Staking

Locking up cryptocurrency to help secure a proof-of-stake network in exchange for rewards.

In depth

Replaces energy-intensive mining for PoS chains. Annual yields typically 3-8% (ETH, SOL, ADA). Risks: slashing (losing stake for misbehavior), illiquidity (lock-up periods), smart contract risk for liquid staking protocols (Lido, Rocket Pool).

Related terms

Mining (Crypto)

The process of validating blockchain transactions by solving computational puzzles, earning crypto rewards.

Slashing

Penalty mechanism in proof-of-stake networks that confiscates staked tokens for validator misbehavior.

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