GlossaryBeginner
Staking
Committing crypto to help secure a proof-of-stake network, often in exchange for rewards.
Staking means committing, or locking up, cryptocurrency to participate in a proof-of-stake network's consensus process, helping validate transactions and secure the network.
In exchange for staking, participants often receive rewards, though staked funds may also be subject to lock-up periods, and validators who misbehave can sometimes be penalized through slashing. See Kaavon's "Validator," "Slashing," and "Liquid Staking" glossary definitions for the participant role, the penalty mechanism, and an alternative design that avoids the typical lock-up.
Examples
- Ethereum validators stake ETH to participate in the network's proof-of-stake consensus.
- Some exchanges and platforms offer simplified staking services on behalf of users.