- Binance and Beget tease potential collaboration with Solana.
- These companies plan to introduce a new, flexible staking model.
- Liquid staking gives users more freedom.
Staking has become one of the most popular ways for cryptocurrency users to earn passive income from their tokens. However, to benefit from staking, users must lock their tokens for a certain period of time.
That’s about to change with a teaser partnership between Solana and popular exchanges Binance, Bitget, and Bybit. Their encrypted tweet shows how staking on Solana could become permanent for most users.
Binance, Bitget and Bybit launch new SOL tokens
Solana is cooking up something big with major exchanges. On Thursday, August 29, Binance, Bybit, and Bitget all posted cryptic tweets mentioning potential Solana-related tokens. Binance, the world’s largest exchange, simply tweeted “BNSOL.”
At the same time, Bitget and ByBit also tweeted, Bitget for example:Something BG is comingThe mention of “BGSOL” continues. Moreover, Bybit welcomed a new “baby” to the family with the mention of the token BBSOL.
The exchange did not reveal the purpose of the token, but it didn’t take long for clues to emerge. The BNSOL token appeared on Solana Compass, a platform that provides analytics on the Solana ecosystem. The website called the product Binance Staked SOL.
According to the description of the staking pool of the same name, BNSOL allows users to unlock their staked Solana, meaning they can earn rewards for their tokens and use them as they wish.
The Impact of the New Liquid Staking Model on Solana
Staking is a core element of Proof-of-Stake (PoS) networks like Solana. Staked tokens secure the network while providing income to validators. This is important because validators provide the computing resources to run the Solana network.
However, users need to lock their SOL tokens for a certain period of time to receive staking rewards, meaning they cannot be traded until the staking period ends. New liquid staking tokens such as BNSOL, BGSOL, and BBSOL change this.
By giving users more flexibility in the products they stake, a liquid staking token will make SOL staking more attractive. This will help secure Solana’s network while increasing demand for SOL and ultimately driving up its price.
On the other side
- Binance, Bybit, and Beget have not officially disclosed what the product is.
- If a new staking model becomes popular, it could put additional strain on the already struggling Solana network. Congestion problem.
Why this matters
For Solana, the success of the new liquid staking product will make staking more accessible and attractive, increasing network participation and security.
Learn more about other staking methods:
Solana finally starts re-staking. Why it’s key to decentralization
Learn more about the cryptocurrency lobby:
Crypto Lobbying Has Grow Tenfold, But It’s Still Catching Up