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Binance adds support for Tezos (XTZ) token staking

  • Binance will support the staking of Tezos (XTZ) from 04 December 2019.
  • From this date, Binance users can earn a reward by holding Tezos. The first distribution will take place on 20 January 2020.

The crypto exchange Binance has announced in a press release that it will support Tezos (XTZ) token staking from 4 December 2019. From this date, Binance will take hourly snapshots of user XTZ balances starting from 00:00 UTC. Users of the exchange will thus have the opportunity to receive a monthly reward for holding Tezos (XTZ). For this, Binance explained, each user must hold at least 1 XTZ on their wallet to qualify for staking.

Unlike other exchanges, such as Coinbase and Gate.io, which charge a fee of 25 percent and 33 percent respectively for their XTZ staking services, the Malta-based exchange will not charge a fee for the staking service. Changpeng Zhao, CEO of Binance, first highlighted the possibility of staking in September, when Tezos was listed and Binance started trading on XTZ with three pairs against Bitcoin (BTC), Tether (USDT) and Binance Coin (BNB).

Binance will calculate the XTZ rewards on the basis of daily live snapshots and distribute them monthly, whereby the first distribution is to be completed before 20 January 2009. The distributions are expected to be completed before the 20th day of each following month. Users who deposit XTZ between 4 and 19 December 2019, for example, will receive their first distribution until 20 January 2020. Users who deposit XTZ between 20 December 2019 and 19 January 2020 will receive their reward distribution until 20 February 2020.

The free staking service appears to be another Binance initiative to attract new users and keep existing customers on the exchange. Binance will not earn any money with the Tezos staking service.

Tezos currently trades at USD 1.27 and is one of the biggest winners since the beginning of the year. On 1 January 2019, the XTZ price stood at around USD 0.44 and has almost tripled since then.

Tezos (XTZ) on an uptrend

The upward trend of Tezos is by no means a surprise, but seems to have been strongly influenced by the positive news of the project.

About two weeks ago, CNF reported that the French police, in particular the Cybercrime Division (C3N), had been using the Tezos Blockchain since September 2019 to record the court costs of the investigations. The use of Tezos by the French government is one of the first cases in which a European government is using a public blockchain.

Furthermore, Tezos has announced that it will introduce Zero Knowledge Proofs in the form of zk-SNARKS with one of its next network upgrades. This is intended to enable large enterprises and banks to use it on a commercial basis. The Bank of France has already shown interest.

In addition to this positive development, there is also a small question mark behind Tezos. At US federal level, a class action suit is pending against Tezos for violating the Securities Act. Thus it is questionable in the United States whether Tezos (XTZ) is classified as a security.

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About Author

Jake Simmons

Jake Simmons has been a crypto enthusiast since 2016, and since hearing about Bitcoin and blockchain technology, he's been involved with the subject every day. Beyond cryptocurrencies, Jake studied computer science and worked for 2 years for a startup in the blockchain sector. At CNF he is responsible for technical issues. His goal is to make the world aware of cryptocurrencies in a simple and understandable way.

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