Finance glossary
Staking
Definition
Locking cryptocurrency in a network to help validate transactions and earn rewards.
Staking involves committing crypto assets to support a Proof-of-Stake blockchain operations. Validators are chosen to create new blocks based on the amount they have staked. In return, they earn staking rewards in new tokens. It is analogous to earning interest but comes with slashing risk if validators misbehave.
In a sentence
By staking his tokens to help secure the network, he earned a steady stream of rewards.
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