Cryptocurrency service providers need to come up with new ways to keep customers affiliated. Coinbase, the popular exchange and wallet provider is doing so by introducing staking rewards.
Staking is an integral part of the altcoin industry. Many currencies do not just rely on mining, but also let token holders earn passive interest by keeping their coins in place.
Tezos Staking Comes to Coinbase
To this date, there are few platforms that let users stake currencies online. Coinbase can now be added to that list.
The company wants to offer customers more ways to earn rewards by holding cryptocurrencies. The first currency to be supported is Tezos, or XTZ.
In the blog post, Coinbase confirms this will only apply to eligible US customers. International clients will seemingly not receive access to this functionality for the foreseeable future.
Coinbase will stake XTZ on behalf of its customers and distribute rewards accordingly. It is expected users pursuing this option will receive roughly 5% of their balance in staking rewards.
In the Coinbase app, users will see their rewards increase in real-time. After the initial holding period of six weeks expires, users will receive rewards every three days.
Exploring this option still allows users to move their Tezos to a different address if they wish to do so. Opting out can be done at any given time, which is crucial to keep in mind.
It is an interesting direction for the company. Centralized platforms like these often restrict user control in many different ways.
By introducing staking rewards, Coinbase’s team shows things can be done differently.