Binance US, the American subsidiary of the world’s largest crypto exchange, is now offering cryptocurrency staking services to its customers – a move the company expects will make it more competitive with other US-based rivals such as.
Staking services are now available for Binance US clients who own one of seven selected proof-of-stake cryptocurrencies: Twitter Account will be provided with more options in the future.(BNB), (SOL), (AVAX), (ATOM), The Graph (GRT), (LPT) and Audius (AUDIO). According to the company
Proof of Involvement is a consensus mechanism used by many blockchain networks that requires users to lock their coins in order to be allowed to validate the next block. Upon validation, these users typically receive a reward tied to the transaction fees charged by that block.
The more coins users lock, the better their chances of validating a block and thus generating more rewards. However, many blockchains have minimum funding requirements, meaning smaller holders must pool their funds if they want to earn rewards.for example, requires a minimum of 32 ETH (worth about $57,000 right now) to participate in staking.
Cryptocurrency exchanges have since become one of the primary tools for users who have less than the minimum required to participate in staking and earn rewards by joining a pool.
Binance US’s service, similar to that of its competitors Coinbase and Gemini, allows anyone to stake at different rates depending on the cryptocurrency they choose. For example, while the company promises a 6.4% annual return on its native BNB token, it offers 18% APY for staking for Livepeer – a decentralized live video streaming network.
However, these rates are subject to change according to “estimates calculated based on average staking rewards accrued over the last 90 days,” the company said.
Staking on Binance US does not appear to have a lock-up period, meaning stakers can de-stake their coins at any time. However, it charges some commission for “facilitating all technical staking requirements”.
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