On September 23, major cryptocurrency exchange Binance posted that its onboarding XTZ (Tezos) onto its trading platform. Aside from the new listing, the exchange confirmed that new trading pairs for leading cryptos such as BTC (Bitcoin), USDT (Tether) and BNB (Binance Coin) would be available.
The announcement also served as a signal to users who want to deposit XTZ on their accounts. Meanwhile, trading would go live on September 24.
The notable CEO of Binance, Changpeng Zhao, retweeted the announcement and even posted a comment which left the crypto industry intrigued and excited alike. CZ is hinting on what would come next after the trading goes live.
One Twitter user guessed that CZ means Tezos staking would soon follow next. However, the CEO didn’t deny nor confirmed the suggestion; instead, he left a happy emoji in the comment section.
On a blog post, Binance described Tezos as a self-modifying Blockchain which can quickly adapt to protocol changes and can also upgrade itself. Furthermore, stakeholders have the power to vote regarding protocol amendments. They can also modify the voting procedure.
Notably, the Blockchain’s proof-of-stake consensus algorithm enables stakeholders to get involved in the validation of network transactions and ultimately reap the rewards.
Tezos reward structure
Baking is the term used for staking in Tezos. To bake new blocks means to create new blocks on Tezos Blockchain.
Tezos’ PoS allows stakeholders to take part not only in the baking process but also in the governance by assigning the coins to their preferred delegation service provider, regardless of the amounts of their holdings.
Staking Rewards further explained that while the delegation process is taking place, the stakeholder’s assets are set in such a way that they are correlated with the total service staking balance. Then, the rewards would be released by the network, and the stakeholders would be paid accordingly. If all the coins would be activated, baked, and assigned to a baker, Tezos would have an annual inflation rate of 5.5%.