Internet
staking
What does staking mean?
Committing crypto to a proof-of-stake network (or protocol) to support its security or operations in exchange for reward yield. Staked assets are typically locked for a period.
"I'm staking my ETH for around 4% yield while I hold long-term."
Origin
Proof-of-stake blockchain mechanism, mainstream since Ethereum's move to PoS.
Frequently asked questions
What is staking in crypto?
Staking is committing your crypto to a proof-of-stake network or protocol to help secure it, earning reward yield in return.
How does staking earn rewards?
The network pays stakers newly issued tokens and fees for helping validate transactions and secure the chain, usually while the assets are locked for a period.
Is staking safe?
It carries risks such as lock-up periods, price volatility, and in some networks 'slashing' penalties if a validator misbehaves, so it isn't risk-free.
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