Daily Archives: June 17, 2022

The Sandbox native token, SAND, jumped from eight-month lows following Friday’s announcement of a collaboration between the metaverse and Lionsgate Studios.

As a result of the news, SAND surged as high as 20% to $0.9715, before reversing course to trade at $0.8647. The move helped SAND overcome a seven-day losing run in the face of gloom in the bear market.

Lionsgate is one of the biggest private studios in the United States, and it owns Rambo, Hellboy, and The Expendables, all of which will soon be featured in The Sandbox.

all hell breaks loose. lionsgate has entered @thesandboxgame pic.twitter.com/c1QcA2x3Y6

— Lionsgate (@Lionsgate) June 15, 2022

Suggested Reading | Bitcoin At $20K Could Be ‘New Bottom,’ Commodity Expert Suggests, And Here’s Why

The Sandbox (SAND) Soars 3.78%

At the time of writing, SAND was trading at 0.873, up 3.78 percent from its daily high of $0.9753. The 24-hour trading volume on the Sandbox was $269.75 million.

As of Friday, the circulating supply of SAND is 1.25 billion and the maximum supply is 3 billion.

Based on their increased production in the horror and action domains, the metaverse has devised a comprehensive transition plan, and Lionsgate will contribute to adapting its characters and captivating stories to web3-compatible platforms.

The Sandbox is a play-to-earn blockchain game that enables users to create a digital world on the Ethereum blockchain using non-fungible tokens.

The Sandbox allows players to create their own avatars to access the different games and destinations available. On the blockchain, it is the DeFi version of Minecraft.

Lionsgate is one of the biggest private entertainment studios in the United States. Image: Deadline.

SAND is an ERC20 utility token that enables the purchase and sale of LANDS and ASSETS within The Sandbox’s metaverse. It is also The Sandbox DAO’s governance token.

The Sandbox Guns For Over $4 Billion Valuation

The Sandbox, which is owned by blockchain gaming behemoth Animoca Brands, reportedly seeks to attract funds at a valuation of more than $4 billion.

The Sandbox reports that this deal will make Lionsgate the first major Hollywood studio to enter the metaverse.

This will not be The Sandbox’s first significant partnership, as it has already hosted material from Snoop Dogg, The Smurfs, and Adidas and sold LAND to financial institutions such as HSBC.

SAND total market cap at $1.06 billion on the daily chart | Source: TradingView.com

Crypto & Metaverse Going Stronger Despite Market Turmoil

Lionsgate’s Executive Vice President and Global Head of Live, Interactive, and Location-Based Entertainment, Jenefer Brown, commented on the innovative partnership:

“We’re thrilled by the new possibilities our strategic relationship with The Sandbox will offer our community.”

The bulk of cryptocurrencies have not been left behind as crypto markets continue to undergo a precipitous downturn.

In fact, cryptocurrencies with metaverse support, such as The Sandbox and Decentraland, have been in a stronger position as Metaverse and NFTs continue to gain popularity.

Suggested Reading | Ethereum Drops Below $950 On Uniswap Overnight – Here’s Why

Featured image from Actu Crypto.info, chart from TradingView.com

The crypto sector may be maturing, but regulatory clarity around the treatment of digital assets continues to remain cumbersome. 

This was recently highlighted by Commissioner Hester Peirce — also known as the United States Securities and Exchange Commission’s (SEC) “crypto mom” — in remarks she made at “The Regulatory Transparency Project Conference on Regulating the New Crypto Ecosystem: Necessary Regulation or Crippling Future Innovation?”

Peirce began her speech by emphasizing the importance of “regulating the new crypto ecosystem.” While this may be, Peirce also noted that the crypto industry is still in search of an actual regulator. She said: 

“A bipartisan bill announced last week attempts to answer that question. Some people in the crypto industry are celebrating the allocation of certain authorities to the Commodity Futures Trading Commission (CFTC) instead of the Securities and Exchange Commission. This view is likely rooted in a disappointment that the SEC has not used more proactively the authorities it already has to sensibly regulate crypto.” 

Everyone asks me when a spot bitcoin ETP will be approved. Here’s my answer: https://t.co/25M5kCDF1Q

— Hester Peirce (@HesterPeirce) June 15, 2022

After noting this, Peirce added that she is “hopeful that we can change course and use our existing and any prospective authorities wisely.” Yet, before explaining how this may be accomplished, Peirce was quick to point out that her criticisms on topics such as the denial of a Bitcoin (BTC) exchange-traded product (ETP) are targeted at the SEC Commission rather than the staff. “The staff appropriately is following the Commission’s lead, and the Commission has not been leading well,” she remarked.

