The introduction of Dogecoin (DOGE) “locked staking” by Binance caused considerable confusion on social media. A well-known Dogecoin supporter named Mishaboar warned investors to avoid the exchange’s most recent endeavor. Mishaboar questioned how tokens of a proof-of-work-based scheme might be staked.
The exchange has come forward, though, and clarified the situation. The tokens would remain under the exchange’s control and would not be loaned out for additional profit, according to the exchange.
Via a mail to CoinDesk, Binance’s spokesperson said,
“There is no on-chain staking of LTC and DOGE for network validation since these are non-proof-of-stake tokens. The user funds remain with BINANCE and we have very strict risk management controls to ensure their security.”
He said that Binance is the source of the APR rewards. Many people weren’t happy with the program’s ambiguous wording when it was first announced. Billy Markus, the creator of Dogecoin, also criticized the announcement.
Oh boy. @Binance announced another “holding” program. This one is referred to as “Locked Staking”, and it allows you to “stake” LTC and Dogecoin.
How is that even possible, when #LTC and #Dogecoin are PoW cryptos? Are you “staking” Binance-pegged tokens?
Stay away! pic.twitter.com/SnAT7KSJoa
— Mishaboar (@mishaboar) July 19, 2022
Cryptocurrencies like Dogecoin, Litecoin (LTC), and Bitcoin (BTC) do not support staking since they use a proof-of-work consensus method. In the meantime, validators stake their tokens as part of the proof-of-stake (PoS) consensus mechanism to protect the network. Polkadot (DOT), Cardano (ADA), and Ethereum 2.0 are examples of PoS blockchains. The launch of Ethereum 2.0 is expected in September of this year. Nevertheless, the “merge” has enraged investors, driving up the price of tokens by as much as 36.6 percent over the past week.
Another version of Dogecoin’s core has been made available. The 1.14.6 update will increase the DOGE network’s security and effectiveness. Along with the security updates, the fee structure has also been altered by the developers. Additionally, the update enhances stuck transaction identification, which helps minimize delays.
The most well-known Dogecoin influencer, Elon Musk, also disclosed that his Tesla company has not sold any of its Dogecoin holdings while selling 75% of its BTC holdings. Many DOGE owners breathe a sigh of relief at this.
At the time of publication, Dogecoin had increased by 3.6 percent in the previous day’s trade to $0.070636.
