Algorand (ALGO)
$0.455692 (4.04 %) View coin |
Cosmos (ATOM)
$5.24 (-5.69 %) View coin |
Tezos (XTZ)
$4.18 (14.16 %) View coin
News
21 May 2020

Coinbase Custody adds staking support for Cosmos

Coinbase’s custody arm has announced clients can now stake their Cosmos (ATOM) tokens through the custodian. The move allows these investors to lock their tokens on the network and collect inflation rewards on their otherwise idle holdings. Coinbase Custody also noted that its Cosmos staking services support delegations from offline storage systems as opposed to often less-secure hot storage alternatives.

In the announcement, the custodian also quietly revealed it also supports staking for Algorand (ALGO) in addition to Tezos (XTZ). Coinbase currently charges a 25% fee on XTZ received via block rewards, but it has not disclosed if this fee will carry over to AGLO or ATOM stakers at this time. According to Staking Rewards, the annual inflation for Cosmos is ~8.3%, while the same for Algorand stands around 5.4%

Why it matters: - Ever since Coinbase listed ATOM, support for Cosmos staking was inevitable. The exchange turned Tezos staking into a legitimate revenue generator, and it should be only a matter of time before Coinbase opens staking rewards to all customers. - Will this have a material impact on price like it did with Tezos? As we’ve covered before, Cosmos’ staking model is fundamentally different from Tezos. It doesn’t have a “staking capacity” metric that would force validators to top off their self-stake despots. Cosmos also penalizes error-prone validators by slashing 5% of their total stake weight, placing both validators and delegator funds at risk. While this risk could be a deterrent to some prospective delegators, exchanges that pledge to cover any customer losses (as Coinbase has) could preemptively purchase ATOMs equal to 5% of its stake weight for this insurance fund. From this perspective, Cosmos’ staking model could bear some similarities to Tezos. (h/t Brian Fabian Crain)

Newsletter
27 July 2020
3 coins to keep an eye on | Issue #88
The past week brought some signs of life to Bitcoin. The price climbed over 11% from its lows to its highs before closing almost 8% higher than the week before. Meanwhile, the altcoin marketcap surged almost 15% alongside Bitcoin from $103 billion to $118 billion by the weekend. While we wait to see if this week brings ...
The Tezos Foundation has announced its fourth cohort of ecosystem grants, issuing funds 18 development teams and projects. This grant program offers financial support to projects building on the Tezos protocol, and this round had a particular focus on teams working to boost smart contract developmen...
BitGo now supports custodial and staking services for XTZ, the native asset of the Tezos blockchain, as reported by CoinDesk. The crypto custodian said Tezos investors could expect to earn around 6% in annual XTZ inflation rewards. BitGo’s custodial support could extend to include Bezos-based tokens...

3 coins to keep an eye on 👀