Staking

Staking is a process by which individuals hold and lock up a certain amount of a cryptocurrency in a specialized wallet or smart contract in order to participate in the blockchain's consensus process and earn rewards in the form of additional cryptocurrency.

Staking is typically used to secure and validate transactions on a proof-of-stake (PoS) blockchain, which is an alternative to the proof-of-work (PoW) consensus mechanism used by cryptocurrencies like Bitcoin.

By staking their tokens, individuals contribute to the security and stability of the blockchain network and earn passive income in the form of staking rewards, which are distributed in proportion to the amount of tokens staked.