Coinbase will share surprise prizes to users to get prizes only by holding the following cryptocurrency, starting with the Tezos token (XTZ).
According to the company's blog, Coinbase said that US customers (except for residents of Hawaii and New York) could carry out a stake smart platform platform with an estimated annual return of 5 percent.
Tezos uses an alternative consensus mechanism for mining proof-of-work - a system built into the largest cryptocurrency based on market capitalization, bitcoin. Called proof-of-stake, this alternative mechanism rewards network users for holding coins and thus helps protect the network.
Coinbase's 5% estimate is based on the last 90 days of Tezos staking results. The company also notes that there is an initial detention period of 35-40 days, after which stake makers will begin to see prizes that appear in their accounts every three days.
Bursa also added Tezos to Coinbase Earn, a program that aims to educate the public about crypto, and will provide XTZ to participants who complete educational videos.
Coinbase staking soft-launching for Tezos and decentralized finance token Maker (MKR) this March at Coinbase Custody.
Coinbase Custody specifically caters to institutional clients who hold large quantities of crypto.
Coinbase also recently set an interest of 1.25 percent on USDC stable users who want to hold or hold the coin in Coinbase.