Coinbase Now Offering Staking Rewards
On November 6th, Coinbase announced that US based customers can now stake Tezos (XTZ) on the platform for every token held. The popular exchange will stake Tezos on behalf of their customers and will distribute rewards directly to user accounts.
Staking allows users to earn more crypto by participating in the network of a coin that offers it. When someone stakes their coins, the asset becomes more secure and efficient, therefore rewarding the participating user as they are helping the network get stronger.
Staking can be confusing and complicated for some users, therefore Coinbase has created a simple solution to this problem by allowing users to stake their Tezos directly on their platform. The rewards will be distributed every 3 days, showing users the quick benefits of staking, while having to do nothing in return. Coinbase has stated that with staking rewards:
“You can begin earning rewards on your crypto. The current estimated annual return for Tezos staking on Coinbase is ~5%. You’ll see your pending rewards increase in real-time in the app, and once your initial holding period completes (35–40 days), you’ll receive rewards in your account every 3 days.
You will always maintain control. Your Tezos always stays in your wallet; you just earn rewards while keeping your crypto safely on Coinbase. You can opt out any time you want.”
The current return rate is a projection of what Coinbase has generated over the past 90 days, although the Tezos network sets the return rate depending on the number of participants.
Coinbase will keep a small percentage as commission and return the rest of the profits to user accounts.