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Bitfinex distributes $100,000 in staking rewards
Bitfinex distributes $100,000 in staking rewards
Crypto

Bitfinex distributes $100,000 in staking rewards

By Marco Cavicchioli - 29 Apr 2020

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Bitfinex has announced that it has distributed 35,000 EOS tokens in staking rewards, worth a total of approximately $100,000.

Bitfinex’s Staking Rewards program is designed to provide users with an alternative way to increase their funds and allows its customers to earn up to 10% of the theoretical amount deposited per year. 

This is the estimated annual percentage for tokens staked on Bitfinex, although, in order to minimize the risk of staking not allowing users to withdraw their tokens freely, it only uses a portion of the total number of tokens staked. 

How does staking on Bitfinex work

In addition to EOS, Bitfinex allows staking also Cosmos (ATOM) and v.systems (VSYS), whereas Tezos (XTZ) will be introduced in May. 

Staking allows token owners to lock their tokens in exchange for a percentage reward. 

Generally, this is achieved thanks to the so-called Delegated Proof of Stake (DPoS), which is a different consensus algorithm than the one used for example by Bitcoin (PoW). 

DPoS allows users to delegate the staking of their tokens to third parties who will use them to validate blocks, in exchange for rewards which are then redistributed among users who have delegated the staking of their tokens. 

EOS uses this very system to validate the blocks and therefore allows EOS token owners the possibility to receive these rewards, which are in EOS tokens. 

In total, 35,000 EOS tokens have been distributed in rewards to those who have delegated the staking of their EOS tokens to Bitfinex, although it is not known how many EOS tokens have been delegated to Bitfinex. 

However, the figure of $100,000 is still very significant. 

The CTO of Bitfinex, Paolo Ardoino, said: 

“We accumulated a good amount of EOS in recent weeks and are delighted to announce the distribution of staking rewards. As an exchange, we value the loyalty of our customers and are always looking to innovate in such a way that we can give something back of real value to our growing active user base”.

 

Marco Cavicchioli
Marco Cavicchioli

Class 1975, Marco teaches web-technologies and is an online writer specializing in cryptocurrencies. He founded ilBitcoin.news, and his YouTube channel has more than 25 thousand subscribers.

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