Ethereum staking now available through Luno

You can now stake your Ethereum (ETH) through Luno and get weekly crypto rewards in Ethereum paid automatically into your Staking Wallet. It’s an easy and secure way to get rewarded for helping to ensure the integrity of the Ethereum network. 

What does it mean to stake Ethereum? 

When you stake cryptocurrency, you become what’s known as a validator. To qualify as a validator on a cryptocurrency network that uses proof-of-stake (POS), validators must lock up, or stake, a certain amount of cryptocurrency as collateral. You also usually need 32 ETH to qualify, but through Luno there are no minimum requirements.

Validators are fundamentally important to Ethereum. The more validators there are staking, the more secure the network is. This is because it becomes more difficult for any single validator or group of validators to force through an invalid transaction. You can join this group of validators by safely staking your cryptocurrency through the Luno app. 

How staking through Luno works

• Create a Staking Wallet: Create a Staking Wallet in the Luno app.
  
• Put in your crypto: Decide how much you want to stake.
  
• Earn staking rewards: Get Ethereum rewards straight to your wallet every five days. 
  

Luno has partnered with leading staking service provider Blockdaemon to stake cryptocurrency in the Luno Staking Wallets. To get started, you can easily transfer Ethereum into your Staking Wallet. 

The crypto you’ve added to your Staking Wallet is moved into a special blockchain address that’s dedicated to verifying transactions. It may take a few days before your Ethereum starts earning rewards, but when active, these rewards will be paid out every five days and added to the principal amount in your Staking Wallet. 

You can send any amount of Ethereum to the wallet and increase your rewards by doing so. The same goes for unstaking. You can unstake your coins whenever you want to, but it may take a few days before the request is actioned and your Ethereum is unstaked. Remember, staked coins can’t be accessed until they are unstaked. 

How much are validators rewarded? 

It varies depending on the amount of stakers on the network but you can earn rewards of up to 4% per year on the amount of Ethereum staked. 

Are there any risks involved with staking my Ethereum?

Ethereum relies on validators for its security, so it’s very important they keep their end of the bargain. For a job well done, they are rewarded in Ethereum. On the other hand, if they do a bad job of validating the network, say, by going offline or making mistakes when verifying transactions, the network takes a percentage of their staked coins as penalty.

Blockdaemon, Luno’s staking provider,  is one of the most trusted staking services providers in the industry with a track record of 99.9% uptime to date. Their validator node is monitored 24/7 with backup nodes on standby should anything happen. Due to these security mechanisms, slashing very rarely occurs, but in the unlikely event that your staked crypto is slashed, our staking provider has processes in place to review and remediate slashing penalties where it is commercially reasonable to do so. We’ll communicate the steps you can follow in the very unlikely event of this ever happening.

We have taken every precaution to minimise your risk, but it’s important to note that downtime and slashing can be caused by events outside of Luno’s control. Only stake your crypto if you are comfortable with this risk.

Keep reading 

What is staking? 

What is Ethereum? 

Why does Ethereum need you to stake crypto?

*Read more on our Terms of Use here: www.luno.com 
** Staking has not yet been assessed for Shariah compliance.