Beginner
Staking
Also: stake, staked, staking rewards
Locking up coins to help secure a proof-of-stake network in exchange for rewards.
Stakers lock coins so the network can hold them as collateral. In return they earn rewards, but they may face lock-up periods, exit queues and the risk of slashingSlashing A penalty that destroys part of a validator's stake for breaking the network's rules.. Staking through an exchange or a liquid stakingLiquid staking Staking through a service that gives you a tradable token representing your staked coins. service adds that provider’s risk on top.
Related terms
- Proof of stakeA consensus method where validators lock up coins as collateral for the right to add blocks.
- ValidatorA participant in a proof-of-stake network who stakes coins and helps propose and confirm blocks.
- Staking yieldThe annual return stakers earn, usually shown as a percentage of the amount staked.
- Liquid stakingStaking through a service that gives you a tradable token representing your staked coins.