Multi-asset exchange eToro is launching a new service that will offer rewards for “staking” tokens, beginning with TRON and ADA.
- The trading platform announced Thursday that the service, one of the first to offer staking for Cardano's native ADA token, will go live later this month.
- eToro will effectively execute the staking on behalf of its users.
- Compared to proof-of-work protocols, which rely on miners running powerful computer hardware to confirm transactions, proof-of-stake (PoS) networks rely on the users themselves to stake, or lock up, their tokens and provides rewards for confirming transactions.
- eToro's service is aimed to make staking more accessible for everyday users, the firm said in a statement. The exchange will email reports to users showing how much income they've made on a monthly basis.
- A spokesperson told CoinDesk the service will be free of charge for eToro clients.
- The number of fully functioning PoS networks is growing. Cardano, which has a market cap of $3.25 billion, launched its "Shelley" staking protocol in late July.
- The month before, Coinbase Custody announced plans to offer secure Cardano staking sometime in Q4 2020.