Binance launches new ETH2 staking service

Written by: Ali Raza
December 2, 2020
  • The exchange wants to offer daily rewards to users to encourage more participation.
  • Benefits of staking include non-payment of all on-chain penalties and no operational expenses.
  • Users who have completed their KYC will also be rewarded with additional tokens.

Crypto exchange Binance revealed in a blog post that it will go live with the new ETH2 staking service his week. According to the exchange, the staking service will be launched today, as it plans to offer daily rewards to stakers in form of BETH tokens.

Binance said participants in the ETH 2 staking will be rewarded with BETH at 1 ETH to 1 BETH ratio. Additionally, the ETH 2 staking rewards will be issued daily in form of BETH, the statement continues.

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When the ETH 2 phase is launched, BETH will enable holders to redeem their ETH reward at the ratio of 1:1.

Benefits accrued to users

Binance also listed the benefits of staking in the ETH 2.0, stating that the exchange will take care of all user validator operational expenses. It will also take care of all on-chain penalties as well distribute all on-chain staking rewards to users.

However, there are rules and benchmarks for the staking service. According to Binance, the reward calculation is based on user holdings, as it plans to distribute the BETH rewards daily. Also, users are allowed to stake 5%-20%, based on their on-chain staking income. The minimum staking amount is pegged at 0.0001 ETH and the reward period begins from 2020/12/02 at 0:00 AM (UTC).

Binance also said if BETH is offered in the future for trading, users will be allowed to trade between BETH and ETH without any charges or fees.

Users who have finalized their Know Your Customer (KYC) forms before the end of the activity period will also be rewarded with BETH.

Qualifying users can also double their rewards for a maximum of 5,000 staked ETH. Additional rewards earned from users who staked more than 5,000 will not be included in the BNB reward calculation.

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The initial phase of ETH 2.0 went live yesterday

The announcement is coming barely 24 hours after Coinbase exchange listed its ETH 2.0 support plans. The plans include the introduction of a trading pair between the ETH and ETH2 tokens, as well as a planned staking service.

The ETH 2.0 project started the initial stage of its multi-stage rollout yesterday, as has already been planned. It came with the introduction of the so-called beacon chain, which will serve as the data backbone for the new network.