Trust, transparency, reliability – the staking industry has never been more in need to demonstrate these qualities. The Verified Staking Provider (VSP) Initiative by EBA member Staking Rewards helps investors to make confident decisions by verifying that providers meet requirements regarding risk management, longevity, and security measures. In a strategic partnership the EBA and its member Staking Rewards will help to foster and strengthen the staking ecosystem within the European Union.
The Verified Staking Provider initiative
The process of selecting a staking provider presents a unique set of challenges for delegators. For one, it can be challenging to predict which providers will exhibit a high level of trustworthiness and reliability in the future. Secondly, it can it be difficult to determine whether a given provider adheres to industry best practices and standards.
Without a layer of trust, delegators are left to navigate a complex and opaque validator set. The Verified Staking Provider Program is an initiative to add that layer by verifying that staking providers meet a set of criteria, including but not limited to, risk management, longevity, and security measures. It benefits delegators and providers as well as protocols & foundations.
The verification process considers three main areas: security setup, i.e. factors like key management, insurance, alerting; reliability, i.e. uptime, slashing events and other performance criteria; business operations, i.e. legitimacy of a provider’s business, delegator protection, sustainability of their services.
Besides providing trust and transparency, the programme also serves as a catalyst for the standardization of industry practices, promoting greater consistency and fairness across the staking ecosystem.
Staking Rewards and EBA sign strategic partnership
The EBA and Staking Rewards entered into a strategic partnership to bring the Staking Rewards Verified Staking Provider (VSP) initiative to all EBA members. The partnership will be mutually beneficial and will help to foster and strengthen the staking ecosystem within the European Union. The agreement will include discounts for EBA members as well as joint communication activities.
“The staking industry is the backbone of the crypto-based economy. Transparency, dependability, and trustworthiness are crucial to its success, especially in the current climate of heightened scrutiny. The Staking Rewards VSP initiative is an ideal program at the ideal time”, says Dr. Michael Gebert, Chairman European Blockchain Association.“ This type of initiative from EBA members demonstrates that, despite being a decentralized organization, we all pursue one goal: collaborating towards a secure, robust, and future-proof ecosystem. We recommend that all staking providers become certified and demonstrate to the market that they are a dependable and trustworthy partner.”
“The Verified Staking Provider Program represents a significant step forward in fostering trust and transparency within the staking industry. In an unregulated and rapidly evolving market, the program serves as a vital mechanism for ensuring the integrity and reliability of staking providers. Overall, the Verified Provider Program represents a critical component in the ongoing development and maturation of the staking industry”, Mirko Schmiedl of Staking Rewards is convinced.
In-depth information on the VSP can be found here or in our interview with VSP Product Owner Christoph Matthias.