Coinbase has been on a roll lately – focussing on different ways for customers to earn rewards by holding crypto. Today, in a blog post, they announced staking rewards on every Tezos (XTZ) held on Coinbase by eligible US customers.
What are the eligibility requirements for staking?
- You must have your identity verified
- You must live in the US (New York and Hawaii residents are not eligible)
- You must have the minimum balance needed for that specific cryptocurrency. You can either purchase or maintain the minimum balance on Coinbase or transfer that cryptocurrency from an outside wallet or exchange.
- You must hold the eligible cryptocurrency on Coinbase.com (staking is not available on Coinbase Pro)
Coinbase now stakes Tezos on behalf of customers and distributes rewards directly to customer accounts.
Coinbase: Staking Rewards
Staking lets you earn income with your crypto by participating in the network of a particular asset. When you stake your crypto, you make the underlying blockchain of that asset more secure and more efficient. And in exchange, you get rewarded with more assets from the network.
Coinbase is offering an easy, secure way to actively participate in the Tezos network. While it’s possible to stake Tezos on your own or via a delegated staking service, it can be confusing, complicated, and even risky with regard to the security of your staked Tezos. Coinbase says they are changing that with staking rewards on Coinbase.
- You can begin earning rewards on your crypto. The current estimated return for Tezos staking on Coinbase is ~5%. You’ll see your pending rewards increase in real-time in the app, and once your initial holding period completes (35–40 days), you’ll receive rewards in your account every 3 days.
- You will always maintain control. Your Tezos always stays in your wallet; you just earn rewards while keeping your crypto safely on Coinbase. You can opt-out any time you want.
The return rate stated by Coinbase is a projection based on the rewards they have generated over the past 90 days. The Tezos network sets the underlying return rate depending on the number of staking participants and Coinbase distributes the return to customers and keeps a portion as commission.
Starting today, eligible customers in all Coinbase supported countries can also participate in the Coinbase Earn Tezos campaign. Customers can earn a bit of Tezos simply by learning about the token and taking a few quizzes. Through Coinbase Earn, clients can earn up to $6 of Tezos, which Coinbase can then start staking on your behalf.
You can learn more about staking rewards on Coinbase at coinbase.com/staking.