I have some concerns when I see the staking rewards proposed by Binance for Ada and other coins.
I can see very high rewards (yearly ~20%, so much better than the network), but either very limited in time (15 days) or with very low availability (usually displayed as sold out).
To me, that is very similar to some dumping policy where you attract customers with a nice marketing offer, accepting a temporary loss that you keep under control with a few restrictions, in order to drive out competition thanks to your big pockets.
I see a mass of ADA holders flooding their funds to their Binance account with the hope of getting a grasp of that reward, which look awesome on paper. And most of them will probably stay there.
This is bad for decentralization, this is bad for competition and in the end, bad for the network.
I do think Binance is not transparent enough by:
- Promoting a 3 months ~20% yearly reward, but hiding the initial availability of the offer, which I suspect to be very low.
- Promoting a ~20% yearly reward, very available, but very misleading because of the limitation to 15 days.
Is there any plan to mitigate the effects of that behavior ?