Staking
Staking is the process of locking or delegating crypto to help secure a proof-of-stake blockchain and potentially earn rewards.
Staking is a way to participate in a proof-of-stake blockchain by locking up, or delegating, a cryptocurrency that the network uses to help validate transactions and create new blocks. Instead of miners using computing power, proof-of-stake networks rely on validators who have stake at risk. If they follow the rules, they may earn rewards; if they act dishonestly or make serious errors, part of the stake can be penalized, a process known as slashing.
Staking matters because it helps secure the network while giving token holders a role beyond simply holding or trading. Many users stake through a wallet, exchange, or staking pool rather than running validator hardware themselves. For example, someone holding a proof-of-stake coin might delegate it to a validator and receive a share of rewards, similar to how a cooperative participant can support shared infrastructure and receive compensation. Rewards are not guaranteed, and staked assets may be subject to lockup periods, fees, validator risk, and price volatility.
Other terms in Staking & Yield
APR
APR is the simple annual rate of return or cost, shown before compounding, often used to compare staking, lending, and borrowing yields.
APY
APY is the annualized percentage rate showing how much a crypto yield position could earn in one year, including compounding.
Delegation (Staking)
Delegation is assigning your tokens’ staking power to a validator so they can help secure a proof-of-stake network and share rewards with you.
Lockup APR
The annualized reward rate offered for staking, lending, or depositing crypto when funds must stay locked for a set period.