Staking Explained

What you’ll learn

• •Staking locks up tokens as collateral to help secure a Proof of Stake network, with dishonest behaviour risking 'slashing'.
• •Staking rewards are funded by newly issued tokens and/or transaction fees, in compensation for securing the network.
• •Running your own validator typically requires a large minimum stake and ongoing technical responsibility.
• •Staking pools and exchange staking lower the entry barrier but add a layer of trust in the operator.
• •'Liquid staking' gives a tradeable receipt token for your staked position, unlocking flexibility at the cost of extra smart contract risk.
• •Self-run, pooled, and liquid staking sit on a spectrum trading self-reliance against convenience.