Staking

Staking is the process of participating in a proof-of-stake (PoS) blockchain network by locking up cryptocurrency tokens to support network operations, such as validating transactions and securing the blockchain. In return for staking their tokens, participants, known as stakers, earn rewards in the form of additional cryptocurrency. Staking provides an alternative to proof-of-work (PoW) mining, offering a more energy-efficient and scalable way to achieve consensus on the blockchain. By staking their tokens, participants contribute to the security and decentralization of the network while earning passive income.

Staking can be done individually or through staking pools, where multiple participants combine their resources to increase their chances of earning rewards. Staking pools are particularly beneficial for smaller investors who may not have enough tokens to meet the minimum requirements for staking on their own. By joining a pool, participants can earn a share of the rewards proportional to their contribution to the pool, making staking more accessible to a broader range of users. Staking also encourages long-term commitment to the network, as participants must maintain their stake to continue earning rewards.