Staking Protocol

Definition ∞ A staking protocol is a set of rules and smart contracts that govern the process of locking up digital assets to support the operation of a blockchain network. Participants who stake their assets typically receive rewards in return for contributing to network security and transaction validation, particularly on proof-of-stake (PoS) consensus mechanisms. These protocols facilitate network participation and security.
Context ∞ The development and governance of staking protocols are critical for the functioning of many prominent blockchain networks, influencing validator incentives and network decentralization. News often reports on changes to staking parameters, the introduction of new staking services, or regulatory considerations impacting staking yields. The economic models underpinning these protocols are subjects of ongoing analysis.