We are launching staking rewards for @cosmos and @Algorand, with more tokens in the pipeline. #UserFirst What tokens would you like to see https://t.co/AZwoBOgsqS support staking for?https://t.co/kAC2qEujkN — Binance.US (@BinanceAmerica) January 29, 2020
Furthermore, the exchange announced plans to add other Proof-of-Stake (PoS) coins later. The announcement explains that an easy way to access staking “allows more people to earn rewards for contributing to the network by promoting network security, reducing validation costs.” Furthermore, Binance.US claims to be the first United States marketplace to offer staking rewards for users’ ATOM and ALGO holdings.
CEO Catherine Coley said:
“Staking is just one of the many attractive ways we are bringing new people into the digital asset marketplace. We consider this another step towards achieving our goal of financial inclusion for an ever-growing pool of people.”
The announcement follows the launch of a dedicated staking platform by Binance’s principal cryptocurrency trading platform at the end of September 2019. Staking is an activity possible on PoS-based blockchains that allows the network’s nodes to validate blocks by holding cryptocurrency as collateral.
The initiative often referred to as staking-as-a-service, attracted some criticism from the cryptocurrency community. Dovey Wan — founding partner of blockchain-based investment company Primitive Ventures commented at the time of the announcement:
that’s why RIP for all StakingaaS Exchanges gonna eat it, custodial wallets gonna eat it, even PoW pool gonna eat it, and then the remaining is a race to the bottom Bad business, just bad https://t.co/PFM5i7BXHY — Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) September 27, 2019