VanEckhasintroducedstakingforitsSolanaExchangeTradedNote(ETN)inEurope,whichcurrentlyhasassetsundermanagement(AUM)totaling$73million.
TheSolanaETN,whichtradesunderthetickerVSOL,willnowenableinvestorstobenefitfromstakingrewardsthatwillbeaccruedandreinvesteddaily.
ANon-CustodialStakingModel
TheannouncementwasmadebyVanEck’sHeadofdigitalassetresearch,MathewSiegel,inanOctober21postonX.Accordingtohim,therewardswillbeincludedintheEnd-of-DayNetAssetValue(NAV)oftheETN,ensuringthatinvestorscanmaintaindailyliquidity.
AnaccompanyingdocumentrevealsthatthestakingprocessfortheSolanaETNisentirelynon-custodial.ItmeansthattheowneroftheassetsretainscompletecontroloverthestakedSOLtokensthroughouttheprocess.
Thisstrategyismeanttomitigateriskbynotexposingtheassetstolendingpracticescommonlyassociatedwithtraditionalstakingmethods.
Accordingtothecompany’smarketingcommunication,investorsarenotrequiredtotakeanyactioninthestakingprocess,withanyrewardstheyearnautomaticallyincludedinthetokenequityoftheETN.
Therewardswillalsobedistributedequallyamonginvestors,regardlessofwhethertheypurchasedtheETNrecentlyorhavehelditforalongerperiod.However,VanEckwilldeducta25%stakingfeefromtheaccruedrewardsbeforedistribution.
HowStakingWorksfortheSolanaETN
ThestakingprocessbeginswiththedelegationofSolanatokensheldbytheETN.Maintainedbyanexternalstakingprovider,thevalidatorearnsinflationaryrewards,MaximumExtractableValue(MEV)rewards,andblockrewardsonanepoch-by-epochbasis.However,controlofthedelegatedSOLremainswiththecustodianwhiletheassetsareneverremovedfromcoldstorage.
Oncetherewardsareaccrued,theyarereinvesteddailyintotheETNandreflectedinitsoverallperformance.Dependingonthemarketandnetworkconditions,VanEcksaysitmayadjustthescaleofthestakingactivitytoensureitremainsfullyliquidandredeemableatanytime.
Meanwhile,theassetmanagerremainscommittedtolaunchingaSolanaexchange-tradedfund(ETF)intheU.S.despitetheregulatorylandscape.Siegelpreviouslyassertedthatthecompanywillworkwithitsexchangepartnerstoadvocateforitspositionontheofferingtotherelevantregulators.
cryptopotato.com