KUALA LUMPUR: Luno has launched Solana (SOL) staking which allows its customers to earn SOL rewards every two days and passively grow their crypto investment portfolio.
Luno country manager Scarlett Chai said Luno's SOL staking is the third staking wallet available to Malaysian customers alongside Ethereum and Cardano.
"Customers open a staking wallet and can earn up to five per cent per year in SOL by simply holding. The reward rate fluctuates depending on demand on the network and the number of active validators. "
"Rewards are paid every two days in SOL, so you can automatically grow your stake and compound your rewards," said Chai.
While staked, customers cannot sell or send their coins, but they can unstake at any time by removing coins from their staking wallets.
Chai said Luno is focused on making it safe and simple to buy, sell and store crypto.
"There are no minimum deposits, all you need to do is sit back and put your SOL to work to earn rewards. Staking will appeal to those keeping SOL for the longer term," added Chai.
Cryptocurrencies that allow staking use a consensus mechanism called proof-of-stake to verify transactions securely.
A stake is used to ensure that transactions are not fraudulent.
To qualify as a validator, participants put up a certain amount of cryptocurrency as collateral.
Staking removes the need for crypto miners to churn through mathematical problems for verification, which is more energy-intensive.
Instead, transactions are validated by those who stake their tokens.
This ensures a more scalable mechanism for SOL.
Staking is also a way to support the long-term health of the crypto ecosystem, contributing to the security and efficiency of blockchain projects.
Luno does not charge a fee to stake or unstake cryptocurrency, but there is a staking service fee which is deducted from the reward customers receive.
"Before investing in any cryptocurrency, we encourage customers to conduct their own research and exercise sound judgment."
"With the expansion of our staking service to include Solana, our regulatory-first approach provides a safe and secure environment for customers to grow their crypto investment portfolio passively" Chai said.