Indian cryptocurrency community now has the chance to earn passive income merely by holding cryptocurrencies – referred to as staking.
Users with a minimum balance of 100 ONE tokens, one QTUM token and five TRON tokens are going to be eligible for staking.
An alternative to PoW, or mining, PoS is a system employed by some blockchains permitting users to hold coins within a cryptocurrency wallet to support the operations of the network reciprocally for newly minted coins.
In effect, staking is somewhat similar to purchasing government bonds reciprocally for a fixed yield.
CoinDCX said it’ll pool the holdings of multiple users as a way to extend their chances of receiving rewards.
While adding further, the co-founder of CoinDCX, Neeraj Khandelwal added:
“We want to form the process of staking very simple for our users.”
The exchange will aggregate staking rewards via partner exchanges like Binance, and also stake natively on blockchains, consistent with the recent announcement.
CoinDCX is the first firm to launch a staking product within India, consistent with Khandelwal.
On the other hand, an another Mumbai-based WazirX exchange’s founder and CEO, Nischal Shetty, also revealed the launching of its new staking offering later this month for Tron and EOS.
The annual returns from staking ONE, QTUM and TRX at CoinDCX are 8%–10%, 6%–10%, and 5%–10% respectively, the exchange added.
Exchanges have witnessed a gradual rise in trading volumes ever since the Supreme Court overruled the Reserve Bank of India’s ban on banking services for cryptocurrency firms earlier in the month of March.