Staking

Staking is the process of committing crypto assets to help operate and secure a proof-of-stake blockchain network. Participants lock tokens to support activities such as validating transactions and producing blocks, and the network’s protocol may grant new tokens or fees in return. Staking can be done directly by running a validator or indirectly through a service that pools funds.

A common misconception is that staking is a guaranteed, risk-free yield; returns vary, assets may be locked for a period, and validators can face penalties for downtime or misbehaviour. Mechanisms and terms differ across networks and providers.