Luno (Pty) Ltd, a licensed financial services provider and cryptocurrency investment platform, has introduced Solana (SOL) staking. This new feature allows customers to earn weekly crypto rewards, providing a passive method to grow their holdings.
Christo de Wit, Luno’s country manager for South Africa, commented, “Luno’s SOL staking is the third staking wallet available to South African customers, alongside Ethereum and Cardano. By opening a staking wallet, customers can earn up to 5% annually in SOL simply by holding (or ‘hodling’ in crypto terminology). The reward rate fluctuates based on network demand and the number of active validators. Rewards are distributed weekly in SOL, allowing users to grow their stake and compound their returns.”
While coins are staked, customers cannot sell or transfer them, but they can unstake at any time by removing coins from their staking wallets.
“Luno is dedicated to making it safe and simple to buy, sell, and store crypto. As a trusted cryptocurrency guide, we’ve streamlined the process of opening a staking wallet to just a tap in the Luno app. There are no minimum deposits; you simply put your SOL to work to earn rewards. Staking is particularly appealing to those holding SOL for the long term,” added de Wit.
Staking is enabled by cryptocurrencies that use a consensus mechanism called proof-of-stake to securely verify transactions. Participants put up a certain amount of cryptocurrency as collateral to qualify as validators. This process eliminates the need for energy-intensive crypto mining, as transactions are validated by those who stake their tokens, making it a more scalable mechanism for SOL.
Staking supports the long-term health of the crypto ecosystem by contributing to the security and efficiency of blockchain projects. By staking funds, participants help make the blockchain more resistant to attacks and improve its transaction processing capabilities.
Luno does not charge fees for staking or unstaking cryptocurrency. However, a staking service fee is deducted from the rewards customers receive. This enables users to passively earn crypto without needing technical knowledge to set up staking.
Operating a validation node is complex. Luno partners with a specialist who operates validation nodes within all main proof-of-stake networks to ensure secure staking for customers.
There are two primary risks involved in staking. First, validators must have their computers constantly available to ensure smooth network operation. Connectivity issues can lead to penalties. Luno partners with providers boasting a 99.9% uptime record to mitigate this risk.
Second, rewards are contingent on the uptime and performance of validators. Reduced uptime and performance can result in decreased rewards.
With the launch of SOL staking, Luno continues to enhance its platform, offering customers new ways to grow their crypto assets passively.
Main Image: Crypto Adventure
