@bunkervinnys
Staking is the process of locking up a certain amount of cryptocurrency in a Proof-of-Stake (PoS) network to support its operations, such as validating transactions and securing the network. In PoS, validators are selected to create new blocks and confirm transactions based on the amount of cryptocurrency they have staked. In return for their participation, stakers earn rewards, typically in the form of additional tokens. The more tokens staked, the higher the chance of being chosen as a validator. Staking incentivizes long-term holding and network security, and it helps PoS networks operate more efficiently and with lower energy consumption compared to Proof-of-Work (PoW) networks like Bitcoin. However, stakers face risks, including slashing (loss of staked funds) for malicious behavior or downtime.
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