Staked Capital

Definition ∞ Staked capital refers to the amount of cryptocurrency locked up by participants in a Proof-of-Stake (PoS) blockchain network to support its operations and security. Users commit their assets to validate transactions and create new blocks, earning rewards in return. This mechanism incentivizes network participation and helps maintain the integrity of the distributed ledger. The quantity of staked capital directly impacts network security and decentralization.
Context ∞ The amount of staked capital on various Proof-of-Stake networks is a key metric for assessing their security, decentralization, and economic health. Discussions often compare the staking ratios and reward structures across different blockchains, evaluating their attractiveness to participants. Future trends indicate continued growth in staked capital as more networks transition to PoS and liquid staking solutions gain prominence, enhancing network security and participant rewards.