- Binance and Bitget tease potential Solana collaboration.
- The companies will introduce a new, flexible staking model.
- Liquid staking gives more freedom to users.
For crypto users, staking has become one of the most popular ways to earn passive income from their tokens. However, to benefit from staking, users have to lock up their tokens for a set number of months.
With the teased partnership between Solana and popular exchanges Binance, Bitget, and Bybit, this will change. Their cryptic tweets reveal how staking for most users on Solana may change for good.
Binance, Bitget, and Bybit to Release New SOL Tokens
Solana is cooking something big with major exchanges. On Thursday, August 29, Binance, Bybit, and Bitget all posted cryptic tweets referencing potential Solana-related tokens. Binance, the world’s largest exchange, simply tweeted “BNSOL.”
At the same time, Bitget and ByBit tweeted too. Bitget, for one, stated that “Something BG is coming,” followed by a reference to “BGSOL”. Moreover, Bybit welcomed a new “baby” to the family, mentioning a token BBSOL.
While the exchanges did not reveal what the tokens would be for, it didn’t take long for clues to appear. BNSOL token appeared on the Solana Compass, a platform providing analytics for the Solana ecosystem. Its website referred to the product as Binance Staked SOL.
According to the description of the staking pool with the same name, BNSOL will allow users to unlock their staked Solana. This means that the users will be able to get rewards for their tokens, while also spending them however they want.
What The New Liquid Staking Model Means For Solana
Staking is a key element in Proof-of-Stake (PoS) networks like Solana. Staked tokens secure the network while also providing income for validators. This is key, as validators provide the computational resources for running the Solana network.
However, for users to get staking rewards, they need to lock up their SOL tokens for a set amount of time. This means that they can’t trade these tokens before the staking period runs out. The new liquid staking tokens like BNSOL, BGSOL, and BBSOL, change this.
By giving users more flexibility with staked products, liquid staking tokens will make staking SOL more attractive. This will help secure Solana’s network, while also boosting demand for SOL, and consequently its price.
On the Flipside
- Binance, Bybit, and Bitget did not officially reveal what the products would be.
- If the new staking model becomes popular, it could place additional strain on the Solana network, which has already experienced congestion issues.
Why This Matters
For Solana, the new liquid staking product, if successful, will enhance network participation and security by making staking more accessible and attractive.
Read more about another staking method:
Solana Finally Gets Restaking: Why It’s the Key to Decentralization
Read more about crypto lobbying:
Crypto Lobbying Rose Tenfold, But It’s Still Just Catching Up
