Definition ∞ Staking Influence refers to the power or control exerted by participants who have locked their cryptocurrency assets within a proof-of-stake network to secure it and validate transactions. The amount of staked assets directly correlates with the probability of being selected to create new blocks and earn rewards. This influence extends to governance decisions, where larger stakes often grant greater voting power in protocol upgrades or parameter changes. It is a fundamental aspect of proof-of-stake consensus mechanisms.
Context ∞ Staking influence is a central topic in discussions about the decentralization and governance of proof-of-stake blockchains. Concerns sometimes arise regarding potential centralization if a few large entities accumulate significant staking power. News often reports on shifts in staking distribution and their implications for network security and democratic governance within digital asset ecosystems.
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