Binance Will Distribute $775,000 Worth Of XLM Tokens To Its Users
The largest cryptocurrency exchange to date, Binance, announced that the company is planning on distributing nearly ten million Stellar (XLM) tokens. The reason — Binance unknowingly received dividends from the Proof-of-Stake algorithm of Stellar. The discovery comes as Binance prepared for Stellar (XLM) support and changes to both Binance’s hot and cold wallets.
Binance has put their tokens for staking — the way transactions on the Stellar blockchain are being validated. The Proof-of-Stake (PoS) algorithm uses staked tokens, rather than computing power, which users provide to “mine” Proof-of-Work cryptocurrencies and verify the transactions over the blockchain.
Recently, Ethereum has announced that the development team behind the project is preparing a migration for Proof-of-Stake, also known as Ethereum 2.0.
Shortly after the discovery, Binance decided to go all-in on support for XLM staking. Any user with 10+ XLM tokens will receive a share of the distribution from Binance, but only if they are in possession of the tokens before 20th July. Each user will receive a proportional amount of XLM tokens based on their average daily XLM holdings.
Starting from July 20th, Binance will take daily snapshots of its XLM holding user base and will calculate the reward by multiplying the user XLM holding ratio with the total amount of XLM staking reward.
The first Airdrop, which is planned to be launched on September 1st, will distribute the initial 9,500,000 XLM tokens plus the earnings that users make during the 40-day period from July 20th to September 1st.