Soft Staking is a type of crypto staking where users earn rewards simply by holding tokens in their wallets or on supported platforms, without locking or delegating them to a validator.
It’s different from traditional staking (Hard Staking) where:
Tokens are locked or bonded.
There’s a minimum lock period.
You need to unstake (often with a cooldown) to regain liquidity.
Soft staking typically works through:
Centralized exchanges (e.g., Binance, Coinbase, KuCoin).
On-chain protocols that auto-distribute rewards.
Delegated staking services where your wallet qualifies for staking rewards without needing action.
The network or service tracks wallet balances and periodically issues rewards based on snapshot balances.
