Staking

In a Proof-of-Stake network, staking means locking up some of your coins as a deposit that lets you help validate transactions. Behave correctly and the network pays a reward, similar in spirit to earning interest — but the deposit itself isn't guaranteed: its value can fall, and in some networks a portion can be forfeited for misbehavior.

Proof-of-Stake networks replace energy-intensive mining with economic collateral: validators lock up (stake) coins, and the network selects among them to propose and confirm new blocks, weighted roughly by stake size. Correct participation earns rewards, paid in the network's own token; incorrect or malicious behavior can trigger 'slashing,' where a portion of the staked amount is forfeited. Staking can be done by running a validator node directly, delegating stake to a validator, or using a staking service or exchange — each with different custody and fee trade-offs. Funds are often subject to a lock-up or 'unbonding' period during which they cannot be withdrawn, and rewards are paid in an asset whose price can fall faster than the yield accrues.