Skip to main content

Staking

consensus · defi

Locking or delegating tokens to support a proof-of-stake network or protocol in exchange for potential rewards.

1.definition

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.

2.risks

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

All terms and definitions may update as the Cryptionary improves.