Binance CEO hinted at staking Tezos (XTZ) as the major crypto exchange listed the cryptocurrency for trading on its platform.
XTZ deposits are now live
On Sept. 23, Binance officially announced the listing of Tezos, launching three new trading pairs featuring the major cryptocurrency Bitcoin (BTC), top stablecoin Tether (USDT) and Binance’s native token Binance Coin (BNB).
Following the announcement, users can start depositing Tezos on their accounts, while the launch of trading is scheduled for launch on Sept. 24, the exchange announced.
CZ hints at staking
Binance CEO Changpeng Zhao, also known as CZ, subsequently retweeted the news, intriguing crypto community with the comment: “You know what comes next, right?” After a user on Twitter suggested that the move means Tezos staking, CZ avoided to answer explicitly, rather expressing hit excitement with a happy emoji.
As described on Binance blog, Tezos is a self-amending blockchain that can evolve by upgrading itself, with stakeholders being able to vote on amendments to the protocol, including amendments to the voting procedure itself.
Tezos’ proof-of-stake (PoS) consensus algorithm allows every stakeholder to take part in the validation of transactions on the network and get rewards.
According to crypto staking-focused website Staking Rewards, staking in Tezos is referred to as “baking,” while baking new blocks means creating new blocks on Tezos blockchain.
Tezos’s PoS enables stakeholders to participate in the baking and governance process by delegating the coins to a delegation service of their choice even with the smallest amount of holdings.
While delegating to a delegation service, the owner’s holdings are set in correlation with the total staking balance of service and rewards are paid out accordingly after they have been released by the network, according to the website.
If all coins would have been activated and being baked or delegated to a baker, the yearly inflation rate of Tezos would be 5.5%, a post on Staking Rewards notes.
In early August, INDX — the Tokenized Masternode Investment Fund — released its calculations of the top-10 PoS blockchains based on the expected yield of their tokens, though Tezos was not included in the rankings.