- 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 must lock up their tokens for several months.
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This will change with the teased partnership between Solana and popular exchanges Binance, Bitget, and Bybit. 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.”
Bitget and ByBit tweeted about it, 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, clues quickly appeared. The 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, who 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. They can’t trade these tokens before the staking period runs out. The new liquid staking tokens like BNSOL, BGSOL, and BBSOL have changed this.
Liquid staking tokens will make staking SOL more attractive by giving users more flexibility with staked products. 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 the products.
- 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