Regulatory matters for crypto industry

While a number of digital asset bills have been passed this year, the first half of Peirce’s speech focused on the approval of a spot Bitcoin ETP in the United States, which she mentioned is the question she gets asked about most. While spot ETPs have successfully launched in other regions such as Europe and Canada — which saw 1 billion Canadian dollars in assets under management a month after its launch in 2022 — the SEC has continued to push back on this offering. 

Unfortunately, Peirce remarked that she still “has no idea” when the SEC would approve a spot Bitcoin ETP, noting that “the Commission has added crypto-specific hurdles to what used to be fairly straightforward processes for approving these pooled investment vehicles.” Moreover, while Peirce is aware that the Commission’s resistance to a spot Bitcoin product is difficult to understand, she noted that the Commission has “determined to subject anything related to Bitcoin.”

Indeed, while the U.S. crypto ecosystem continues to push forward, industry experts are still left pondering whether a spot Bitcoin ETP will soon be approved. Eric Balchunas and James Seyffart, an exchange-traded fund (EFT) analyst for Bloomberg, recently said that if crypto platforms fall under the SEC’s regulatory framework, a spot ETF may occur in mid-2023.

However, the bipartisan crypto bill, also known as the “Responsible Financial Innovation Act” that was introduced in the United States Senate on June 7, 2022, has yet to determine if the SEC or CFTC will be responsible for the allocation of digital assets.

Regardless, the push for a spot Bitcoin ETP remains a strong-willed battle, especially for digital asset management firms like Grayscale Investments. Michael Sonnenshein, CEO of Grayscale, recently said that the firm is gearing up for a legal fight if Grayscale’s Bitcoin spot ETF is denied by the SEC.

Shortly after this disclosure, Grayscale hired Donald B. Verrilli, a former U.S. Solicitor General, to join the firm to help push for a Bitcoin spot ETF. During a press conference at Consensus 2022, Verrilli went into detail about his plans to convince the SEC to convert Grayscale’s Bitcoin Trust into a spot-based ETF. 

According to Verrilli, the SEC’s approval of a Bitcoin futures ETF proved to be consistent with U.S. Security Laws, demonstrating that there was no significant underlying risk or fraud and manipulation. As such, Verrilli believes this created a situation where the approval of a Bitcoin spot ETF should be treated similarly to that of a futures ETF. He said:

“The Administrative Procedure Act is a federal statute that regulates the conduct of all federal agencies, including the SEC. It sets out rules about what kinds of procedures agencies have to comply with. One of the most fundamental of these is that the agency not be ‘arbitrary and capricious.’ There is a common sense understanding that it’s arbitrary and capricious to treat cases that are alike in a different manner, and that is what the problem is here for not granting approval of a spot ETF.”

Recent: Blockchain’s potential: How AI can change the decentralized ledger

Peirce further explained in her remarks that the SEC allowed futures-based Bitcoin ETFs to begin trading in October 2021, saying:

“Enabling the change was a clear signal from Chair Gary Gensler, who pointed to the 1940 Act protections, along with the CFTC’s oversight of the futures markets, as a key basis for his comfort with such products. These funds proved popular, but demand for a spot-based product remains because futures products are more expensive to manage and may not as closely track the spot price.” 

Peirce elaborated on the importance of a spot ETP, noting that this type of product “could enable retail investors to gain exposure to Bitcoin through a securities product that, because of the effective ETF arbitrage mechanisms, likely would track the price of spot Bitcoin closely.” She added that it would likely be inexpensive to manage such a fund, while sitting “conveniently in an investors’ brokerage account alongside other securities.” 

In addition to the approval of a Bitcoin spot ETP, regulatory clarity around stablecoins is becoming more important than ever before. This has become the case mainly due to the recent collapse of the Terra ecosystem. Senator Pat Toomey, the ranking member of the Senate Banking Committee, told Cointelegraph that the Terra collapse influences legislation in the sense that it serves as a “wake-up” call to the federal government.

“My own view is that algorithmic stablecoins should be treated separately from fiat-asset backed stablecoins. They are totally different creatures,” he said. However, Toomey added that there is currently no regulatory regime for asset-backed stablecoins. Yet, he believes this is important to establish, noting that stablecoins backed by traditional instruments like cash and securities plug into the conventional financial system.

