Tezos holders on Coinbase will now benefit from staking rewards. XTZ holders will automatically earn an estimated 5% annually on their balance.
Coinbase implemented Tezos staking on its retail platform across eligible US users. After an initial holding period of 35-40 days those holding XTZ balances will begin receiving staking rewards every three days. People can opt-out at any time.
As part of Tezos’ proof-of-stake mechanism, token holders can stake their coins to participate in mining (or in Tezos terminology “baking”) blocks. As part of that process stakeholders are rewarded for their participation at annual percentage rate of 5%, as calculated by Coinbase.
The staking process can sometimes be complicated, especially for non-technical users. Now, those holding balances on Coinbase can earn staking rewards without the added complexity.