◈ crypto
Staking
Locking tokens to earn rewards and secure networks
What is Staking?
Locking crypto tokens to participate in a Proof-of-Stake network. Stakers earn rewards for validating transactions. For projects, staking creates a committed holder base, people with locked tokens have skin in the game and pay attention to governance.
How it works
Key takeaways
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Earn passive yield by locking tokens
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Secures the network's consensus mechanism
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Slashing risk if validator misbehaves
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Real-world example
You lock 100 DOT with a validator. They use your stake to produce blocks. You earn ~15% APY in DOT, paid from network inflation.
