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Are Cryptocurrency Staking Rewards Today Just Like the Masternode Fad of 2017?

In 2017, masternodes were popular among many altcoins and seen as insurance against losses. Some commentators are saying the same thing is happening today with staking.

Binance CEO Changpeng Zhao recently retweeted a tweet comparing masternodes to staking rewards. “We are doing that masternode thing again!!” the user writes, in response to Binance announcing support for Algorand (ALGO) staking.

Binance offer many staking rewards with Proof of Stake (PoS) coins

Staking does look a lot like masternodes for exchanges, except this time they will be the ones responsible for distributing rewards. So-called ‘passive staking’ has become popular on Binance and beyond as a way to make added revenue on deposits. In effect, exchanges are able to operate multiple nodes (of which there are a limited amount of spots) which effectively run like a ‘masternode’ on the network with significant influence.

Of course, this is all dependent on the specificities of each proof-of-stake network. However, it seems as though in Zhao’s mind, proof-of-stake rewards are much like ‘masternodes + exchanges.’ Read More