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Stake Rebalancing

Definition

Stake rebalancing refers to the process where validators or stakers in a Proof of Stake (PoS) blockchain adjust their staked cryptocurrency across different validators or pools to optimize returns, manage risk, or support network decentralization. This activity involves moving staked assets to more performant validators, diversifying across multiple entities, or responding to changes in network parameters. It is a dynamic process influenced by delegation strategies and protocol incentives. Regular rebalancing is essential for active participants.