The US-based crypto exchange Poloniex has announced that it will soon incorporate staking rewards for Cosmos ATOM. The announcement came via a tweet on Wednesday, where the exchange also shared a blog post posted on medium.com.
— Poloniex Exchange (@Poloniex) May 8, 2019
Once implemented, Poloniex will become the first crypto exchange to support staking for ATOM. While maintaining their ability to trade, the platform will automatically reward eligible users who hold ATOM on the exchange. It further stated,
Staking for Cosmos atoms follows a series of innovative opportunities we’ve offered to atom holders, including redemption for ICO participants, margin trading and lending.
Cosmos is working towards creating an interconnected network of blockchain, like the internet of blockchains, via the Tendermint Consensus Core consensus engine. The platform offers blockchain solutions to eliminate issues hindering interoperability and scalability for mainstream adoption. The DLT network’s native cryptocurrency ATOM went live earlier this year in March.
Crypto Staking is a concept where platforms purchase cryptocurrencies and keep (hold) them in a cryptocurrency wallet for a certain amount of time. Proof-of-Stake (PoS) is an agreement algorithm of digital assets, which creates new blocks to be added to the blockchain. The newly created blocks are staked by the persons or platforms already holding the cryptocurrency, which validates or mines new tokens on the platform.
The blog post stated,
Where blockchains like Ethereum and Bitcoin secure their networks through Proof-of-Work, the Cosmos Network uses Delegated Proof-of-Stake. Instead of miners committing custom hardware and electricity towards solving computations that secure the network, Cosmos validators ‘stake’ ATOMs in order to secure the network.
For the users, staking is quite similar to putting money in fixed deposits. FDs are less rewarding as compared to mutual funds, but safe and secure nonetheless. Similar is the case with crypto skating. Delegated Proof-of-Stake networks like Cosmos give the users an option to participate in crypto networks to earn rewards. The crypto exchange is building a system to stake ATOMs and reward customers, without affecting their regular trade.
Launched in 2014, Poloniex is among the oldest crypto exchanges in the United States. The platform allows buying, selling, and holding of over 60 digital assets. Poloniex is the only exchange where Cosmos ICO participants can preview their ATOMs balance.