Tezos
$2.87 -5.16%
XTZ · 1w

Fireblocks Rolls Out Staking Rewards for Tezos

Announced Thursday, Fireblocks is partnering with staking infrastructure providers Staked and Blockdaemon to offer hosted proof-of-stake (PoS) services for Ethereum 2.0 and the popular Polkadot (DOT) and Tezos (XTZ) tokens.

Fireblocks, which raised $30 million in funding in November last year, uses a technique called multi-party computation (MPC) that protects cryptographic keys by splitting them into pieces, and which the company says is well suited to the dynamic business of blockchain token staking.

“We are launching staking wallets to Fireblocks customers who collectively hold a significant balance of crypto assets,” Fireblocks CEO Michael Shaulov said in an interview. He said that while the majority of Fireblocks’ over 165 clients have bitcoin, “between DOT, XTZ and ETH we have over $1 billion of assets” that can be staked.

The custodian’s clients include some of the large crypto lenders such as Celsius, BlockFi, Salt and Nexo. Fireblocks also provides custody to U.K.-based firms Revolut and B2C2, as well as Coinflex, Galaxy and a lot of smaller crypto hedge funds, Shaulov said. 

By participating in blockchain staking, token holders are required to have skin in the game by committing some of their assets on the network to verify transactions. Network validators can earn between 10%-15% yield on those assets, a tempting proposition for financial institutions in the current no-interest climate. 

More broadly, participants are betting on the next generation of finance; backing a given economic system is analogous, in some respects, to the way banks are required to post capital reserves in the traditional financial world today. 

Generating and managing various sets of validation and withdrawal keys is not for the layman, but the biggest pain about staking is maintaining constantly available infrastructure to verify transactions. Failure to do so results in a slashing of the validator’s stake. 

“For our clients, from an o...

Continue on coindesk.com
Recent news
XTZ -5.16% · twitter.com · 1h

P2P votes YES to Tezos Edo proposal #40

P2P has voted YES to the @tezos Edo proposal #40 in the promotion phase of the vote: https://t.co/JNcPzcSq87View the P2P Tezos vote 👇https://t.co/OpIOt9ZoVs $XTZ pic.twitter.com/3BMv67i9aT— P2P Valid...
XTZ -5.16% · forum.tezosagora.org · 3h

New Agora topic: nash equilibrium and governance

Could the threat of a hard fork be used to counterbalance the risks of plutocracy? For example, by burning the wallet balances of the “rich” to remove their voting influence? In other words, could the...
XTZ -5.16% · forum.tezosagora.org · 3h

New Agora topic: Impermanent Loss Thoughts

Why can’t a Liquidity pool be subsidized by a coin to deal with impermanent loss? If the price of the coins raises or falls by any percentage, you’re looking at some sort of impermanent loss that is h...
XTZ -5.16% · medium.com · 13h

IMtoken AMA with Arthur Breitman

Last Friday, we had Arthur Breitman join us on Wechat for an Ask-Me-Anything session. We translated the questions and Arthur’s answer below. Enjoy! Nour (imToken): Before we share our topic, let’s…
XTZ -5.16% · forum.tezosagora.org · 23h

New Agora topic: Tezos Foundation Staking Rewards

I’ve seen a few post about the TF holding too much power in terms of voting. I’ve seen ideas to burn or simply move the tokens to an undelegated account. I can’t say that I fully understand the implic...