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Features
Trading
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New to Crypto?
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Staking
Staking is a scheme where you lock your assets for a certain period of time. Someone who stakes is called a stakers. Then, stakers will get rewards in the form of locked tokens. Each crypto asset with a staking feature gives a different percentage of rewards. In addition, only blockchain with the consensus mechanism of the Proof of Stake (POS) has staking features.
In a blockchain, staking is a system that secures networks. This system is an alternative to Proof of Work (PoW) mining. Every validator needs to have a certain amount of tokens staked o be able to process transactions and upload new blocks on the blockchain. For example, all Ethereum validators require 32 ETH in order to participate in processing transactions.
Several examples of Proof of Stake blockchains are Ethereum, Solana, Polygon, and Binance.
Related Vocabulary
Annual Percentage Rate (APR)
APR is an annual interest rate offered to lenders who lend their tokens or crypto assets for borrowers to access at i...
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