Bitfinex Introduces Staking Support for EOS, Cosmos and V.Systems

Key highlights:

• Bitfinex is the latest major exchange to allow customers to benefit from staking rewards
• Cosmos, V.Systems and EOS are supported at launch
• Support for Tezos, Algorand and TRON has also been announced

The Bitfinex cryptocurrency exchange is now providing staking services for 3 different crypto assets. At launch, Bitfinex users are able to benefit from staking rewards for Cosmos, V.Systems and EOS, but Bitfinex says its customers will also be able to stake Tezos, Algorand and TRON in the future. Support for Tezos is coming in May, while Bitfinex provides no specific timeline for Algorand and TRON staking support.

For EOS and Cosmos, Bitfinex estimates that customers will receive a 1.5% - 3% on their holdings on an annual basis, while the figure for V.Systems staking is estimated at 8% - 10%. The rewards will be credited to users weekly.

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According to the exchange, users who hold the supported cryptocurrencies on Bitfinex will receive their staking rewards without having to take any additional steps. While the exchange will be taking a small portion of the staking rewards that are generated from their customers’ deposits, the rest will be credited directly to the customers’ Bitfinex accounts. If Bitfinex is staking through a third-party provider, the provider could also take a portion of the generated rewards.

With proof-of-stake gaining popularity, Bitfinex is certainly not the first exchange to offer staking benefits to its users – Binance, Coinbase and Kraken also allow their customers to benefit from staking rewards for some of their listed cryptocurrencies. 

Bitfinex claims it will be neutral on governance

As is usually the case when exchanges offer staking rewards to their customers, users will not be able to leverage their holdings on Bitfinex to participate in the governance process of the respective blockchain protocol. However, the exchange explains that it will be taking a neutral stance in regards to governance:

“For chains that implement governance mechanisms into their protocol, Bitfinex will not actively take part in any governance events using your tokens other than delegating to a trusted node of our choosing. Where we have partnered with a staking service provider, we will generally allow that service provider to make decisions regarding governance without our input.”

Customer funds that will be used for staking are held in cold storage, and Bitfinex says it will only be staking a portion of the tokens it holds.