ETH Staking

Definition ∞ ETH staking refers to the act of locking up Ether (ETH) cryptocurrency to support the operational security and validation of the Ethereum blockchain under its Proof-of-Stake consensus mechanism. Participants who stake ETH become validators, verifying transactions and proposing new blocks. In return for their participation and securing the network, stakers receive rewards in newly minted ETH and transaction fees. This process is essential for the network’s integrity and efficiency.
Context ∞ The discussion around ETH staking often centers on its decentralization, liquidity, and regulatory implications. A key debate involves the concentration of staked ETH among large entities and its potential impact on network governance. A critical future development to watch for includes further enhancements to staking accessibility and the continued evolution of liquid staking derivatives, alongside ongoing regulatory clarification regarding staking services.