Given this, it’s important to point out that Toomey recently drafted a regulatory framework for stablecoins, known as the Stablecoin Transparency of Reserves and Uniform Safe Transactions Act, or TRUST Act. This framework proposes that digital assets be identified as “payment stablecoins,” or a convertible digital currency used as a medium of exchange that can be redeemed for fiat by the issuer. While the TRUST Act remains a framework, Toomey mentioned that stablecoin regulation might appear at the end of 2022. 

Shedding light on this, Kevin O’Leary — venture capitalist and Chairman of O’Leary Ventures — told Cointelegraph that while the bipartisan bill sponsored by senators Cynthia Lummis of Wyoming and Kirsten Gillibrand of New York addresses stablecoin regulation, he thinks that the frameworks proposed by Toomey, along with the Stablecoin transparency ACT sponsored by Senator Bill Hagerty, will likely pass first:

“Both of these are the same in the sense that they only contemplate stablecoins. In terms of regulation, these suggest that stablecoins open themselves up for an audit every 30-days, and that no asset inside these tokens can be there longer than a duration of 12-months.”

According to O’Leary, this is a money-market strategy. He added that Circle’s USD Coin (USDC) stablecoin hasn’t broken its U.S. dollar peg, even with recent crypto market volatility and the Terra collapse. “There is a lot more promise today from something backed 100% by the U.S. dollar than there is from something algorithmically backed.” 

Enforcement actions short-cut regulatory process 

According to Peirce, the lack of regulatory clarity within the crypto ecosystem has proven that the SEC Commission requires a more productive path to regulation. “The Commission’s reluctance to approve a spot Bitcoin ETP is of a piece with its more general reluctance to build a regulatory framework for crypto using standard regulatory processes,” she stated in her speech. 

As such, Peirce pointed out that the SEC has “cobbled together a regulatory framework through enforcement actions.” Peirce demonstrated this by referencing the BlockFi and SEC settlement that took place in February 2022.

She noted that the SEC laid a foundation for BlockFi to register under the Securities Act, which, if successful, could likely become the standard for regulating crypto lending. While notable, Peirce explained that a better approach would have been to first identify crypto lending as implicating the securities laws and to then invite lenders and other members of the public involved with the case to discuss an appropriate path forward.

Toomey also mentioned that SEC Chair Gensler has been “pushing the limits of authority,” mentioning this last week during his press conference at Consensus 2022:

“I also think he has claimed that virtually all crypto assets are securities without explaining how and why that is so. This is not reasonable because it creates concern about an enforcement action without someone fully understanding what will result in enforcement action and what won’t. Regulation by enforcement is a terrible approach.” 

Optimism for change 

Given crypto’s current regulatory environment, it’s notable that Peirce concluded her speech on a high note, remarking that she is “optimistic that we can change course,” as long as both investors and the SEC take a more proactive approach. 

Although this “approach” remains rather vague, some examples of how this may take shape have come to fruition. For example, O’Leary explained that WonderFi Technologies, a decentralized finance (DeFi) platform, will become the first Canada-regulated digital asset exchange to be listed on the Toronto Stock Exchange (TSX).

Recent: Regulations and exchange delistings put future of private cryptocurrencies in doubt

“TSX has never listed a crypto exchange before, but invited WonderFi to list because they are fully compliant and there is institutional interest in the sector,” he said. O’Leary also mentioned that he believes cryptocurrencies will become the twelfth sector of the S&P 500 over the next decade because of the potential digital assets provide, such as reducing high fees and speeding up financial services in various economic sectors.

All things considered, the listing of WonderFi on the TSX is important for U.S. regulators because it demonstrates how investors can work with regulators to make strides in the industry. O’Leary also mentioned that G7 country regulators talk to each other daily, noting that he thinks the SEC views advancements in Canada as potential use cases that may work in the United States:

“Regulators in Ontario allowed the first Bitcoin and Ethereum ETF. If the SEC didn’t approve this, the Ontario Securities Commission never would have allowed this. The Ontario Securities Commission is proving to other jurisdictions that these products can be regulated and issued.” 

Blockdaemon, the blockchain node * infrastructure tooling platform, today announced the launch of Ubiquity V1, a new and improved version of its Ubiquity API suite.

Ubiquity V1 replaces previously used Beta version V2 and V3 endpoints. After August 12th, 2022, these old Beta version endpoints will no longer be available.

