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Staking Strategy

Definition

A staking strategy outlines the methods and parameters by which users lock up their digital assets to support a blockchain network’s operations. This process, known as staking, typically involves delegating assets to validators in exchange for network rewards. Effective staking strategies aim to maximize yield while managing associated risks, such as slashing penalties or validator performance issues. It is a key mechanism for securing proof-of-stake blockchains and generating passive income for holders.