Definition ∞ The Ethereum staking mechanism is the process by which participants lock up their ETH to support the network’s security and operations under its proof-of-stake consensus model. Stakers act as validators, proposing and verifying new blocks in exchange for rewards. This system replaced the energy-intensive proof-of-work model, enhancing efficiency and decentralization. It forms the bedrock of Ethereum’s economic security and transaction finality.
Context ∞ News concerning the Ethereum staking mechanism often centers on participation rates, validator decentralization, and the economic incentives offered to stakers. Debates address the influence of liquid staking derivatives and the concentration of staking power among a few large entities. Future discussions will likely focus on further protocol optimizations to encourage broader participation and maintain a robust, distributed validator set.
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