Ethereum Staking

Definition ∞ Ethereum staking involves locking up Ether (ETH) cryptocurrency to support the operation and security of the Ethereum network. Participants who stake ETH contribute to the network’s consensus mechanism and are rewarded with additional ETH for their contribution. This process is central to Ethereum’s transition to a Proof-of-Stake (PoS) consensus model.
Context ∞ The ongoing discussion around Ethereum staking often involves analyses of validator economics, the potential for staking pools to centralize network control, and the implications of staked ETH becoming liquid through derivatives. Market participants are closely watching the impact of large-scale staking on ETH’s supply dynamics and price stability. A critical future development to monitor is the evolution of liquid staking solutions and their regulatory treatment.