Kraken has become the second platform to announce the launch of staking service where you can leverage your Tezos holdings thereby safeguarding the network in order to obtain a financial reward.
Holders of Tezos on Kraken and can enjoy one of the highest returns in the industry at a fixed rate of 6% payout that will be every Monday and Thursday.
Users of the exchange can start earning rewards immediately and if they so choose they can also exit the staking scheme quite easily as well.
￼Kraken is the second leading exchange offer Tezos staking to its customers.
Coinbase launched their own Tezos staking service last month and Coinbase Custody who handle institutional investments for the San Francisco based exchange followed suit shortly afterwards.
Staking for Tezos will be available from Friday, December 13.
You can stake your Tezos on Kraken from Friday
To begin you need to put Tezos into your Kraken staking wallet and you will start to get your awards instantly.
Customers that stake Tezos will receive a 6% return annually with the only proviso being that the tokens staked cannot be used to trade on the exchange
The positive news has seen Tezos move in the opposite direction of the market today posting a double-digit increase for the 24 hour period and is currently valued at $1.56 at the time of writing.￼￼￼￼￼
￼￼What are the other benefits of staking?
Networks like Bitcoin and Ethereum work because they have miners who willingly leverage their computational power in order to process a crypto transaction and safeguard the blockchain. This process is known as proof-of-work (POW).
Unfortunately, this has often led to slow confirmation times, limited throughput and a drain on electrical and computational power.
Many new blockchains are utilising a new form of achieving consensus known as proof-of-stake (POS), to process transactions.
It’s far more energy-efficient and it actually leads to much quicker confirmation times.
So instead of highly-priced, powerful nodes processing transactions in return for a financial reward, a user will stake a percentage of their crypto holdings as collateral to achieve the same end.
The user who stakes his or her holdings to a network can earn monetary rewards from a supportive exchange. So you’re actually being environmentally friendly by stating your cryptocurrency and you’re also getting monetary rewards for it.