Definition ∞ Staking ratio decline signifies a reduction in the proportion of a cryptocurrency’s total supply that is actively committed to a proof-of-stake network for validation. This decrease can result from withdrawals, decreased participation, or a growing circulating supply not being staked. It may impact network security.
Context ∞ A staking ratio decline can raise concerns about the decentralization and security budget of a proof-of-stake blockchain. A lower ratio might imply reduced network security or a shift in validator incentives, prompting discussions among protocol developers and the community regarding economic adjustments or protocol enhancements.
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