What is staking crypto?

Staking is the process of locking your crypto to secure the blockchain network. For your help, you earn rewards on the total amount locked. This percentage payout varies between blockchains.

What is a staking reward?

Staking rewards are incentives earned by individuals who participate in the process of staking cryptocurrencies. Staking is a mechanism used by certain blockchain networks to secure and validate transactions on the network. In a proof-of-stake (PoS) consensus algorithm, participants called validators are chosen to create new blocks and validate transactions based on the number of tokens they hold and “stake” in the network.

By staking their tokens, participants contribute to the network’s security and consensus protocol. In return for their contribution, they receive staking rewards, typically in the form of additional tokens. These rewards serve as an incentive to encourage individuals to hold and stake their tokens, thereby helping maintain the network’s integrity and security.
The amount of staking rewards earned can vary depending on various factors such as the network’s protocol, the number of tokens staked, and the duration of the stake.