Through Coinbase's staking service, Solana token holders will be able to earn rewards, being able to opt out of the service anytime
U.S-based crypto exchange Coinbase users will now be able to stake their Solana token on the platform and earn rewards from doing so. Coinbase made this known in a June 29 blog post stating that it was expanding its staking services to include Solana.
Staking services allow token holders to assign their tokens to a validator, which benefits in increased voting weight. While doing so, token holders earn a passive income which varies per blockchain.
Through exchanges like Coinbase, which provide staking services, users can bypass the difficulty associated with staking Solana individually. Therefore, this latest introduction will allow users to stake their Solana tokens bought on Coinbase or deposited from another wallet.
In return, users will earn an estimated annual return of 3.87% APY, which accumulates every 3–4 days. Additionally, holders can earn rewards on stakes as little as $1. Also, users who stake through Coinbase can unstake and transact with their tokens as they wish.
As included in the post, the rewards rate is based on the estimated protocol rate, which is subject to change. On every reward, Coinbase will charge a 25% commission.
The crypto exchange assured that the staking feature would be progressively rolled out to all eligible customers.
Source: Cryptoslate