Definition ∞ Staking pools are collective arrangements where multiple cryptocurrency holders combine their digital assets to increase their chances of validating transactions and earning staking rewards on a Proof-of-Stake (PoS) blockchain. Participants contribute their tokens to a pool operator, who then runs the validator node on their behalf. This mechanism allows individuals with smaller holdings to participate in staking and receive a share of the rewards. It democratizes access to staking benefits.
Context ∞ Staking pools are a prominent feature in Proof-of-Stake ecosystems, facilitating participation for a wider range of token holders. Discussions often center on the potential for large staking pools to contribute to network centralization if a few operators control a significant portion of the total staked assets. Future developments will likely involve innovations in liquid staking solutions and decentralized pool architectures to mitigate centralization risks and promote a more equitable distribution of staking power within digital asset networks.
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