What is the Bitfinex Staking Program?
Bitfinex offers a soft staking program allowing users to earn rewards by holding certain digital tokens.
Weekly rewards can be earned by holding the staking supported tokens on the platform. Users are able to trade, offer margin funding, and continue using the tokens as they normally would within the platform and still receive their rewards.
For information on what staking is and how it works, please feel free to read our blog article Bitfinex guide to cryptocurrency staking.
- How frequently will I receive staking rewards?
Staking rewards are paid out weekly. We will take a mid-week account balance snapshot and distribute the rewards based on the number of tokens being held at that time.
Please note that staking rewards are calculated and distributed to Bitfinex by the token network. There is not any fixed rewards distribution timeline and policy that determine who receives the rewards. Therefore, Bitfinex does not guarantee that you will receive staking rewards every week or consistently.
- Is there a minimum/maximum digital token holdings requirement to start staking?
There is no minimum to begin staking with us. However, to avoid unnecessary stress on our system, we do set a minimum amount of staking rewards before you become eligible to receive a staking reward. That threshold is generally set at a number of tokens that is valued at around US$0.50 (the "Minimum Reward") per token per week. If, based on the number of tokens you have staked, the amount of the staking reward is less than the Minimum Reward you will not receive a staking reward for that week.
- Do I have to pay fees to use this service?
No. We keep a small portion of the staking rewards we collect and deposit the rest into the accounts of our users. In some cases, our staking service provider also retains a portion of rewards collected by the digital tokens we stake.
- Is it safe and how does Bitfinex stake my digital tokens?
Yes, the staked digital tokens never leave our cold wallets. To further minimize risk (e.g., from slashing and to ensure we can accommodate withdrawals) we only stake a portion of the digital tokens we hold. Every digital token has its own way of implementing the staking mechanic, but the process usually begins with us using our cold wallet funds in order to delegate votes to a chosen validator node. Staking provides a layer of governance to its network participants which helps to make the network more secure and for that, network participants are rewarded.
- So I just leave my digital tokens in my Bitfinex account and they earn rewards?
Yes, if your tokens are NOT Ethereum. Every week, we’ll distribute the staking rewards we collect to users who held the staked digital tokens in their Bitfinex account. You don’t have to do anything in particular.
If you want to stake Ethereum, you’d need to convert your ETH into ETH2 first. Please refer to our guide Ethereum 2.0 Staking for detailed information on how to start staking your Ethereum holdings
- Who makes the governance decisions with my tokens?
For chains that implement governance mechanisms into their protocol, Bitfinex will not actively take part in any governance events using your tokens other than delegating to a trusted node of our choosing. Where we have partnered with a staking service provider, we will generally allow that service provider to make decisions regarding governance without our input.
- Will I still be able to trade or withdraw my staked tokens?
It depends on the tokens you’re staking. For tokens other than Ethereum, you are able to trade your staked tokens. Although some staked tokens are “locked” for a period of time, depending on the protocol.
To accommodate withdrawals, we only stake a portion of the digital tokens we hold. In the unlikely event that withdrawals by other users exceed the “un-staked” portion of the tokens we hold, withdrawals may be delayed until the staked tokens are released. The duration of the potential delay would depend on the applicable protocol.
If you are staking Ethereum, you will not be able to withdraw your staked ETH because of the way the Ethereum protocol works. Once you choose to stake ETH, that decision is final and irreversible. The ETH you stake through Bitfinex’s staking service will be converted to an ETH2 balance in your account once they are successfully staked. Rewards earned on staked ETH will be reflected as a balance of ETH2 Rewards in your account. ETH2 and ETH2 Rewards balances cannot be withdrawn but there is a market for trading ETH2 on Bitfinex. Please refer to our token specific terms for ETH2 and ETH2 Rewards for more detailed information.
- How do I stake Ethereum (ETH2)?
In order to stake ETH2 you must opt in. ETH2 staking is highly experimental and risky. Please ensure you independently assess, understand and accept the related risks before deciding to stake.
Please refer to our guide Ethereum 2.0 Staking for detailed information on how to stake ETH2.
For more information on the Bitfinex Staking Program, please refer here: https://staking.bitfinex.com/