— Binance (@binance) December 3, 2019
The announcement was made on Tuesday, December 3. Binance mentioned there will be no fees for the staking services. This comes as surprising, seeing that exchanges like Coinbase and Gate.io charge 25% and respectively 33% for the same Tezos XTZ services.
Binance to not Take a Cut When Giving Staking Rewards
All this means Binance won’t take a cut when distributing staking rewards. However, it’s not yet clear if the services will be free forever, especially since the exchange has charges when it comes to staking with other tokens.
The Strategy Doesn’t Seem to Aim Making Money
This zero-fee strategy seems to be more aimed at acquiring new users rather than on making money. Exchanges often prefer to take care of costs just attract new customers, which makes staking companies unable to compete.
Binance Will Begin Distributing XTZ Staking Rewards in January
Binance is planning to begin the distribution of XTZ staking rewards starting with January 20, only to do it on the 20th day of every month afterwards. For example, the rewards for XTZ deposits made between December 20 and January 19 are going to be received on February 20. Coinbase also offered the same XTZ services to its institutional clients only in the beginning, after which it expanded to all customers in US and international users later on.