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Binance Launches New Staking Platform: Earn crypto through PoS

Binance Launches New Staking Platform: Earn crypto through PoS
By We Play Coins
Added on Sep 27, 2019

Binance launched their official Staking Platform as a value-added service to Binance users yesterday. The platform makes it easy to stake crypto for multiple cryptocurrencies.

What is Staking?

Staking is the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network. Users are rewarded for simply depositing and holding coins on Binance as they normally would. Get involved if you wish to learn more about the consensus mechanisms of each project, how staking plays a role in the security, operations, and governance of a blockchain.

The platform allows users to transact, trade, participate, and utilize tokens on Binance normally, all while earning rewards based on daily balance snapshots for each staking-supported chain. Users receive rewards distributions monthly, calculated based on a user’s pro-rata share of total balances held by Binance users that generated the corresponding staking rewards during the given month.

Why stake with Binance?

With staking on Binance, users can receive staking rewards all while just being a regular Binance user. For all users, this means more freedom & accessibility into staking participation for all chains, without giving up full liquidity.

Lower Barriers

Users will earn staking rewards without needing to set up nodes, worry about minimum staking amounts, time lengths, or any catches. Just keep a balance in your Binance account and earn!

Additional Bonuses

Additionally, Binance will support, in conjunction with project teams, additional promotional rewards to incentivize users to stake on Binance. These rewards will be distributed on a case-by-case basis.

Binance current supports staking for many cryptocurrencies, including the following: NEO (NEO/GAS), Ontology (ONT/ONG), Vechain (VEN/VTHO), Stellar(XLM), Komodo (KMD), Algorand (ALGO), Qtum (QTUM), & Stratis (STRAT).

Binance will also update its staking calculation methodology at 2019/10/01 0:00 AM (UTC) for all staking reward distributions, in order to provide a more accurate distribution of these rewards. User balances will now be derived by taking hourly snapshots to calculate a final snapshot for each day (average of 24 snapshots each day), instead of taking a single daily snapshot at a specific time, for the fairest distribution of rewards to users.

Deposit supported coins into your Binance.com account and start earning today! Other coins with rewards supported by Binance are:

  • Hold NEO to earn GAS
  • Hold ONT to earn ONG
  • Hold VET to earn VTHO
  • Stake XLM on Binance
  • Stake KMD on Binance
  • Stake ALGO on Binance
  • Stake QTUM on Binance
  • Stake STRAT on Binance

Will Binance be charging any fees?

Binance will not charge any fees for staking. All rewards they receive will be shared to the users. However, one cannot ensure or guarantee any rewards, but they promise to try to optimize such that users get an optimal amount of rewards.

Can I trade while staking?

Yes, you will always be able to trade any coins you have. However, once a trade is filled, the amount of staked balance will change, and the corresponding rewards that you will earn from daily snapshots will change accordingly. You can trade to accumulate supported staking coins, as well as sell them at any time.

How can I stop staking? Is there a lock-up period?

Users accrue staking rewards from simply holding coins on Binance. Simply sell or withdraw any supported coin at any time to stop receiving staking rewards on Binance. Currently, there are no lock-up periods as of this time for the current supported coins, to reduce the friction for user participation in staking. Instead, there is a 24-hour “wait” period before balances are accounted for during the daily snapshots, to deter manipulation of balances within seconds of snapshot times.