Coinbase announced today that they will be staking Tezos on behalf of customers, paying all rewards straight into user accounts.
The initiative will make it nice and simple for customers to stake their Tezos, without having to learn how to operate an external GUI.
Who can take part?
Tezos staking within the Coinbase platform will be available automatically to eligible customers from the United States.
How do I start staking?
If you meet the criteria for eligibility you don’t need to do anything, except simply hold Tezos in your Coinbase account! You don’t have to download another app, use another website, or even click a button.
If you don’t currently hold any Tezos on Coinbase, simply deposit Tezos coins that you already own, or purchase some via the platform.
Coinbase estimate that the current return for staked Tezos to be around 5% annualized.
There is an initial holding period of 35-40 days required to begin receiving rewards, so you should make sure you can commit to holding your Tezos. After this holding period, staking rewards will be paid out every 3 days.
Staking rewards can be tracked real-time, within the Coinbase app.
Tezos is a proof-of-stake smart contracts platform, which allows its stakeholders to vote for changes to the protocol.
Tezos holders who stake their coins in a process (dubbed “baking”), earn rewards for processing and verifying transactions on the network.
The platform was initially released in June 2018.
Alejandro is a blockchain writer and consultant who has been involved in the space since early 2016. Being extremely passionate about this emerging technology, he has written content for a myriad of projects and news outlets.