Staking
Locking or delegating tokens to support a proof-of-stake network or protocol in exchange for potential rewards.
Staking is the process of locking, bonding, or delegating tokens to participate in a proof-of-stake network or protocol. Validators stake to propose and attest to blocks, while delegators may assign stake to validators without running infrastructure themselves.
Risks include slashing for downtime or misbehavior, lockup periods, validator fees, smart contract risk in pooled or liquid staking products, and changing reward rates. Staking rewards are not guaranteed profit because token prices and protocol rules can change.
Related terms
4 linkedExplore connected entries beyond the alphabetical index.
Proof of Stake
→A consensus method where validators use staked cryptocurrency to create blocks and secure the network.
Validator
→A consensus participant that proposes, verifies, or attests to blocks, often after bonding stake in a proof-of-stake network.
Weak Subjectivity
→A proof-of-stake property where new or long-offline nodes need a recent trusted checkpoint to sync safely.
Staking Rewards
→Token payouts earned by validators or delegators for participating in proof-of-stake security or protocol incentives.
All terms and definitions may update as the Cryptionary improves.