Unifying numerous improvements that have been made to the API suite, Ubiquity V1 produces a single, seamless user experience. The Blockdaemon blockchain engineering team has revamped Ubiquity to provide a stronger blockchain foundation than ever before.

Ubiquity is a core pillar of Blockdaemon’s complete ‘node stack’ – which connects businesses and devs to blockchains with one single integration.

How Will Ubiquity V1 Benefit Users?

Enhances Filtering Capabilities

Ubiquity V1 will allow for enhanced filtering capabilities. Specifically, there will be a greater ability to add filtering of different transactions going forward across chains such as BTC, LTC, and BCH.

Additionally, balances are all supported in Ubiquity V1.

Reduces Latency

With this iteration, Blockdaemon reduces API latency for users. This is achieved by taking a standardized endpoint approach across all protocols Ubiquity serves.

By reducing latency, Blockdaemon’s engineers further empower customers to build highly performant solutions based on the Ubiquity API.

Better UTXO Handling

UTXO is the accounting model for many of the world’s most popular cryptocurrencies. Ubiquity V1 will allow better handling of UTXO-based protocols.

This includes Litecoin, Bitcoin Cash, and Bitcoin. All of these are currently supported by Ubiquity.

Improved Usability

With this update, Ubiquity V1 ensures that every supported protocol has the same format.

Before this, ETH and BTC stood different. By streamlining the formats across all protocols, Blockdaemon engineers have designed a better user experience for developers.

V1: How to Get Started

All existing Ubiquity users are required to migrate integrations to V1.

To do this, change the API version number in the Ubiquity endpoint calls from the previous version (either V2 or V3) to V1. This must be done before the old versions are deactivated.

This change must be made to the Blocks, Transactions, and Account endpoints. After migrating the new code base to the new V1 format, users will enjoy all the benefits of Ubiquity V1 at no extra cost.

“For years, Blockdaemon’s engineers have crafted the best blockchain API possible. Our newest Ubiquity V1 iteration marks a new step forward for our gold-standard API. Soon, Ubiquity users will benefit from a better API experience.  By running Ubiquity V1, your services will ensure smooth and continuous performance, bolstered by a fully maintained, supported API suite. We are proud to roll out this exciting update. It is now available for all Ubiquity customers.”
– The Blockdaemon Team

For more information, see the Ubitquity Documentation.

Millions of investors worldwide enjoy the income created through staking rewards, an income paid to crypto owners who help regulate and validate a cryptocurrency’s transactions. Many DeFi protocols offer great incentives for those who stake cryptocurrency tokens and lock them into risky smart contracts by offering interest on investment and governance tokens.

To earn rewards, you have to participate in staking. The Coinbase staking reward system for eligible cryptocurrency lets you accumulate more coins as the Coinbase algorithm optimizes staking opportunities.

Read on to learn how to stake on the Coinbase exchange to increase your staking rewards significantly, choose the safest crypto assets, and more.

Let’s get started!

Consensus Mechanism

In a centralized system, like a DMV database, a central authority controls all the possible data and updates and is in charge of maintaining genuine records.

Conversely, decentralized systems, for example, blockchain networks, work without any single authority. Public blockchains operate as self-regulating systems by involving contributions from millions of participants globally who verify and authenticate transactions occurring on the blockchain. To ensure that all the transactions occurring on the network are genuine and that all participants agree on a consensus on the status of the ledger, these publicly shared ledgers need an efficient, fair, real-time, functional, reliable, and secure mechanism.

The mechanism that performs this important task is the consensus mechanism, which refers to a set of rules used to achieve agreement, trust, and security across a decentralized computer network.

Proof-of-Work (PoW) and Proof-of-Stake (PoS) are two of the most prevalent consensus mechanism algorithms, each of which works on different principles.

Proof-of-Work (PoW)

PoW is a common consensus algorithm that requires a participant node to prove that the work done and submitted by them qualifies them to receive the right to add new transactions to the blockchain. PoW is used by the most popular cryptocurrency network like Bitcoin. However, Bitcoin’s mining mechanism requires high energy consumption and a longer processing time, which raised a lot of controversy against it.

Proof-of-Stake (PoS)

PoS is a low-energy consuming alternative to the PoW algorithm, in which staking is used to validate transactions. It involves allocating responsibility in maintaining the public ledger to a participant node in proportion to the number of virtual currency tokens it holds.

