must:
Reside in a country that can receive Dai Rewards*
Have a verified identity on Coinbase
Hold at least $1 (or currency equivalent) of Dai in your Coinbase account
All eligible customers will be automatically opted into Dai Rewards. There is no maximum amount of Dai you can hold. For fees around trading Dai, visit our pricing and fees disclosure page.
* Dai Rewards are currently available in the United States (except Hawaii), the United Kingdom, Spain, Netherlands, France, and Australia.
How are rewards distributed?
Coinbase distributes Dai Rewards every day (as long as you remain eligible). Users can trade funds just like any other crypto on Coinbase without limitations or lockups, but remember, the higher your Dai balance, the more rewards you earn.
A couple of notes:
rewards are distributed within the first 5 business days of receiving Dai in your Coinbase account, and will be distributed every day after initial payout
If you withdraw your entire Dai balance at any time before your first reward, you will still receive the rewards you’ve earned
Can I opt out?
Yes, but if you decide to opt out of Dai Rewards, you will forfeit all earned rewards that have not yet been distributed. If you remain opted out, you will no longer receive Dai Rewards until you opt back in.
To opt out of Dai Rewards:
On web: Go to Settings and select Financial Services. From there, you can toggle the Dai Rewards icon off to opt out
On mobile: Go to Settings on the iOS or Android app and select Financial Services. From there, you can toggle the Dai Rewards icon off to opt out
Why is the pending amount an estimate?
The pending amount shown under Rewards pending is an estimate of the rewards that have not been distributed to your account. After each earning period, the finalized amount of rewards earned are calculated and distributed.
Are there risks with Dai Rewards?
Coinbase is one of the most secure cryptocurrency exchanges, and we take the security of our customers very seriously. While risks associated with Dai Rewards are minimal, mechanisms by which rewards are earned (such as the Dai Savings Rate) may include holding funds in smart contracts. Smart contracts can potentially be compromised by third-parties; however, all smart contracts used by Coinbase go through thorough testing and reviews as well as third-party audits. Like all cryptocurrency, your Dai balance is not insured by the Federal Deposit Insurance Corporation (FDIC) or the Securities Investor Protection Corporation (SIPC). Coinbase assumes no responsibility for the operation of the underlying protocols, and we don't guarantee the functionality or security of the MakerDAO network.
APY + Taxes
What is the current Dai Rewards rate?
As of July 28th, 2020, Coinbase is offering a promotional rewards rate of 2.00% APY. This rate is subject to change. Any changes will be updated in your Dai wallet page and on this page.
Will I need to report earnings on my Dai Rewards?
US customers that are subject to US tax reporting are required to report their earnings from Dai Rewards. US customers that earn over $600 in Dai Rewards will receive a 1099-MISC from Coinbase. You can learn more about the 1099-MISC on the official website of the IRS.
Each reward distributed will populate as a line item in your Transaction history report. To download your transaction history, visit our reports page.
Frequently Asked Questions
Where can I find more information on Dai?
To learn about DAI, visit our Dai Asset Page.
Will I earn rewards on Dai held in my Coinbase Pro account?
No, you can't earn Dai Rewards on Coinbase Pro.
Will I continue to earn rewards if my account is restricted?
If your account has been restricted, you'll continue to earn rewards, however, your rewards may not be accessible during that time.
Will I earn rewards on Dai held in a Dai Vault?
Yes, you can earn Dai Rewards held in your Dai vault. The rewards will be deposited directly into that vault as well as tracked on the "lifetime rewards" ticker.
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