Staking

Staking

Staking is the process by which a user of a blockchain network "stakes" or locks their cryptocurrency assets to a network as part of the consensus mechanism, ensuring the security and functionality of the blockchain. Locked assets are usually held in a node or crypto wallet, and to encourage staking, most projects reward holders of staked tokens with financial returns on an annual basis, which are typically paid out on a regular basis. Staking is a core feature of Proof-of-Stake (PoS) blockchain protocols, and each blockchain project that includes a staking feature has its own policies for staking requirements and withdrawal restrictions.

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Cryptopedia: Staking