#SoftStaking

In the ever-evolving world of cryptocurrencies, staking is of paramount importance when it comes to earning rewards. Staking literally means “risking” one’s capital for some gain in the future. In crypto finance, the term implies locking one’s digital assets on a PoS (proof of stake) blockchain like Ethereum, Cardano, Solana, etc. for a fixed time to earn some passive income.

Soft Staking is a new concept introduced by a few centralized exchanges, notably Binance, to eliminate the risks out of staking. On the basis of being completely risk-free, this new type of staking is also referred to as flexible staking. You can earn passive rewards on your spot holding, and yet you can trade and withdraw the specific cryptocurrency at any time you desire.

The exchanges claim that the rewards are generated through the on-chain proof of stake mechanism and then distributed in the respective native tokens to the holders on daily basis. The calculation of rewards takes place in an automated manner, usually by taking screenshots of the specific holdings into the account.

Different exchanges have different criteria for rewarding the holders. Generally, an exchange offers soft staking on its native token, in addition to other notable digital currencies on PoS blockchain. Binance currently offers soft staking on $BNB , $SOL , $ADA , $SUI, $TON, $S, $POL, $ALGO, $NEAR, and $AXS.