Definition ∞ Network staking is a process where participants lock up their digital assets to support the operations of a blockchain network. In return for their commitment, stakers typically receive rewards, often in the form of newly minted tokens or transaction fees. This mechanism is central to the security and functioning of proof-of-stake consensus models.
Context ∞ Current conversations regarding network staking often focus on the annual yields offered by various proof-of-stake networks, the risks associated with validator slashing, and the implications of staking on token distribution and price stability. Analysts are evaluating the economic incentives driving participation in staking pools and the potential for staking to influence network governance. The increasing institutional interest in staking services is also a notable development.
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