Practical Law Glossary Item w-038-6045 (Approx. 3 pages)
Glossary
Staking
A method by which the holder of a crypto asset can earn rewards for investing that crypto asset for a fixed period of time, thereby participating in a blockchains consensus mechanism, referred to as proof of stake, which us used to validate transactions on certain blockchains. The holder of the staked crypto asset receives rewards in the form of that crypto asset – the native token of that blockchain – once the block on the chain is validated.