Cryptocurrency exchange platform Luno has launched Ethereum (ETH) staking allowing customers to earn rewards for helping to ensure the integrity of the network.
By staking, the rewards rewarded in crypto will also grow customers’ crypto holdings. While they are staked, customers cannot sell or send their coins, but they can “unstake” at any time and remove their coins from their staking wallets it said.
Malaysia is Luno’s second country after South Africa to launch staking for its customers. It remains committed to driving the adoption of crypto by innovating and introducing new features and products with an emphasis on investor safety and customer experience.
What is staking? Staking is a way of generating rewards on crypto by helping to verify cryptocurrency transactions, users can stake cryptocurrency in projects that use a proof of stake consensus mechanism to process transactions, such as Ethereum.
The proof of stake consensus mechanism requires people to actively put their cryptocurrency to work in helping to secure the cryptocurrency network. To be able to verify transactions and get rewards, you have to have put up a certain amount of cryptocurrency before you can take part.
This effectively acts as a deposit to ensure users are validating the right transactions. If you do it right, you get a reward. If they validate flawed or fraudulent data, they may lose some of the stake as a penalty however Luno says it work hard to mitigate this risk by teaming up with trusted validator providers with industry-leading monitoring, failsafes, and protection in place.
The platform will offer an annual reward percentage of up to 4%* per annum on staked Ethereum, in Ethereum, though this will vary depending on network conditions. Rewards are given every week and doesn’t charge a fee to stake or unstake cryptocurrency, but there is a staking service fee that is deducted from the reward customers receive.
Staking through its platform removes the technical and financial barriers to entry for ordinary people looking to earn rewards with a minimum of 0.00001 ETH or RM1 to stake. Customers can receive rewards on crypto without needing technical knowledge to set up staking it said.
