On Thursday (October 10), Binance announced staking support for Fetch.AI (FET) and Elrond (ERD), two cryptoassets that had public token sales on Binance Launchpad (Binance’s IEO platform) earlier this year.

Binance’s Staking Platform

Binance announced on September 26 the official launch of its Staking platform, which provides a super easy way to earn staking rewards just by “depositing and holding funds” on Binance.

Binance defines “staking” as “the process of holding funds in a cryptocurrency wallet to support the operations of a blockchain network.”

Here is what Binance Co-Founder and CEO Changpeng Zhao (aka “CZ”) said about the exchange’s staking service on September 27:

Until today, here were the cryptoassets supported for staking: Algorand (ALGO), Komodo (KMD), NEO, Ontology (ONT), Qtum (QTUM), Stellar Lumen (XLM), Stratis (STRAT), and Vechain (VET).

Here are a few things worth noting about Binance’s staking service:

  • It is free — Binance does not charge any fees for staking.
  • It has no “lock-up period” — you can sell you coins or withdraw them at any time to stop receiving staking rewards.
  • You can trade any portion of your coins while staking (obviously, this will affect your staking balance).

Staking Support for Elrond (ERD)

Binance announced this news via the following tweet:

Binance’s staking support for Elrond (ERD) starts today (October 10).

The Binance team said that ERD staking rewards would be distributed as follows:

  • Starting at 00:00 UTC on 10 October 2019, Binance will start taking hourly snapshots of users’ ERD balances (i.e. 24 snapshots each day).
  • The following two equations will be used to calculate the ERD staking distribution:
    • “ERD generated by each user = Total ERD staking rewards received by Binance * User ERD holdings ratio”
    • “ERD holdings ratio = User ERD holdings / Total ERD staked by Binance”

To qualify for staking rewards, users need to have at least 700 ERD.

The first distribution will be calculated up to 10 November 2019, “with the total amount distributed equal to the staking rewards accrued on holdings during the period.”

ERD rewards will be determined on a daily basis (hourly snapshots) and paid out on a monthly basis.

Staking reward distributions will be completed by the 15th of each month.

Staking Support for Fetch.AI (FET)

Binance announced this news via the following tweet:

Binance’s staking support for Fetch.AI (FET) starts on October 11.

The Binance team said that FET staking rewards would be distributed as follows:

  • Starting at 00:00 UTC on 11 October 2019, Binance will start taking hourly snapshots of users’ FET balances (i.e. 24 snapshots each day).
  • The following two equations will be used to calculate the FET staking distribution:
    • “FET generated by each user = Total FET staking rewards received by Binance * User FET holdings ratio”
    • “User FET holdings ratio = User FET holdings / Total FET staked by Binance”

To qualify for staking rewards, users need to have at least 25 FET.

The first distribution will be calculated up to 10 November 2019, “with the total amount distributed equal to the staking rewards accrued on holdings during the period.”

ERD rewards will be determined on a daily basis (hourly snapshots) and paid out on a monthly basis.

Staking reward distributions will be completed by the 15th of each month.

Why Binance Is Adding Support for Elrond

Earlier today, Changpeng Zhao (aka “CZ”), used the following tweet to explain why Binance is adding staking support for Elrond:

 

Featured Image Courtesy of Binance