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Blink Wallet Adds Inactivity Fee to Custodial Accounts, Accelerating Migration to Self Custody

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Blink Wallet Adds Inactivity Fee to Custodial Accounts, Accelerating Migration to Self Custody

Bitcoin Magazine

Blink Wallet Adds Inactivity Fee to Custodial Accounts, Accelerating Migration to Self Custody

Blink Wallet announced a new $1 a month inactivity fee, aimed at custodial accounts that have not logged in to the app in over 12 months. 

The fee, which only affects custodial accounts, serves to relieve the burden of inactive accounts on the startup. According to the announcement, these inactive accounts have ongoing costs such as “ledger and infrastructure, retention of verification records, compliance monitoring and reporting, and support claims.” These costs are in turn borne by active user accounts via normal in-app transaction fees. 

A source familiar with the matter told Bitcoin Magazine that around a hundred thousand such accounts fit the inactive category at the time of the first fee charge, with an aggregate balance of over $800,000. The first fee pulled in about $45,000, mostly from accounts that had dust amounts of bitcoin inactive for over a year. None of these figures could be independently verified. 

Blink Wallet may be one of the most popular Bitcoin wallets in the world, favored by advocates of Bitcoin Circular Economies across Latin America and Africa. Designed for an audience not already familiar with Bitcoin, the wallet first came to prominence as the ‘Bitcoin Beach Wallet’. It grew out of El Salvador’s initial wave of Bitcoin adoption, choosing design principles similar to Wallet of Satoshi, which had seen viral success in earlier years. The wallet was initially custodial and oriented around fast Lightning payments, with the innovative option of hedging value in USD via the Stable Sats feature.


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