Cardano (ADA) is currently among the best-performing token in the top-10 rankings by market capitalization amid the announcement of future token staking capability on Coinbase Custody.
ADA Staking on Coinbase Custody Coming in Q4 2020
In a tweet published on Friday, Input Output Hong Kong (IOHK) — the Cardano parent company — announced a partnership with Coinbase Custody to list the ADA token later in the year. As part of the agreement, ADA “bagholders” will be able to enjoy token staking functionality while enjoying robust cold storage on the Coinbase Custody platform.
— IOHK Media (@IOHKMedia) July 2, 2020
Commenting on the significance of the move, IOHK tweeted:
“This custody agreement allows us to offer the same secure storage solutions that can be found in traditional finance to ADA holders, without sacrificing what makes Proof of Stake blockchains special – being able to participate in the network.”
According to the announcement made during the Cardano 2020 Virtual Summit, ADA staking on Coinbase will begin in Q4 2020. Proof of Stake (PoS) blockchains utilize staking as their incentive mechanism. Unlike with proof-of-work (PoW) networks, staking entails contributing a pool of funds to validate transactions while earning rewards for securing the altcoin network.
The Coinbase Custody partnership is also the latest in a string of developments concerning the Cardano project. Vocal IOHK founder Charles Hoskinson has been talking up the merits of the altcoin network in recent times, even going as far as to demand that the crypto community not associate him with the Ethereum blockchain.
Cardano Shelley Upgrade Imminent
Following the announcement, ADA price is up by over 5% making Cardano among the highest gaining top-10 altcoin token over the last 24 hours. Since entering the top-10 rankings by market capitalization in early June, Cardano has gained 25%, even rising two spots higher.
Part of the positive price run has come amid anticipation of the project’s planned Shelley upgrade which will see Cardano reportedly becoming fully decentralized, replacing the federated architecture of the Byron protocol. The current testing phase will reportedly give way to the mainnet launch later in July with staking functionality rolling out in August.
According to the Cardano roadmap, the decentralization brought on by the emergence of the Shelley epoch will separate the project from other PoS altcoins. Staking pools on Cardano after Shelley comes online will reportedly reach an equilibrium of 1,000, allowing for a more equitable reward distribution regime.