Cosmos staking rewards are now available on the Coinbase crypto exchange and customers can now earn up to 5% starting today. In our cosmos news today, we are reading more about the latest addition to Coinbase.
Cosmos is an ecosystem of proof of stake blockchains and has a goal of creating an Internet of blockchains. By using multiple blockchains, Cosmos hopes to provide a scalable alternative to current blockchain platforms such as Ethereum which often has a hard time supporting high numbers of transactions.
Now, with the Cosmos staking rewards available, the users can earn them very simply. All they have to do is to hold Cosmos tokens in their accounts and they will automatically receive the rewards with a rate of five percent APY. Coinbase added support previously for the rival proof-of-stake blockchain platform TEzos and by May the exchange gave out more than $2 million rewards in the native currency.
Proof of stake blockchains allow the coin owners to stake their coins in order to participate in the running of the network. In return, they will receive coins but if they act maliciously they will lose their coins. The concept is designed to encourage the decentralized network of support while having centralized exchanges act as a third party on the users’ behalf which undermines it some degree. Staking rewards have been linked to “interest” but there are a few differences. The new tokens come out of inflation so there’s no new value being created. While someone staking Tezzies will see an increase in their number, the total value could drop because of the fluctuating crypto prices.
As previously reported in the Cosmos news, Cosmos’ founding team broke apart earlier this year but the project didn’t fell apart when they engaged in a scathing feud. Jae Kwon accused Zaki Manian of blasphemy over whether the software was “godly” and demanded that he renounces his “self-professed godliness.” Kwon did not respond to requests for comment by press time and most tokens are connected to their celebrity creators so how did Cosmos fade into the expansive graveyard of the once very demanding projects? Manian said that it is pointless to continue the corporate structure saying that the dramatic breakup of the Cosmos’ founding team into three companies, could actually benefit Cosmos.
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