Staking

How it is used

The verb is stake (stake your tokens, staked ETH), and the noun stake also means the amount locked. People talk about staking rewards, lock-up periods and unstaking. Exchanges offer staking products, which regulators may treat as financial services.

Example sentences

1. Staking rewards are paid every day, but unstaking takes up to a week on this network.

2. Before you start staking, read how long your tokens will be locked.

Common collocations

• staking rewards
• stake tokens
• unstake
• staking provider
• lock-up period

Related terms

• proof of stakeA consensus mechanism in which validators lock up coins as a stake to win the right to propose and confirm blocks. Those who break the rules can lose part of their stake. It uses far less energy than proof of work.
• validatorA participant in a proof-of-stake network who locks up coins and runs software to propose new blocks and check blocks proposed by others. Validators earn rewards and can be penalized for misbehaving.
• block rewardThe new coins a miner or validator receives for adding a block to the chain. On many networks, the transaction fees in that block are paid on top of the reward.
• yield farmingMoving crypto between DeFi protocols, for example by providing liquidity or lending, to earn rewards that are often paid in the protocols' own tokens.

More terms: Consensus, Mining & Staking

• consensus mechanism
• mining
• proof of work
• miner
• halving
• hash rate