Luno Expands Crypto Earning Potential in Nigeria with Staking Feature

Luno has become the first locally operational cryptocurrency platform in Nigeria to introduce a staking feature, unlocking new avenues for passive income.

This innovative service allows Nigerian users to earn up to 18% annually on select proof-of-stake (PoS) assets directly within the Luno app.

With Nigeria’s crypto market booming, valued at $59 billion in on-chain transactions between July 2023 and June 2024, this launch is expected to reshape how Nigerians engage with digital assets.

What is Crypto Staking and Why Does It Matter?

Understanding Staking

Crypto staking involves locking up specific cryptocurrencies in a wallet to support blockchain network operations, such as validating transactions.

In return, users earn rewards, typically in additional tokens, similar to earning interest in a traditional savings account but with potentially higher returns.

Luno’s staking service supports four leading PoS assets: Cosmos (ATOM), Solana (SOL), Polkadot (DOT), and NEAR Protocol (NEAR), offering up to 18% annual returns.

Why Staking Matters in Nigeria

Nigeria’s crypto market is one of the largest globally, with over 21 million users. However, many have relied on offshore platforms for staking, facing risks like regulatory uncertainty, hidden fees, or rigid lock-up periods.

Luno’s locally compliant solution addresses these challenges, offering a secure, transparent, and accessible way to earn passive income.

This aligns with the growing demand for sustainable crypto products in Nigeria’s maturing digital asset ecosystem.

Luno’s Staking Feature: Key Highlights

Luno’s staking service stands out for its user-centric design and compliance-first approach. Here’s what makes it unique:

High Returns: Earn up to 18% annually on ATOM, SOL, DOT, and NEAR, with rewards paid out regularly. Cosmos offers the highest potential yield, though actual returns vary based on network conditions.
No Minimum Investment: Unlike many platforms, Luno requires no minimum amount to start staking, making it accessible for beginners and small-scale investors.
Flexible Access: No fixed lock-up periods or hidden fees. Users can unstake assets at any time, retaining full control over their funds.
Regulatory Compliance: Luno operates under strict standards, with regular audits and 1:1 asset storage, ensuring user funds are secure in Nigeria’s scam-prone market.
Promotional Offer: For the first three months, Luno waives platform fees to boost user rewards, adding extra value for early adopters.

Did You Know? Luno’s staking feature has already seen success in South Africa and Malaysia, with over 150,000 users staking more than R1.5 billion (~$83M) in assets. Nigeria is next in line to tap into this growing trend.

How to Get Started with Luno Staking

Getting started is simple and user-friendly. Follow these steps to begin earning rewards:

Download or Update the Luno App: Ensure you have the latest version of the Luno app, available on iOS and Android.
Verify Your Account: Complete the quick verification process to comply with Nigeria’s regulatory standards.
Deposit or Purchase Crypto: Buy or transfer ATOM, SOL, DOT, or NEAR to your Luno wallet.
Navigate to “Earn”: In the app, go to the “Earn” section and select “Start Staking.”
Start Earning: Rewards accrue immediately, and you can unstake anytime without penalties.

Pro Tip: Start with small amounts to test the waters, especially if you’re new to staking. Monitor your rewards in the app’s dashboard for full transparency.

Why Luno’s Staking Feature Stands Out

Accessibility for All

Luno’s no-minimum, no-lock-up model democratises staking, allowing Nigerians of all financial backgrounds to participate.

Whether you’re investing a small sum or diversifying a larger portfolio, Luno makes staking inclusive.

Safety and Trust

In a market filled with scams, Luno’s compliance with Nigeria’s Investment and Securities Act 2025 and its partnership with Fireblocks for secure asset management provide peace of mind. Regular audits and transparent reward structures further build trust.

Diversification Opportunities

By supporting altcoins like Polkadot and NEAR, Luno enables users to diversify beyond Bitcoin and Ethereum, which dominate Nigeria’s crypto trading. This exposure to innovative blockchain projects could enhance long-term returns.

Risks to Consider Before Staking

While staking offers attractive rewards, it’s not without risks. Here’s what to keep in mind:

Price Volatility: Crypto prices can fluctuate significantly, potentially offsetting staking rewards. Only stake what you can afford to lose.
Network Risks: Issues like blockchain downtime or slashing (penalties for validator errors) could affect rewards, though Luno mitigates these through trusted partners.
Regulatory Changes: Nigeria’s crypto regulations are evolving. Stay informed about updates from the Nigerian Securities and Exchange Commission (SEC) to ensure compliance.

Quick Tip: Diversify your staking across multiple assets (e.g., ATOM and SOL) to spread risk and balance potential returns.

The Bigger Picture: Nigeria’s Crypto Future

Luno’s staking launch comes at a key moment for Nigeria’s crypto ecosystem. With the SEC granting provisional licenses to local platforms like Busha and Quidax, and the Investment and Securities Act 2025 classifying cryptocurrencies as securities, regulatory clarity is encouraging investor confidence.

Staking could attract institutional investors, further integrating crypto into Nigeria’s financial system.

FAQs: Your Questions Answered

Q: Is Luno’s staking feature safe?
A: Luno prioritises security with 1:1 asset storage, regular audits, and compliance with Nigerian regulations. However, crypto carries inherent risks, so research thoroughly.

Q: Can I stake any amount?
A: Yes, Luno has no minimum staking requirement, making it accessible for all users.

Q: How often are rewards paid?
A: Rewards are paid out regularly, though exact intervals depend on the blockchain network. Check the Luno app for details.

Q: What happens if I unstake my assets?
A: You can unstake anytime without penalties, and your assets remain fully accessible.

Ronnie Paul is a seasoned writer and analyst with a prolific portfolio of over 1,000 published articles, specialising in fintech, cryptocurrency, and digital finance at Africa Digest News.

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