In short, anyone holding a required number of coins can earn staking rewards and participate in validation, i.e., verify transactions as needed. As a result, crypto holders often choose to stake coins in the hope of earning interest instead of trading them.

How Does Staking Work

Staking is only applicable to blockchains that utilize the PoS consensus mechanism. Those who stake their crypto in a PoS blockchain are called validators. Validators provide value to the network by locking assets for an agreed-upon ‘staking period’ and earn rewards in return. PoS validators are selected based on the higher number of staked coins.

Staking pools

Individuals can start staking if they have enough assets needed to become a validator on the blockchain network. However, they can use staking pools if they want to participate in the staking activity without having to stake large amounts of a crypto token. A staking pool is a tool allowing stakeholders to pool in their tokens to give the staking pool operator a validator status and earn staking rewards for their computational resources’ contributions.

For example, staking on the Ethereum Network requires 32 ETH tokens, which equals approximately $40,000 and might be challenging for the average investor.

Mining Vs. Staking

The main difference between mining and staking is the underlying consensus mechanism used to validate transactions. Mining is used for PoW, and staking is used primarily for PoS.

Here are some of the differences between mining and staking:

How to Choose a Staking Platform

Staking rewards might promise easy money, but any trader should take extra care before choosing a staking platform. Making the wrong choice could result in losing staking rewards and, in some cases, the staked crypto as well. So here are some points to consider while making the decision:

• Do Your Own Research
  Take the time to do proper research before trusting your funds to a staking platform. Scammers are not uncommon, so never take the founder’s word as the only basis for your decision.
• Understand How Crypto Staking Works on Each Platform
  Read the platform’s terms and conditions carefully. Many issues are easy to overlook, such as: Is the wallet available without internet access? What is the minimal staking amount? Does the staked crypto have to go through a cooling period before it can be unstaked?
• Don’t Chase the Highest APY.
  High returns don’t equal safety. Take your time to choose a platform you can trust based on its experience, reputation, users’ reviews, and the possibilities to earn interest. Be careful and don’t chase the highest possible annual percentage yields or rewards without considering other factors.

We hope this Coinbase review by CoinStats might help you make an informed decision. You can also learn how to benefit from the system with articles like What Is DeFi.

Coinbase Staking

Coinbase is a secure, centralized platform for staking crypto that has been around for a decade. Coinbase features a mobile app, making staking on the go more convenient. However, business accounts are not eligible for earning rewards on Coinbase.

Let’s take a closer look at Coinbase staking and the rewards and tokens available for traders wishing to stake crypto.

How Coinbase Staking Works

First and foremost, you should create a Coinbase account to stake on Coinbase. The process is straightforward, and it takes a few mouse clicks and basic info to get started.

While going through a KYC (Know Your Customer) verification process is not mandatory for all users, Coinbase requires KYC verification for crypto staking.

Here is a short step-by-step guide to make things easier:

• Create a Coinbase account.

• Purchase major cryptos like Bitcoin (BTC) or Ethereum (ETH) using your bank account.

• Swap the BTC or ETH for the crypto you want to stake on Coinbase.
• Stake your tokens and earn rewards.

Read on to learn more about the specific rewards and distribution schedules each token has to offer. Additionally, Coinbase suggests bearing in mind a few essentials.

Essentials to Keep In Mind

• You might need to agree on specific terms and conditions to start staking some tokens. Read those conditions carefully.
• Users maintain full ownership of their staked crypto; however, Coinbase “may or may not” replace the staked ETH tokens, i.e., ETH2, in case of a slashing incident. The platform provides additional information on the matter.
• Coinbase retains the right to withhold a small amount of certain assets with “lockups at the protocol level.” The precaution is to ensure a user has liquidity and can cash out the crypto as needed.
• The platform charges a commission on all staking rewards. So, before staking cryptocurrency, make sure you read the User Agreement carefully, as it specifies all the possible fees and commissions beforehand.

Eligibility For Staking Rewards

Here are the main requirements for staking crypto on Coinbase:

• KYC verification: Each needs to have their identity verified.
• A minimal balance is customized for each crypto.
• The minimal balance can either be maintained on Coinbase or transferred from another wallet.
• Rewards are not available on Coinbase Pro, as opposed to Coinbase.com.

Tokens Available for Coinbase Staking

Currently, crypto investors stake Algorand (ALGO), Cosmos (ATOM), Ethereum (ETH), Tezos (TXZ), and Cardano (ADA) on Coinbase.

