Bitcoin

Coinbase launches Tezos rewards for users in the UK and some EU countries

The big crypto exchange Coinbase introduces Tezos Staking Rewards (XTZ) for users in the UK and three European countries.

In an announcement on May 28, the exchange revealed this Users in the UK, France, Spain and the Netherlands are now eligible to earn interest on their XTZ holdings which are deposited and maintained on the stock exchange.

According to Coinbase, this feature has been around since the U.S. launch in November Users have earned over $ 2 million in XTZ Rewards.

What is at stake?

Coinbase launches Tezos rewards for users in the UK and some EU countries
Coinbase launches Tezos rewards for users in the UK and some EU countries

In block groves that use a proof-of-stake system By staking out network participants can earn a kind of “interest” in their sharesprovided they are ready to save their money to keep the network running.

The system works because, unlike proof-of-work systems like Bitcoin (BTC), nodes in a PoS network serve to validate blocks instead of dismantling them.

The validators of each block in the network are algorithmically selected based on the number of tokens a particular node has in its wallet, that is, they are deposited as a guarantee of competition for the addition of the next block to the chain.

Token holders can use a delegated stakeout service or can actively participate in staking their tokensor, as with the service offered by Coinbase, use a stakeout function integrated into a crypto exchange.

Depending on the participant’s commitment, the stake can bring a significant percentage of the return: Coinbase states that the estimated current annual return for Tezos shares on the stock exchange is around 5%.

Stakeout services, both for retail and for institutions

Coinbase also supports the participation of global investors using their institutional assets custody department, Coinbase Custody.

At the end of retail Large exchanges like Binance have chosen to launch dedicated staking platforms instead of integrating the function like Coinbase.

Something Have members of the crypto community criticized in the past, the increasing prevalence of central stakeout services operated by industry leaders, and have specified Other possible disadvantages of use as a service business model.

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