VanEck has introduced staking capabilities for its Solana-based ETN product, VSOL. This new initiative allows European investors to earn passive income through staking rewards.

Staking Rewards Distribution

VanEck announced that 75% of the staking rewards will be distributed to investors, while the company will retain 25% as a fee. Regardless of how long investors hold their VSOL, they will receive staking rewards at the same rate.

Technical Details of the Staking Model

VanEck stated that VSOL staking transactions will be conducted entirely through a custodian, ensuring full control of the staked assets. This approach mitigates any lending risk. The staking rewards will automatically reflect in the daily net asset value (NAV) of the investments. VanEck collaborates with third-party staking providers to ensure security and transparency.

Conclusions and Significance of VanEck's Initiative

VanEck's staking initiative demonstrates its commitment to regulatory compliance while offering European investors the chance to earn passive income through Solana ETN. Investors can seamlessly receive their rewards without additional transactions during the staking process. VSOL began trading on the Deutsche Börse in Europe in 2021, with assets under management reaching $73.8 million as of October 2024.

VanEck's decision to introduce staking features for VSOL opens new opportunities for European investors, providing passive income without extra effort.