Binance to distribute 9.5 million Stellar Lumens earned from staking, will add XLM staking support

Binance to distribute 9.5 million Stellar Lumens earned from staking, will add XLM staking support

Binance, the world’s largest cryptocurrency exchange by trading volume, recently revealed that the platform had earned 9.5 million Stellar Lumens (XLM) from staking the cryptocurrency.

$775,000 of XLM Will Be Distributed to Binance Users

In August 2018, the Stellar team advised Binance’s management regarding how to earn staking rewards by changing various parameters on the exchange’s hot (online) crypto wallets and cold storage (offline) wallets.

After following Stellar team’s recommendations, the Binance platform managed to earn $775,000 worth of XLM tokens (at current market prices). Binance documented the amount earned each week from staking XLM since August 31, 2018.

Adding Support for XLM Staking, Distributing 9.5 Million XLM Earned from Staking

The Binance team is now planning to add staking support for XLM on its platform, and the leading exchange will also share the 9.5 million XLM it earned through staking. Currently, Binance’s platform distributes NeoGas for NEO stakeholders, Ontology Gas tokens for Ontology investors, BitTorrent tokens for TRON investors, and VTHO (“VeThor”) tokens for VeChain holders.

Binance’s management noted that staking multiple cryptocurrencies on its platform can be rewarding, and even HODLing certain tokens may allow users to generate a substantial amount of passive income.

Stellar Lumens Staking Support Begins on July 20

On July 20, 2019, Binance’s platform will begin supporting staking for Stellar Lumens, and it will take daily snapshots of users’ XLM balances in their exchange wallets. The Binance team intends to check customers’ Stellar account balances for a 40-day period.

On Sept. 1, 2019, the average user XLM balances will be tallied based on the snapshots collected. Binance’s management will then complete the distribution of customers’ XLM rewards earned from staking.

Users Must Have XLM in Exchange Account to Receive Rewards

Notably, Binance will distribute the 9.5 million Stellar Lumens it generated through staking to all platform users who maintain XLM balances in their exchange wallets, beginning on July 20, 2019.

As explained by the Binance team, users who stake XLM tokens will receive a “bundled bonus” payment of XLM staking rewards. The bundle will include users’ monthly staking rewards from the 40-day period. Additionally, users will receive some XLM tokens from the one-time distribution of 9.5 million Stellar Lumens tokens

The distribution will begin on September 1, with the XLM tokens being shared “proportionately” among the exchange’s users.

Stellar | XLM

Updated: Jul 18 at 5:21 am PDT
$0.09
12.59%

Stellar, currently ranked #10 by market cap, is up 12.59% over the past 24 hours. XLM has a market cap of $1.71B with a 24 hour volume of $397.26M.

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Stellar is up 12.59% over the past 24 hours.

Filed Under: Binance, Price Watch, Stellar
Omar Faridi

Omar enjoys writing about all topics related to Bitcoin, blockchain, and cryptocurrency. He is most interested in crypto regulations, quantum resistant blockchains, and Ethereum and Bitcoin Core development. His academic background includes an undergraduate degree in computer science from the University of Nevada and a masters of science in psychology from the University of Phoenix. He works as an application developer for the University of Houston and a data storage specialist for Dell EMC.

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