Definition ∞ Staking participation refers to the act of locking up cryptocurrency assets in a blockchain network to support its operations and security. Participants, known as stakers, validate transactions and create new blocks in exchange for rewards. This mechanism is central to Proof of Stake consensus systems. The level of participation directly influences the network’s decentralization and its resistance to attacks.
Context ∞ News often reports on changes in staking participation rates, as these metrics provide insight into network health, investor sentiment, and potential yields. Higher staking participation generally indicates greater network security and decentralization. Developments in staking derivatives or liquid staking protocols are frequently covered, as they alter how users can participate and manage their staked assets.
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