Coinbase announced that it has implemented Tezos (XTZ) staking on its retail platform for its US customers to benefit from its rewards.
Staking crypto improves the protection and power of the underlying blockchain. Also, helps investors earn money when they participate in a particular asset network. And they will get rewarded with more network assets in the exchange.
As per the release, Coinbase is now staking Tezos on behalf of its customers and distributing rewards directly to its users.
Coinbase said at the launch that:
“Coinbase is offering an easy, secure way for anyone to actively participate in the Tezos network. While it’s possible to stake Tezos on your own or via a delegated staking service, it can be confusing, complicated, and even risky with regard to the security of your staked Tezos. We’re changing that with staking rewards on Coinbase.”
Coinbase’s current estimated annual return for Tezos is 5%. Once the initial holding period of approximately 35–40 days has elapsed, they will receive rewards on the account every 3 days.
The company further stated that:
“Customers can earn a bit of Tezos simply by learning about the token and taking a few quizzes. Through Coinbase Earn, you can earn up to $6 of Tezos, which Coinbase can then start staking on your behalf.”
Tezos will be available in the customer’s account, and they can choose to opt-out anytime. Coinbase’s rate of return is an estimate based on the rewards they have provided over the past 90 days.
The exchange also made it clear that it would allocate the return to its clients and retain a part of it as a fee.