The leading cryptocurrency exchange has officially launched Binance Pool — “a cryptocurrency mining platform dedicated to empowering miners and the global crypto mining industry.”
With this latest addition to the Binance ecosystem, the company would be offering both Proof of Work (PoW) and Proof of Stake (PoS) services for a variety of coins and tokens, starting with Bitcoin mining, with more to come, using a FPPS payment method but charging zero fees for the first month.
Right on the day of launch, Binance is ranked 11th and already people are concerned about this leading to lack of decentralization in the mining space.
However, Binance CEO, Changpeng Zhao aka “CZ” pointed out they are the smallest pool among the exchanges that have mining pools. Yet!.
Binance Pool has been launched at a time when the industry is preparing for the third halving in May.
The company noted in its official announcement how the last two halving events brought rapid change in the entire crypto industry. And now this halving would come with its own set of opportunities and challenges. Moreover, major changes in other cryptos are also on the horizon, with Ethereum’s impending shift to PoS consensus.
Being an exchange mining pool means miners could combine their resources, share their processing power, and split the reward in proportion directly in participants’ exchange accounts.
“With functions such as buying, trading, staking, saving, earning, borrowing, and now mining under one roof, we offer unparalleled convenience,” states Binance.
With Binance Pool, the company aims to bridge traditional mining and financial services and offer “lowest fees” in the market to enable miners to earn more.
The exchange says it is making the mining field more decentralized with the launch of yet another participant in the market and in turn making the blockchain network more secure when it comes to attacking the bitcoin network.
Apart from global tech expertise, Binance Pool boasts of better services for miners and comprehensive financial services such as lending services with low loan-to-value ratios.
In other news, the exchange also announced that it is establishing an official Margin Risk Fund. The fund will be used to pay the outstanding loans of liquidated margin accounts and 15% of all interest fees collected from margin borrowing will go to the fund.