Coinbase Launches Staking Program For Cosmos, ATOM Holders Can Earn 5%
In a blog post released on Wednesday, Coinbase introduced staking on ATOM, promising up to 5% return per annum on the value staked. The Cosmos Staking Reward will be available to select customers across 48 states in the U.S and across Europe, including the U.K., Netherlands, Belgium, Spain, and France.
This is an automatic process generated by Coinbase. Users only need to deposit ATOM or buy the tokens directly on the exchange to start earning rewards. At launch, ATOM rewards will be distributed every seven days – Tezos (XTZ) rewards are distributed every three days.
‘Coinbase is always looking for ways to enable easy and secure participation in the crypto-economy,” the statement reads.
Cosmos is a proof-of-stake (PoS) blockchain that allows users to “stake” their tokens to participate in the governance of the network and receive rewards in the process. The blockchain provides interoperability across blockchain and their native tokens.
A spokesperson from Coinbase to The Block states ATOM staking will charge a commission of 25% is lower than that of XTZ. The latter offers a 15% annual return being the only staking platform on the exchange before ATOM joined. Since launching in Q4 2019, Tezos holders have received more than $2 million in rewards from Coinbase.