Staking Activity

Definition ∞ Staking activity is the process by which holders of certain cryptocurrencies lock up their digital assets to support the operations of a blockchain network. In return for contributing to network security and validation, stakers typically receive rewards in the form of additional cryptocurrency. This mechanism is central to the functioning of proof-of-stake consensus protocols. It represents a method of earning passive income while participating in network governance.
Context ∞ The context for staking activity frequently appears in news related to the yields offered by different proof-of-stake networks, the security implications of large stakers, and the regulatory treatment of staking rewards. Discussions often focus on the total value locked in staking protocols and the potential impact of staking on tokenomics and network decentralization. Key considerations include the risks associated with unstaking periods and validator performance.