Blockchain
Staking
Locking up cryptocurrency as collateral to participate in network validation and earn rewards on Proof of Stake blockchains.
Last Updated
2026-03-19
Related Concepts
What is Staking?
Staking is the process of locking up cryptocurrency as collateral to participate in Proof of Stake consensus. Validators earn rewards for honest participation and lose stake via slashing if they misbehave.
How does Staking work?
- You lock up a minimum amount of cryptocurrency as your stake.
- The network registers you as a validator eligible to propose and attest to blocks.
- Validators are selected randomly, weighted by stake size.
- Honest validators earn rewards; misbehaving validators are slashed.
Why does Staking matter?
It is more energy-efficient than mining, more accessible than specialized hardware, and turns capital into the security mechanism for the entire network.
Key features of Staking
- Earn 3 to 10 percent APY depending on the network
- Slashing risk for downtime or malicious behavior
- Pooled staking lowers the minimum entry barrier
- More environmentally friendly than Proof of Work
Examples of Staking
Ethereum validators stake 32 ETH and earn roughly 3 percent APY. Lido enables ETH staking with no minimum through pooling.
Cardano and Polkadot offer 5 to 12 percent APY on their respective staking systems.