Coinbase to Reward Users for Hodling

Coinbase users can now earn rewards for holding cryptocurrency, according to a company blog Wednesday. Tezos (XTZ) is the first token for which interests are charged,  with the interest rate of 5 per cent per annum.

Tezos uses a consensus proof-of-stake mechanism that rewards network users for holding their coins and thereby helps protect the network.

Five percent estimate is based on Tezo’s last 90 days of staking returns. The initial period of storage of coins is 35-40 days, after which the holders will be able to see the accrual of rewards, which will occur every three days.

Coinbase also added Tezos to the Coinbase Earn program, which is designed to educate users about cryptocurrencies and will distribute XTZ to participants  completing tasks. Coinbase soft-launched staking for both Tezos and decentralized finance token Maker (MKR) this March on Coinbase Custody.

The word ‘hodl’ was coined on BitcoinTalk on Dec. 18, 2013. Its author was a member named GameKyuubi, who created the thread “I AM HODLING”. Since then, writing this word with a mistake has become especially popular among crypto community.