Staked Ether Tokens

Definition ∞ Staked Ether tokens are units of the Ethereum cryptocurrency (ETH) that have been committed to secure the network. These tokens are locked by validators in a smart contract to participate in the proof-of-stake consensus process, enabling them to propose and attest to new blocks. In return for their participation, stakers receive rewards in ETH, contributing to the network’s operational integrity. The act of staking helps maintain the decentralized security and liveness of the Ethereum blockchain.
Context ∞ News regularly references staked Ether tokens in reports concerning Ethereum’s network upgrades, validator activity, and the overall health of its proof-of-stake system. Debates often involve the yield generated by staking, the risks associated with locking assets, and the decentralization of validator power. The increasing volume of staked ETH is a significant indicator of confidence in the Ethereum ecosystem.