blindmixer works similar to a gift card provider. Instead of gift cards, blindmixer provides you with coins, which you can trade for bitcoin. However, instead of taking a fee when conversing, as most gift card providers do, blindmixer will over time slowly decay the value of unclaimed giftcards. Every 4 weeks all outstanding giftcards will have their value reduced by 0.01 (1%) with respect to their original value. There is a 1 month grace period before any decay is applied so that you will always have at least 4 weeks to spend your funds without any additional fees. This allows us to run all of our services at cost, which provides clients with the lowest possible fees.
There are a number of reasons why you would want to decay older coins. The most significant one is already addressed above: over time, through entropy, people will lose access to their blindmixer wallet, forget about it, or have other reasons that prohibit them from accessing their coins again. Given enough time, this could accumulate to relatively large sums of money.
Considering the fact that blindmixer does not rely on fees from outgoing transactions or hookins to make a profit, we can offer extremely competitive fee rates, better than any exchange could conceivably do. Not only is this advantageous for the client: (e, you!), but this allows blindmixer, despite the fact that it consists of centralized entities, to be enourmously superior to other (decentralized) wallets in a vast number of aspects.
However, most importantly, scheduled decays mitigate the most significant business model: Running off
exit scamming, for lack of a better term with users' funds after establishing a decent amount of trust. Were we not to regularly decay old giftcards and collect these so-called "dead funds", this would become extremely lucrative as it is a given that over time the custodian will build up a lot of these types of funds.