Binance to add zero fee Tezos staking

Binance announced today that it will add support for Tezos staking beginning tomorrow, Dec. 4. The staking rewards will be calculated daily and distributed monthly, with the first distribution to be completed before Jan. 1, 2020. Distributions will be completed before the 20th day of each of the following month. Users must hold at least one XTZ to qualify for staking rewards.

Why it matters:

• The news comes off the back of Coinbase’s Nov. 7 announcement adding support for Tezos staking. Coinbase Tezos staking was over 3x oversubscribed late November, signaling substantial demand for passive income opportunities on otherwise idle cryptocurrencies on exchanges.
• Coinbase and Gate.io charge 25% and 33%, respectively for their Tezos staking services. Interestingly XTZ will be the first token that Binance will not be charging fees for. Zero fee staking could reflect a shifting strategy towards staking for Binance, conceptualizing it more as a customer acquisition tool than a source of income.