VanEck has introduced automated staking for its Solana ETN in Europe, making it easier for investors to earn staking rewards. According to Matthew Sigel, VanEck’s Head of Digital Assets Research, this update reflects Solana’s growing decentralization and status as a key player in the blockchain space.
Automated Staking and Reward System
With the new feature, investors are automatically enrolled in the staking program when purchasing the ETN. Rewards are calculated daily, with a 25% staking fee applied. VanEck explained that
Solana’s Delegated-Proof-of-Stake (DPoS) system differs from Ethereum’s Proof-of-Stake (PoS), allowing validators to participate in consensus and confirm valid transactions on the blockchain.
Security Through Cold Storage
The ETN uses a non-custodial model where the SOL tokens held are delegated to a validator through a staking provider, while remaining under cold storage protection by the custodian. This method minimizes third-party risks while giving investors the benefits of staking. Sigel also addressed liquidity concerns, explaining VanEck’s dynamic risk model, which ensures efficient daily redemptions. Solana’s shorter staking epochs make managing liquidity easier compared to Ethereum.
Daily Accrual and Reinvestment
Staking rewards are accrued daily and reinvested, with the returns reflected in the ETN’s Net Asset Value (NAV). This system provides transparency and stable returns for investors. In addition to its European ETN, VanEck has applied to launch the first Solana ETF in the U.S., further integrating digital assets into its offerings. VanEck believes Solana could eventually capture up to 50% of Ethereum’s market cap by dominating DeFi and payment sectors. Currently, Solana (SOL) is trading at $166, showing a recent dip of 2.85%, but an overall weekly increase of 4.5%.
Disclaimer: This content does not constitute trading or investment recommendations. It’s essential to conduct your own research before purchasing any cryptocurrency or investing in any services.
