Staking Protocols

Definition ∞ Sets of rules and smart contracts that govern the process of locking up cryptocurrency holdings to support a blockchain network’s operations. Participants who stake their assets often receive rewards in return for contributing to network security and consensus. These protocols are central to Proof-of-Stake (PoS) and other consensus mechanisms.
Context ∞ ‘Staking Protocols’ are a major focus in discussions about network security, yield generation, and the economic incentives within blockchain ecosystems. News frequently reports on changes to staking rewards, the total amount of assets staked, and the development of new staking services. The regulatory treatment of staking rewards and validator operations is also a persistent point of interest.