Kraken Cranks Up the Rewards: Earning BABY Tokens on Your Bitcoin
Crypto Exchange Kraken Introduces Bitcoin Staking, Offering BABY Tokens as Rewards
Hey there crypto enthusiasts! Kraken, the San Francisco-based giant in the crypto exchange world, has some exciting news for Bitcoin owners. As of their latest announcement, you can now stake your Bitcoin on their platform and rake in rewards in the form of Babylon's native BABY token.
kioming recently reported on Babylon, a crypto startup that was raising funds to enable Bitcoin investors to stake their assets, and BABY is indeed their project’s native token.
Staking is the process of pledgingproof-of-stake (PoS) coins or tokens to a network to help it function, and the rewards you receive could potentially increase in value. For example, if you hold PoS assets such as Ethereum or Solana, you can pledge them to the network by sending them to a specific blockchain address and may receive rewards as long as you keep them locked up.
However, Bitcoin isn't a PoS coin; instead, it uses a proof of work consensus to process transactions on the blockchain. But with Babylon's technology, Kraken customers will be able to use their Bitcoin as collateral to secure PoS networks. In other words, you can earn rewards without sacrificing the native status of your Bitcoin!
The Bitcoin staking feature is currently available in the United States (excluding a handful of states), the United Kingdom, Australia, and the United Arab Emirates. Kraken's Global Head of Consumer Mark Greenberg emphasized that this move not only benefits clients with an opportunity to earn a return on their Bitcoin but also supports the broader ecosystem by enabling emerging PoS blockchains to benefit from Bitcoin's economic weight while validating transactions and enhancing network security.
Here's a quick summary of the key details:
- Users stake their Bitcoin directly on Kraken, with the BTC remaining on the native blockchain.
- The staked BTC is locked in a vault and delegated via the Babylon protocol to secure PoS networks.
- Rewards for staking are paid weekly in BABY tokens, with an approximate yield of 1% APY.
- Users retain full ownership of their BTC throughout the staking period, and unstaking triggers a 7-day unbonding period.
- The staking process is non-custodial, ensuring users keep control over their assets while the smart contract system manages rewards and staking securely.
So, if you've been sitting on a pile of Bitcoin and looking for ways to earn some passive income, Kraken's new offering could be just the thing you've been waiting for! Happy staking, and stay green!
[1] Kraken's Official Announcement: https://kraken.com/staking/bitcoin[2] Decrypt's Article on Babylon: https://decrypt.co/resources/babylons-bitcoin-staking-protocol-explained[3] Babylon's Whitepaper: https://babylonprotocol.com/whitepaper.pdf[4] Kraken's Staking FAQ: https://support.kraken.com/hc/en-us/sections/4407034640045-Bitcoin-BTC-Staking[5] Kraken's AMA on Bitcoin Staking: https://www.youtube.com/watch?v=J_NCJDvjTz4
- Kraken's Bitcoin staking feature allows crypto enthusiasts to earn rewards in BABY tokens by staking their Bitcoin on the platform.
- The native BABY token is associated with Babylon, a startup that aims to enable Bitcoin investors to stake their assets.
- Staking involves pledging coins or tokens to a network to help it function, and it could potentially increase in value, such as with Ethereum or Solana.
- Despite Bitcoin not being a proof-of-stake coin, users can still earn rewards through Kraken's platform using Bitcoin as collateral to secure PoS networks.
- The Bitcoin staking feature is currently available in the US, UK, Australia, and UAE, with rewards paid weekly in BABY tokens, providing an approximate yield of 1% APY.
- Users retain full ownership of their BTC during the staking period, and unstaking triggers a 7-day unbonding period.
- The staking process is non-custodial, ensuring users keep control over their assets while the smart contract system manages rewards and staking securely.
- If you're looking for ways to earn passive income with your Bitcoin, Kraken's new offering could be an ideal opportunity for you.
