Staked Value Collateral

Definition ∞ Staked value collateral refers to the digital assets locked within a proof-of-stake blockchain network by validators to secure the network and earn rewards. These assets serve as a financial commitment by validators, ensuring their honest participation in transaction validation and block creation. If a validator acts maliciously or negligently, a portion of their staked collateral may be slashed as a penalty, thereby providing economic security for the network. The total staked value represents a significant barrier to attack and an indicator of network health.
Context ∞ News reports frequently discuss staked value collateral in the context of proof-of-stake blockchain upgrades, network security analyses, and discussions about validator decentralization. A high amount of staked collateral generally indicates a more secure and robust network. Monitoring changes in this metric provides insight into network participation and overall economic security.