Binance.US adds staking for Algorand and Cosmos
Binance.US announced this week that it will introduce staking rewards. Algorand (ALGO) and Cosmos (ATOM) will be the first tokens available for staking to U.S. based traders with others to follow.
Network rewards
By offering staking services, exchanges are lowering the barrier to entry for participating in token governance. A USD on-ramp to staking allows more people to earn rewards for contributing to the network by promoting network security, reducing validation costs, and simplifying consensus mechanisms.
Other U.S. exchanges such as Kraken and Coinbase have so far made staking available for Tezos (XTZ) only. As more proof-of-stake tokens list on the leading exchanges, exchanges will be incentivized to continue to add staking services.
Catherine Coley, CEO of Binance.US said that “Binance.US strives to create opportunities for more people to get involved in the digital asset marketplace and most importantly, help both crypto-curious and experts enjoy and benefit from being a crypto holder. Staking is just one of the many attractive ways we are bringing new people into the digital asset marketplace. We consider this another step towards achieving our goal of financial inclusion for an ever-growing pool of people.”
What is staking?
Staking involves users holding funds in a cryptocurrency wallet to support the operations of a blockchain network. By doing so, they receive a reward in that coin of choice, which in this case is Algorand (ALGO) and Cosmos (ATOM). Most crypto users (70%) are focused on holding onto their assets rather than trading them, so staking provides an ideal solution for holders to earn rewards for supporting the operations of a blockchain network.
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News, Khareem Sudlow