Many crypto exchanges have resorted to offering their customers different staking rewards programs in a bid to attract most traders and investors flocking the cryptocurrency space. The cryptocurrency market’s growth, which is widely associated with the digital assets’ success in the space, has also sprung up many crypto service firms and exchanges in the last three years. However, in a recent report, Binance, one of the world’s trusted cryptocurrency exchange, has now started offering rewards of up to 43% to its customers who stake their Solana tokens.
High stakes will earn lower rewards
The new Solana offering by Binance is welcomed with both hands, especially by holders of the high-speed blockchain token. The usual reward program of the proof-of-stake blockchain features Validators, who are tasked to keep the network running and are rewarded with the blockchain’s token as a reward. However, Binance’s new program is set to kick-off, with the exchange playing the Validators’ role on the network and sharing the rewards to its customers who stake SOL on its platform.
Users will lock their stakes on Binance from about 15days to 90days, and after that, they will get rewarded. However, a feature of the program ensures that users who stake a maximum of 20 SOL tokens will earn about 29 SOL after a year, representing a reward of about 43.7%. According to the official release by Binance, users will be attended to on a first-come, first, serve basis. The rewards program is also designed so that users who stake so high are rewarded with low interest, while users who have low stakes have a high annual percentage interest. An example of the reward program’s annual interest rate schedule will offer stakes of 10,000 SOL about 15% interest for 30 days, while 5000 SOL stakes will earn about 17% reward.
Binance is covering the risk for its stakes
Binance is one of the most preferred crypto exchanges globally, as the crypto exchange service offering is unmatched by many of its counterparts in the cryptocurrency space. Like every other investor in any Binance reward program, the SOL investors in the new reward program are guaranteed their digital assets as it is believed that the Washington-based Crypto exchange will insure all stakes. Despite the risk involved in proof-of-stake, as it is known that slashing- a system where malicious validators can negatively impact the network, is very prevalent in many proof-of-stake networks.
The role of Binance as a validator will ensure that such occurrences do not occur, as the stakes are not any risk. Binance continues to wow many of its customers with several crypto-tailored reward programs and products, which is believed to be one of the factors attracting new investors and traders into the cryptocurrency space. Despite a few mishaps, the role played by Binance and many cryptocurrency exchanges cannot be undermined, as they aid the growth of the cryptocurrency market predicted by analysts to triple by December 2021.