Coinbase announces staking rewards on Tezos

If you are a US-based customer of Coinbase and possess Tezos holdings here is a chance to earn some staking rewards on every Tezos you hold.

One of the oldest running and most popular cryptocurrency exchange platforms we know today, Coinbase is on a constant lookout for enhancing the customer service experience. As Coinbase CEO claimed last month, it is running a profitable business because of the ingenious products and services it offers.

And since the profits are purportedly plowed back into the company to make the service a notch higher, Coinbase has come up with another appealing product to increase not only the exchange’s profitability but also Tezos’, this time.

So, what are staking rewards anyway?

According to its official blog post dated 6th November 2019, Coinbase is rolling out leisurely, convenient, and secure means for us American users to earn staking rewards on Tezos. So, what is staking, really? It is a means of collecting income with cryptocurrencies by contributing to the network of a particular asset, in this case, Tezos (XTZ).

As the ultimate goal of Tezos to get its token holders together to make decisions that improve the platform, staking Tezos eventually makes the supporting blockchain technology stronger and more efficient.

According to the post, the estimated return for Tezos staking is around five percent (5%). Once the initial holding period exceeds thirty-five to forty days, Coinbase will deposit the rewards in the respective user accounts directly. The Tezos holdings in the wallet remain extremely secure, and the user can choose to opt-out of the rewards program anytime.

So far so good. Now how do we start?

How to kick start these staking rewards? Deposit all your Tezos holdings from an external wallet to the Coinbase account or simply buy the asset on the exchange and start earning rewards.

And for those who haven’t heard or read much about the crypto, Coinbase has a way to get them on board too. With the Coinbase Earn Tezos campaign, amateur traders can learn about the asset by taking a few surveys and earn up to six US dollars ($6) worth of Tezos, which Coinbase will eventually stake on the user’s behalf.

Thus, expert or not, Coinbase is determined to remain in good books of its American customers, with Tezos staking rewards being the most recent example of the same. Earlier last month, it also enabled its US-based customers holding USD Coin (USDC) to earn over one percent (1.25%) annual percentage yield.