Binance has introduced an innovative way for Bitcoin holders to earn passive income through the **BTC On-Chain Staking Rewards Protocol**, launched **April 30, 2025**. This feature allows users to stake their bitcoins directly on the blockchain, contributing to the security of the Proof-of-Stake (PoS) network, earning rewards — without the need to rely on intermediaries or custodians.
How does staking on Binance work?
Unlike traditional staking, which is native to PoS blockchains (e.g., $ETH ), Bitcoin operates on Proof-of-Work (PoW). However, Binance's integration with the **Solv Protocol** allows BTC holders to participate in staking as follows:
1. **On-Chain Staking**: Your BTC is staked to secure PoS blockchains, earning rewards in return.
2. **No Custody Risk**: The process is decentralized, meaning you maintain control over your assets.
3. **Reward Mechanism**: Stakers receive income generated from network validation, similar to PoS staking.
**Key Benefits of BTC Staking on Binance**
✅ **High Security**: The Solv Protocol uses the economic value of Bitcoin to enhance the security of PoS blockchains.
✅ **User-Friendly**: The Binance interface simplifies staking, making it accessible for both beginners and experts.
✅ **Passive Income**: Earn rewards without active trading — ideal for long-term BTC holders.
✅ **Flexibility**: Unlike locked staking, some Binance Earn products allow flexible withdrawals (though terms may vary).
**How to Get Started**
1. **Log in to Binance**: Ensure your account is verified.
2. **Go to Binance Earn**: Select **Solv Protocol BTC Staking**.
3. **Subscribe and Stake**: Choose the amount to stake and confirm.
4. **Earn Rewards**: Returns are distributed based on network conditions and the amount of stakes.
**Risks to Consider**
⚠️ **BTC Volatility**: Price fluctuations can affect the value of rewards.
⚠️ **Lock-up Periods**: Some staking options may require locking funds for a fixed term.
DYOR