Rewards for Each Eligible Token

• Algorand (ALGO) shifted to a new reward model in 2022, which distributes the appropriate rewards quarterly or every 3 months instead of a daily system.
• Cosmos (ATOM) distributes the first payment within 7-14 days and every consecutive reward within 7 days.
• Ethereum (ETH) will credit the first reward after 14 days and daily reward snapshots afterward.
  NOTE: Ethereum Network has yet to transition to Proof-of-Stake fully; therefore, Coinbase issues the following warning on ETH staking:
  “ETH2 staking rewards will be reflected in your account under Lifetime Rewards and will be updated regularly. At this time, staking rewards won’t be added to your overall staking balance, and you won’t be able to access them.”
• Tezos (XTZ) takes approximately 35-40 days to issue the initial reward for staking XTZ and 3 days for every consecutive reward.
• Cardano (ADA) takes 20 days to issue the initial reward and 5 days for each consecutive reward.

The list of assets might change as the platform grows. All the changes are typically reflected on the Coinbase website and Coinbase mobile app.

Risks and Rewards of Crypto Staking

While staking cryptocurrencies is a rewarding endeavor, each trader should be fully aware of the risks it poses on any platform. So let’s talk more about the advantages and disadvantages involved in staking.

Rewards

• Passive income generation
  There’s nothing wrong with storing your crypto, hoping for price appreciation. Also, swapping one crypto for another is a no-brainer if you feel the alternative would serve you better. However, staking generates more rewards than the usual price appreciation.
• Easy and quick
  Staking is a quick and straightforward process. The starting amount can also be relatively small if a trader enters a staking pool instead of being a sole validator.

Risks

• Crypto prices are highly volatile, and price fluctuations could lead to a loss of funds. Use crypto portfolio trackers to keep up with the changing prices.
• The smaller the coin, the higher the volatility. This is why some smaller cryptos offer higher APYs. In other words, you adopt a high-risk/high-reward strategy while staking smaller cryptocurrencies that might not be acceptable for all traders.
• The staking process requires locking your funds for a certain period. If the asset depreciates during this time, you won’t be able to repair the damage.

Frequently Asked Questions

Can I trade or send tokens while they’re passively earning rewards?

Cashing out should be an option in case of crypto staking. However, it might be subject to several factors, including your general transaction history, account history, and banking history.

Occasionally, cash-outs and trades may be delayed while investors wait for Coinbase to unlock the funds in question. If the delay continues, each trader will get a notification on Coinbase.com and via the app or email.

Can I earn rewards while using a Coinbase vault? 

Yes, storing funds in a Coinbase vault can earn you rewards. However, that’s only the case if the crypto in question is eligible for rewards. Read above for a complete list of tokens available for staking on Coinbase.

Note: Storing ETH2 or ADA in a vault will NOT earn rewards at the moment.

Does the estimated reward equal the actual payout?

Your Coinbase account reflects an estimate of a possible reward based on the network’s description. However, the network’s actual distribution might differ from the estimate. The estimation is based on Coinbase’s prior staking performance for that cryptocurrency. 

Will the reward rate be constant? 

The reward rate can fluctuate depending on various factors primarily set by the protocol. Other factors influencing the rate include validator performance, amount of staking, inflation of savings rates, etc.

Are rewards guaranteed?

The Coinbase platform does not guarantee any staking rewards to any individual customer over time.

Are rewards from staking considered a taxable event?

Coinbase is subject to U.S. taxation laws, so U.S. customers, subject to U.S. tax reporting, must report their earnings from staking rewards. The Internal Revenue Service’s 1099-MISC is eligible for rewards over $600.

What is the Annual Percentage Yield, and how is it calculated?

Annual Percentage Yield (APY) is the percentage you get on top of the account as a reward for staking your funds, calculated annually. Also, the APY is a projection based on historically relevant calculations. Coinbase specifies that this rate is “set by the applicable asset protocol,” and Coinbase itself does not set, control, or influence it in any way.

Each network employs its own reward system and its own APY. However, as mentioned, Coinbase charges a commission on each transaction. All the details can be found in the user agreement.

Conclusion

Hopefully, by now, you have the answer to the question: How to stake on Coinbase? Staking is easy, but it carries substantial risks to consider. Even on the safest platform in the market, staking can still result in a loss of funds due to a token’s price depreciation.

However, amazing rewards are offered for staking the five tokens available on Coinbase.