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Staking (Crypto)
11 months ago
16
Finance & Crypto
Education
thetallystick
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Staking involves holding and locking up a certain amount of your tokens to participate in the network's operations, like transaction validation, on proof-of-stake blockchains.
Participants, known as stakers, lock up their crypto assets to help secure the network, validate transactions, or participate in consensus mechanisms.
In return, stakers are often rewarded with additional cryptocurrency, similar to earning interest. This process not only incentivizes participation but also helps in maintaining the integrity and security of the blockchain.
Essentially, staking is akin to earning dividends by holding and committing your crypto assets to the network's health.
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