Crypto Exchange Binance Launches Dedicated Staking Platform

Major cryptocurrency exchange Binance has launched a dedicated staking platform, according to a company announcement published on Sept. 26.

The new service will enable Binance users to deposit their token holdings and earn staking rewards, but without having to set up their own nodes to fulfill minimum staking amounts and/or time lengths.

A deterministic algorithm selects block validators based on the number of tokens a given node has staked in their wallet - i.e. deposited as collateral in order to compete to add the next block to the chain.

Staking holdings in a PoS network can yield significant percentage returns, depending on the size of the participant's stake.

In its announcement, Binance has revealed plans to update its staking calculation methodology on Oct. 1, in order to establish what it deems to be a more accurate and fair distribution of the rewards.

Not all cryptocurrency commentators perceive Binance's launch of staking services as a positive moment for the industry.

"You literally don't have to do anything. Your funds on Binance automatically participate. You can still trade as you normally would."

"That's why RIP for all StakingaaS Exchanges gonna eat it, custodial wallets gonna eat it, even PoW pool gonna eat it, and then the remaining is a race to the bottom Bad business, just bad.".

As reported, Binance had apparently inadvertently earned staking rewards on its Stellar holdings this summer.

Once it had discovered the profits, the exchange chose to launch support for staking the token as well as to distribute the already-accrued earnings among users.