TABLE OF CONTENTS
- What is staking?
- Is there a fee associated to staking on CoinList?
- How do I earn staking rewards?
- Which assets does CoinList provide staking for?
- How do I opt out of staking?
- Which assets stake automatically and which assets do I need to opt into in order to stake?
What is staking?
Some crypto networks, like Bitcoin, use a Proof of Work (PoW) consensus mechanism where miners validate transactions by solving difficult math problems. Other networks use a consensus mechanism known as Proof of Stake (PoS). In PoW networks, miners maintain consensus and secure the network, while PoS networks rely on participants known as validators to perform the same work.
Validators confirm transactions and maintain consensus on the network to maintain the integrity and security of the blockchain they’re validating. To ensure that validators are acting honestly, PoS networks require validators to stake a minimum amount of tokens native to that network. This stake can be aggregated from many users, not just the validator, and essentially acts as a security deposit – if a validator is confirming invalid transactions, then validators will lose part of the capital they staked. As compensation for their work and for the opportunity cost of capital, validators earn network rewards for their work. These rewards can be shared among their community for users who have provided additional stake.
Most PoS networks have different and unique consensus mechanisms and economic models. We recommend conducting your own research on each network before participating in any staking program.
Is there a fee associated to staking on CoinList?
CoinList does not charge users for staking on CoinList, but we do take a commission fee on staking rewards paid out to our users. This commission may vary between assets. The reward rate displayed for the asset reflects this commission.
Please visit our fees page for additional details.
How do I earn staking rewards?
When you deposit or purchase a supported Proof-of-Stake (PoS) asset on CoinList, you may be eligible to receive staking rewards by having that asset in your CoinList wallet. Once you deposit an eligible asset into your CoinList wallet, you are automatically opted into staking rewards.
There is no action on your end required to participate, but you may opt-out of staking rewards on CoinList at any time.
Which assets stake automatically?
CELO and MINA
How do I opt-out of auto staking?
If you would like to opt-out of staking rewards:
1. Go to the Staking page;
2. Select the asset you would like to opt-out of;
3. Select “…” for more options;
4. Toggle “Auto stake assets” off.
Please note that if you opt-out of staking, your earned staking rewards will be distributed at the end of the month along with the regular staking reward distributions. You will not receive your earned staking rewards early.