What is staking & how does it work?

Staking is the process by which a cryptocurrency or token holder can earn rewards by simply holding their tokens in a wallet. PoS enables users to participate in securing the network without having to dedicate computer power or specialized hardware. PoS is a more energy-efficient alternative to proof-of-work (PoW).

How do staking rewards work?

In exchange for locking up your assets and participating in the network validation, validators receive rewards in that cryptocurrency known as staking rewards. Many leading crypto exchanges, like Binance.US, Coinbase and Kraken, offer staking rewards.

What is liquid staking?

With liquid staking, users stake their tokens and contribute to the security of PoS blockchains. Receipt tokens evidence ownership of the associated staked tokens and can be used in decentralized finance (DeFi). For more information, read about our partnership with Alluvial – the first enterprise-grade liquid staking protocol.

What is a staking pool?

A staking pool is a group of cryptocurrency holders who pool their coins to increase their chances of being selected as validators. By combining staking power, users can increase their chances of earning staking rewards, distributed proportionally to each pool member based on their contribution.