What is Staking?
Last reviewed 2026-05-03
Used by: Jito Liquid Staking, Blockdaemon Staking
Entity coverage: 7 protocols, 0 tokens, 0 chains reference this concept.
Staking is locking tokens with a PoS network in exchange for issuance rewards plus a slashing risk. Ethereum requires 32 ETH to run a validator (or fractional via pools). Yields range 3-10% depending on chain, MEV, and total staked.
How it works
A holder locks tokens with the protocol, either by running a validator (on Ethereum, depositing 32 ETH into the deposit contract) or by delegating to one and sharing its rewards minus a commission. The stake is collateral: it is what the network can confiscate if the operator misbehaves.
The protocol then selects validators — typically weighted by stake — to propose new blocks and attest to blocks proposed by others. Correct, timely participation earns rewards drawn from new token issuance, transaction fees, and often MEV. Going offline forfeits rewards or incurs minor penalties, while provable faults such as signing two conflicting blocks trigger slashing, which destroys part of the stake and usually ejects the validator from the set.
Exiting is not instant: withdrawals pass through an unbonding or exit queue that can take hours to weeks depending on the chain. Liquid staking protocols wrap this entire flow, issuing a transferable receipt token that accrues the rewards while the underlying stake stays locked.
Why it matters
Staking is the economic engine of proof-of-stake security. Validators earn issuance + MEV; users earn yield without active management. Critical for ETH economic security.
Real-world examples
Native ETH staking (32 ETH validator), Lido stETH, Rocket Pool rETH, Coinbase cbETH, Solana SOL staking via Jito.
Related terms
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