Staking participation rate represents the percentage of a cryptocurrency’s total eligible supply that is actively locked up or delegated for staking within a proof-of-stake blockchain network. This metric serves as a key indicator of network security and the level of community engagement. A higher rate generally implies greater decentralization and resilience against attacks.
Context
A robust staking participation rate is often cited in crypto news as a positive signal for the health and security of a proof-of-stake blockchain. It reflects the confidence of token holders in the network’s future and their willingness to contribute to its validation process. Fluctuations in this rate can indicate shifts in market sentiment or protocol adjustments.
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