- Crypto exchange, Binance has now debuted an Ethereum mining pool.
- The pool will run commission-free for the first month.
Binance, the leading cryptocurrency exchange, officially introduced the Binance mining pool to its suite of cryptocurrency services, starting with Bitcoin (BTC). On Thursday, the exchange stepped up its mining pool service to include Ethereum users. The crypto exchange also intends a cheaper mining fee than the rate charged by other similar services in the industry. Meanwhile, the development comes as Ethereum users prepare for a proof-of-stake (PoS) era.
Binance Ethereum mining pool launches
Per the announcement, the Ether mining pool service operates through an FPPS or full pay-per-share mining method. This probably entails that the pool users will be receiving both mining rewards and transaction fees in accordance with the hash power they contribute to the Ethereum mining pool. It’s also the same reward payout used in the Binance Bitcoin mining pool. Interestingly, Binance is charging 0.5 percent as a pool fee for the new mining service.
This is about 50 percent cheaper than other Ethereum mining pool services, which charge up to one percent in the fee. As a welcome offer, the crypto exchange mentioned in the announcement that the users would mine the Ethereum coin at a zero fee for the first month. That is, the exchange will be hosting the hash power without requesting any commission during this period. Today’s development is part of the exchange’s broader plan to encourage participation in the crypto mining industry.
Binance pool growth
The Binance Bitcoin pool gained some level of growth in the past month. Following the data from BTC.com, the pool accounted for roughly seven percent of the entire Bitcoin network’s hashrate last month. However, the Ether mining pool’s announcement brings up the question of whether it will note increased participation in the long-run, given that Ethereum is being prepared to transition to the PoS model.
Already, the deposit contract has been launched, marking the start of ETH staking on the network. The next phase of the transition is expected to take place on December 1.