Staking on Kraken

Something to look forward to soon with ADA…From an email I received today:

Kraken is proud to announce the launch of our new, best-in-class staking service. Starting Friday, December 13, you can leverage Proof of Stake (POS) holdings to safeguard crypto networks and obtain financial rewards.

Key Advantages to Staking with Kraken:

  • Start earning rewards instantly, with no waiting or lockup periods
  • Enjoy one of the highest returns in the industry at a fixed rate of 6%
  • Payouts every Monday and Thursday
  • Stake your tokens in just three clicks from your Kraken Spot Wallet
  • You can quickly exit from your staking position by transferring tokens from your Staking Wallet back to your Spot Wallet

What is Proof of Stake (POS)?

Proof of Stake (POS) refers to a new mechanism for achieving consensus in blockchains that is more scalable and energy-efficient than traditional Proof of Work (POW) networks such as Bitcoin.

  • Token holders can earn rewards on their tokens, similar to mining, by posting them to the network.
  • This action gives them the right to add transactions to the network’s blockchain.
  • When they add a block to the network they receive the rewards as compensation.

Introducing our First Staked Token - Tezos

Tezos is an open-source POS blockchain that utilizes a native crypto asset (XTZ - a.k.a. a Tez or Tezzie) designed to provide secure, institutional-grade smart contracts that are robust enough to use in mission-critical environments (think: aerospace, nuclear, semiconductor industries).

  • Its functionality is similar to Ethereum and it supports a wide range of distributed applications, known as dapps.
  • A key differentiator is its modular architecture, which makes it easy to upgrade the network.
  • Individuals or companies that operate validators (or nodes) are compensated with XTZ in exchange for processing transactions on the network.
  • Kraken will earn a percentage of the network’s staking rewards based on the number of blocks its validator creates, and will distribute these earnings to staking clients per the agreed terms.
  • Clients that stake XTZ will receive a 6% return annually (rewards will be paid out every Monday and Thursday).

How Do I Start?

  • To start, you will need to have XTZ in your Kraken Spot Wallet.
  • XTZ can be purchased directly on Kraken, or transferred from elsewhere into your Kraken Spot Wallet.
  • To start earning rewards, simply transfer XTZ from your Kraken Spot Wallet to your new Kraken Staking Wallet. To do this, navigate to “Staking”, then under “Tezos (XTZ)” click “Stake.”
  • Once the XTZ hits your Staking Wallet, you start generating rewards instantly.
  • Clients that stake XTZ will receive a 6% return annually (rewards will be paid out every Monday and Thursday).

Please click here for our Terms and Conditions.

Additionally, for more background and information please review our blog post.

Thank you for choosing Kraken, the trusted and secure digital asset exchange.

The Kraken Team