# What is the benefit to holding ANC? And what happens if ANC goes to $0.50?

**URL:** <https://forum.anchorprotocol.com/t/what-is-the-benefit-to-holding-anc-and-what-happens-if-anc-goes-to-0-50/893>\
**Category:** Mechanism\
**Created:** [July 15, 2021, 11:52pm UTC](https://forum.anchorprotocol.com/t/what-is-the-benefit-to-holding-anc-and-what-happens-if-anc-goes-to-0-50/893 "2021-07-15T23:52:18Z")\
**Posts on this page:** 1\
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**Author:** ![Arcadia24](https://avatars.discourse-cdn.com/v4/letter/a/46a35a/32.png) [@Arcadia24](https://forum.anchorprotocol.com/u/Arcadia24)\
**Post date:** [July 17, 2021, 7:44am UTC](https://forum.anchorprotocol.com/t/what-is-the-benefit-to-holding-anc-and-what-happens-if-anc-goes-to-0-50/893/4 "2021-07-17T07:44:52Z")

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On that table, does “Bonus Rewards” would equate to Anchor Earn UST Interest Rate Received?

For simplicity sake, I believe we should just start off with gated yield on Earn and hold off in “Loan Interest Discount” or “Borrow APY” as that would just hurt revenue. Correct me, if I’m wrong.

If so

|ANC Token Holdings|UST Interest|  
| — | — | — | — |  
|0%|10%|  
|4-8%|12%|  
|9-10%|15%|  
|11-15%|20%|

As you can see I lowered the requirement of ANC holdings a bunch relative to Celsius’s system. Don’t want to scare off a bunch of people. Baseline 10% to stay competitive with other DeFi protocols. In reality, I do want a higher ANC Token requirement, because the reality is if this is implemented, ANC becomes an appreciating asset and not a depreciating one. So it would actually be easy to maintain your account level. In my opinion, ANC would grow more than the Anchor Earn Rate.

A question brought up in other threads though, is what is considered to be a part of the ANC portfolio? ANC in LP Tokens? ANC in Staked? ANC in your Wallet? etc.

I guess we should continue on a single thread about this topic as there are too many now:

> [@Make ANC more valuable by giving premium yield only to ANC holders](http://forum.anchorprotocol.com/t/make-anc-more-valuable-by-giving-premium-yield-only-to-anc-holders/852/20):
>
> Anything that creates demand for ANC and/or reduces supply would benefit the price of ANC. So yes, your suggestion would do both and definitely help support the price of ANC but we don’t know how much it will help without knowing exactly how much demand it will create.

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