What is Staking?

Question

What is Staking?

Accepted Answer

Staking is the process of locking up cryptocurrency holdings to actively participate in the validation of transactions on a Proof-of-Stake (PoS) blockchain network, which in turn helps secure the network and allows the staker to earn rewards, typically in the form of newly minted tokens or a share of transaction fees.

Staking

What is Staking?

What is the fundamental mechanism of crypto staking, and what are the typical reward structures for participants?

How do different staking methods, such as solo, pooled, and liquid staking, compare in terms of accessibility, risk, and return?

What are the primary risks associated with staking, including the threat of slashing and smart contract vulnerabilities?

What is the broader economic and institutional impact of staking on the DeFi and crypto infrastructure landscape?

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