Earlier today, Binance announced that it would be adding support for the EOS ($EOS) Staking on its trading platform starting March 13, 2020 (Friday).
— Binance (@binance) March 11, 2020
The announcement stated that within two days, users would be able to enjoy hassle-free staking rewards through the platform’s monthly staking airdrop program. The staking distribution for the coin will be calculated as follows:
EOS generated by each user = Total EOS staking rewards received by Binance * User EOS holdings ratio
Initially, the staking rewards will be calculated through to the end of April, with the total amount distributed being equal to the EOS staking rewards accumulated during the period.
After this period, EOS staking rewards will be calculated daily and distributed on a monthly basis. Rewards will be distributed before the 20th of each month.
The press release added that users must hold a minimum balance of 0.25 EOS in their wallets in order to qualify for the coin’s staking rewards program.
The EOS coin will be the 21st coin on Binance’s staking platform. Other staking products include Tezos, TRON, ATOM, TROY, LOOM, QTUM, Vechain, Ontology, Stellar Inflation, ARPA, Lisk, KAVA, and others.
Staking is the process of holding funds in a cryptocurrency wallet in order to receive crypto rewards. It is essentially a direct investment in the cryptocurrency. The process helps in supporting the operations of blockchain networks that use the Proof of Stake (PoS) consensus mechanism (or their variants).
Unlike the Proof of Work (PoW) mechanism that relies on mining hardware (ASICs) and heavy computation work to verify and validate new blocks, the PoS system validates new blocks through staking.