Coinone has launched the nation’s first-ever Bitcoin staking service. This aims to give retail and institutional investors a remarkable new avenue for generating crypto rewards, without locking up their Bitcoin or losing liquidity.
According to The Korea Times on Friday, Coinone’s offering is the country’s inaugural Bitcoin staking product, leveraging the Babylon protocol. The protocol allows users to delegate their BTC to secure the network and earn Babylon’s native utility token, BABY, as a reward.
Breaking with traditional staking models, Coinone’s “flexible staking” product allows users to deposit, withdraw, and trade Bitcoin seamlessly, even while their assets participate in staking.
This innovation aims to cater to both active traders and long-term holders seeking passive income without sacrificing access to their cryptocurrency holdings.
How Coinone’s Bitcoin Staking Works
Unlike Ethereum or other proof-of-stake coins, Bitcoin’s proof-of-work mechanism does not support conventional staking. Coinone solves this by linking users with the Babylon protocol, a cross-chain PoS protocol. Here’s how it works:
- Users register for staking via Coinone, purchasing Bitcoin (BTC) worth at least 100,000 won ($72).
- Bitcoin is under delegation to Babylon to help safeguard its operations, earning users BABY tokens.
- No lock-up periods, as users can deposit or withdraw BTC at will, making “flexible staking” ideal for those who demand both liquidity and rewards.
Coinone has tied the launch to an overhaul of its staking service branding, renaming existing products to “Flexible Staking” and “Fixed Staking. Additionally, the Korean exchange has updated its user interface to enhance transparency and usability. Investors can actively track their staked assets and rewards through the platform’s asset dashboard, providing a seamless and informative experience.
By unlocking yield generation for the most established cryptocurrency, Coinone is positioning Korea as a global leader in crypto innovation. In an environment where regulatory clarity has long been a challenge for local exchanges, Coinone’s secure, compliant, and user-friendly approach may inspire competitors.
It could also bring more mainstream investors into the Bitcoin ecosystem. The introduction of flexible staking and liquid rewards promises to transform the way Korean crypto traders approach asset management, combining security, income, and accessibility.
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