Customers of South Africa’s *largest crypto investment app, Luno, can now stake ADA to get automatically rewarded with weekly payouts for helping verify transactions. This is the second staking option to be made available on Luno, with Ethereum staking launched in June 2023.
Christo de Wit, Luno’s country manager for South Africa, says, “Staking is a secure and easy way to passively grow your ADA investment – you simply create a staking wallet and can earn up to a maximum of 3% per year in ADA by holding (hodl, in crypto-speak) the coin. The reward rate will fluctuate depending on the demand on the network as well as the number of active validators. Rewards will be paid weekly, so you can automatically grow your stake and compound your earnings.”
Staking rewards are paid in cryptocurrency. While coins are staked, customers cannot sell or send their coins, but they can unstake at any time and remove coins from their staking wallets. There are no minimums to start staking.
“Luno has always focused on making it safe and simple to buy, sell and store crypto. As a trusted cryptocurrency guide, we have made it as easy as tapping a button on the Luno app to create a staking wallet with no minimum deposits. This could appeal to those who are keeping their crypto for the long term” says de Wit.
What is ADA?
ADA is the native cryptocurrency of the Cardano network. The Cardano network verifies transactions using a method called proof-of-stake, which requires validators to ensure that only valid transactions are recorded on the blockchain.
Validators are rewarded each time they verify a set of transactions, but can also be penalised for validating wrong transactions. Customers are rewarded with up to 3% per year of the ADA they stake, paid out automatically every week to their Luno staking wallets. They’re also contributing to the security of the Cardano network, making the cryptocurrency more usable and potentially helping to drive adoption.
Before investing in or choosing to stake any cryptocurrency, Luno recommends that customers should always do their own research and exercise good judgment. Cryptocurrency is volatile and ADA, as with any other cryptocurrency, may decrease in value due to market fluctuations.
How does staking with Luno work?
Staking through Luno removes the technical and financial barriers to entry for ordinary people looking to passively earn rewards and with no minimum value to stake.
Luno has partnered with a leading staking service provider which has been rigorously vetted to offer ADA staking. Customers transfer their ADA into their staking wallet. This cryptocurrency is then put up as a stake to validate transactions. Once your ADA is actively staked, you’ll receive weekly rewards, and they will be added to the principal amount in your staking wallet.
How do staking payouts work?
The amount you earn in staking rewards can vary depending on network conditions, but with ADA, you can earn up to 3% per year in a staking wallet. There is no minimum ADA holding required.
What is Cardano?
Founded by one of the co-founders of Ethereum, Cardano was developed through a scientific and peer-reviewed approach and aims to offer a more secure and scalable ecosystem to build and host decentralised applications.
For further information on Staking, see the Luno Help Centre here.