Interest-Bearing Mint

Interest-Bearing Mint

Interest-Bearing Mint is a Token-2022 extension that stores an interest rate in the mint. The displayed UI balance grows continuously for the holder. On-chain supply does not change — it is pure UI accounting, not actual token issuance.

Use cases

• Liquid-staking tokens with built-in yield display
• RWA bonds with interest payment over the holding period
• Treasury tokens with declared yield rights

Technical detail

The mint stores a current_rate in basis points and a last_update_timestamp. Wallets compute, on every display: displayed_balance = raw_balance × (1 + rate × time_elapsed). The raw_balance stays unchanged.

Tax grey zone (Germany)

The German Federal Ministry of Finance’s letter of 6 March 2025 treats stablecoins like other crypto assets for tax purposes but does not unambiguously clarify whether the UI-multiplier growth counts as ongoing income under section 22 of the German Income Tax Act, or as a gain at sale. Holders of interest-bearing tokens should clarify with a tax advisor.

Deep dive

Pillar Token-2022 explained.