They hurt smaller and new operators, because they are forcing them to remain without delegates and hence making their operation unviable – without delegates a pool may be forced to close. They hurt their delegators because they could have provided a higher amount of rewards by concentrating their pledge into a single pool by not doing that, there are rewards that remain unclaimed. ![]() Pool operators that run multiple pools with small pledge hurt delegators and smaller operators. ![]() In The general perspective on staking in Cardano, Prof. Both of these can be staked while Binance is the custodian and only a fraction of those are taking part in the Binance staking offer. ADA/USDT, ADA/EUR, ADA/ETH, ADA/BNB, ADA/BTC, etc) plus all the ADA that is not on the order book and waiting to get traded or withdrawn. There are always a lot of ADA on the respective order books (i.e. I don’t think there is conceptually anything wrong with what Binance is doing and it is also easy to see how they do it. Is there any plan to mitigate the effects of that behavior ? Promoting a ~20% yearly reward, very available, but very misleading because of the limitation to 15 days.Promoting a 3 months ~20% yearly reward, but hiding the initial availability of the offer, which I suspect to be very low.I do think Binance is not transparent enough by: This is bad for decentralization, this is bad for competition and in the end, bad for the network. And most of them will probably stay there. I see a mass of ADA holders flooding their funds to their Binance account with the hope of getting a grasp of that reward, which look awesome on paper. To me, that is very similar to some dumping policy where you attract customers with a nice marketing offer, accepting a temporary loss that you keep under control with a few restrictions, in order to drive out competition thanks to your big pockets. I can see very high rewards (yearly ~20%, so much better than the network), but either very limited in time (15 days) or with very low availability (usually displayed as sold out). Binance US, for instance, only requires 0.001 ETH to get started, which is roughly $1.50 worth of ETH at today’s prices.I have some concerns when I see the staking rewards proposed by Binance for Ada and other coins. Although these providers earn fees that cut into stakers’ profits, they significantly lower the financial barrier to entry. That’s worth roughly $50,000 at current prices, which prices out most average users.Īs such, users have quickly gravitated towards using centralized staking platforms, known as staking pools, instead. In order to be a solo staker, users must pledge a minimum of 32 ETH to the network. ![]() ![]() After that time, Ethereum users will be able to stake their ETH to help secure the network while earning passive ETH rewards in the process.īased on the beacon chain’s current numbers, the Amber Group, a crypto financial services firm, has estimated that rewards for validators could range between 8% and 12% APY. The merge is currently expected to take place sometime between September 13 and 15. This merge will complete Ethereum’s transition from a proof-of-work consensus mechanism to proof of stake The “merge ” refers to Ethereum’s long-awaited upgrade that will combine the network’s consensus layer, known as the beacon chain, with its execution layer, which is the current Ethereum mainnet. “As the Ethereum network continues to transition towards The Merge, we are thrilled to now offer ETH staking with some of the highest APY rewards in the industry," Binance US CEO Brian Shroder said in a press release. Staking rewards, however, are subject to change based on Ethereum transaction fee volume among other factors, according to Binance US. Crypto lending platforms like BlockFi and Nexo offer only 4% and 5% APY on ETH staking, respectively, despite using a relatively high-risk, high-reward business model. That’s a sizable step above major competitors like Lido and Coinbase, which currently offer 3.5% and 3.25% APY, respectively, on staked ETH.
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