Overview of Staking for residents of Japan – Kraken

What is On-chain staking?

On-chain staking utilizes blockchain Proof-of-Stake protocol to generate rewards through a process typically called “staking”.

With your Kraken account, you can stake your assets in just three clicks from your Kraken balances.

If you are a resident of Japan, you are currently able to Stake Ethereum (ETH) and Polkadot (DOT). At this time it’s not currently possible to unstake staked ETH. Further information can be found here

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Rewards

All rewards that have been earned via staking are counted and will appear in the total rewards column on the Earn page, please note however that this is not an amount of accrued rewards - as these have either been added to your Staked amount or in the case of ETH, deposited into your Spot Wallet already although not visible in your balances since ETH rewards cannot be traded or withdrawn. This is informational only. Rewards will only be added if the reward is greater than the smallest decimal precision.

Currency	Rewards per year (RPY)	Stake/Unstake minimum	Decimal Precision	Reward schedule
Ethereum (ETH)**	4%-7%	0.0000000001 ETH	10	Sunday Starting* at 01:30 UTC
Polkadot (DOT)	12%	0.00000001 DOT	8	Tuesday & Friday Starting* at 01:00 UTC

*Rates are estimates and are subject to change in compliance with Kraken’s terms of service.

Assets subject to a bonding period do not accrue rewards until that period had ended.

**ETH rewards are not added to your staking balance.

Assets eligible for On-chain staking

Currently we offer On-chain staking for Ethereum (ETH) and Polkadot (DOT). When you are logged in to your Kraken account navigate to the Earn section at the top of the page.

We have plans to introduce On-chain staking for other assets in the near future. — Follow our website for announcements.

Fees

There are currently no fees for staking or unstaking DOT.

For Ethereum staking, due to the specific network rollout and complexity, Kraken retains an administrative fee from earned staking rewards and provides clients variable reward rate.

Staking bonding and unbonding periods

Depending on the asset you are staking, the asset may be subject to a bonding period (period of time before a staked balance beings to earn rewards) or an unbonding period (period of time it takes for an unstaked balance to be returned to your Kraken spot balance).

Currency	Bonding Period	Unbonding period
Ethereum (ETH)	20 days	Not applicable*
Polkadot (DOT)	None	24 hours

*At this time it’s not currently possible to unstake staked ETH

Balance hold for trading

While your assets are staked via our On-chain staking service, they are not available for trading and cannot be pushed to your external (non-Kraken) account.

Crypto Asset Loan for Consumption Agreement

This service allows customers to lend Ethereum to Payward Trading Ltd (PTL), our overseas affiliate, under a loan for consumption agreement under our (Payward Asia / Kraken Japan) mediation. Therefore, once you have staked your Ethereum, you have lent your Ethereum to PTL, and PTL will continue to be obliged to return your Ethereum to you when it expires, even if we withdraw from Japan.

For Ethereum staking, in the event that Kraken ultimately decides that the upgrade will not take place, you will still receive a return of the same type, amount and equivalent crypto asset as the Ethereum you lent. In this case, the return would in principle be to the current Ethereum, not the so-called Ethereum 2.0, but could possibly be other currencies. On the other hand, please note that no usage fees will be paid in this case.

For more information, please refer to the Terms and Conditions and the Transaction Manual for this service.

Resources

For all other enquiries you may submit a support ticket here.

The decimal and thousands separators shown in this article may differ from the formats displayed on our trading platforms. Review our article on how we use points and commas for more information.

Resources

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