Definition ∞ Staking Contract Lockup is the process of committing digital assets to a smart contract for a specified duration to support the operations of a proof-of-stake blockchain network. Participants voluntarily lock their assets to help validate transactions and secure the network. In return, they typically receive rewards.
Context ∞ Staking contract lockups are a regular feature in cryptocurrency news, particularly concerning the economics and security of proof-of-stake blockchains. These lockups reduce the liquid supply of an asset, which can influence its market dynamics. The decision to lock assets often reflects a participant’s long-term conviction in the network’s viability and potential for yield.
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