PETALING JAYA: Luno, Malaysia’s leading regulated digital asset exchange, has launched Ethereum (ETH) staking, a way for customers to earn weekly ETH rewards for helping to ensure the integrity of the network.
Luno country manager for Malaysia Scarlett Chai said, “At Luno, we’re on a mission to improve our product continuously and we’re thrilled to be the first regulated exchange to bring staking to our Malaysian customers. Luno’s staking feature will launch in Malaysia initially with support for Ethereum. Customers simply open a staking wallet and are able to earn up to 4% per year in ETH by holding (hodl in crypto speak) ETH. The reward rate can fluctuate depending on the demand of the network as well as the number of active validators. Rewards will be rewarded weekly, so you can automatically grow your stake and compound your rewards.”
By staking, the rewards rewarded in crypto will grow customers’ crypto holdings.
While they are staked, customers cannot sell or send their coins, but they can “unstake” at any time and remove their coins from their staking wallets.
“Luno has always focused on making it safe and simple to buy, sell and store crypto. As a trusted crypto guide, we have made it as easy as tapping a button on the Lunoapp to open a staking wallet. There is a minimum deposit of 0.00001 ETH or RM1. This will appeal to those who are keeping their ETH for the long term,” says Chai.
Malaysia is Luno’s second country after South Africa to launch staking for its customers. It remains committed to driving the adoption of crypto by innovating and introducing new features and products with an emphasis on investor safety and customer experience.
What is staking?
Staking is a way of generating rewards on your crypto by helping to verify cryptocurrency transactions. You can stake cryptocurrency in projects that use a proof of stake consensus mechanism to process transactions, such as Ethereum.
The proof of stake consensus mechanism requires people to actively put their cryptocurrency to work in helping to secure the cryptocurrency network. To be able to verify transactions and get rewards, you have to have put up a certain amount of cryptocurrency before you can take part.
This effectively acts as a deposit to ensure you are validating the right transactions. If you do it right, you get a reward. If you validate flawed or fraudulent data, you may lose some of your stake as a penalty however we work hard to mitigate this risk by teaming up with trusted validator providers with industry-leading monitoring, failsafes, and protection in place.
What are the rewards?
Luno will offer an annual reward percentage of up to 4%* per annum on staked Ethereum, in Ethereum, though this will vary depending on network conditions.
Rewards are given every week. Luno doesn’t charge a fee to stake or unstake your cryptocurrency, but there is a staking service fee that is deducted from the reward customers receive.
Staking through Luno removes the technical and financial barriers to entry for ordinary people looking to earn rewards with a minimum of 0.00001 ETH or RM1 to stake. Customers can receive rewards on crypto without needing technical knowledge to set up staking.
“Before investing in any cryptocurrency, we recommend that customers should always do their own research and exercise good judgment. By adding staking, we are giving customers the opportunity to explore more of what crypto has to offer, and to continue advancing accessibility of crypto investing for Malaysians from all walks of life,” said Chai.
Luno will also be launching staking for Cardano in the coming weeks.