Binance Set to Launch Cosmos Staking, ATOM Price Surges

www.cryptoglobe.com 2019-12-05 12:10
Reading time: ~2 m

On Wednesday (December 4), digital asset exchange Binance announced that it will soon be adding support for Cosmos (ATOM) staking.

Binance's Staking Support for Cosmos

Binance's announcement says that Binance will be supporting ATOM staking from December 5:

The Binance team says that ATOM staking rewards will be distributed as follows:

  • Starting at 00:00 UTC on 5 December 2019, Binance will start taking hourly snapshots of users' ATOM balances (i.e. 24 snapshots each day).
  • The following two equations will be used to calculate the ATOM staking distribution:
    • "ATOM generated by each user = Total ATOM staking rewards received by Binance * User ATOM holdings ratio"
    • "User ATOM holdings ratio = User ATOM holdings / Total ATOM staked by Binance."

To qualify for staking rewards, users need to have at least 0.5 ATOM.

The first distribution will be calculated up to and including 1 January 2020, "with the total amount distributed equal to the staking rewards accrued on holdings during the period."

ATOM rewards will be determined on a daily basis (hourly snapshots) and paid out on a monthly basis; staking reward distributions will be completed "before the 20th of each month."

Binance's website says that the estimated annual yield for ATOM staking is 8–10%.

Effect of Binance's Announcement on ATOM's Price

According to CryptoCompare, ATOM is currently trading at $3.709, up 1.39% in the past 24-hour period:

ATOM-USD 24-Hour - 4 Dec 2019.png

Featured Image Courtesy of Binance


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