Staking is mainly used in blockchains that adopt a consensus mechanism called Proof of Stake (PoS) or its variants (e.g. Delegated Proof of Stake - DPoS, Leased Proof of Stake - LPoS, etc.). Unlike Proof of Work (PoW), used for example by Bitcoin, in which miners solve complex computational problems to validate transactions and obtain new coins, in PoS users "freeze" (stake) an amount of cryptocurrency in order to validate transactions and create new blocks. Benefits of staking Periodic rewards: Those who stake earn interest or new tokens based on the amount of assets they have staked. Energy Sustainability: Unlike Proof of Work mining, staking is more energy efficient. Participation in governance: Some blockchain projects allow staking participants to have a role in governance decisions, such as voting for network changes or upgrades. Types of staking Direct staking: The user directly blocks his funds in a dedicated wallet and contributes to the maintenance of the network. Delegated Staking (DPoS): You entrust your funds to a validator or third party who participates in staking on your behalf, usually sharing the rewards. Liquid staking: On some platforms, the user can stake while still maintaining liquidity, thanks to derivative tokens that represent the blocked capital. Risks of staking Funds Lock: During the staking period, funds are locked and cannot be sold or transferred, limiting the user's liquidity. Volatility: Even if you earn token rewards, their value may fluctuate significantly. Penalty (slashing): In some blockchains, if a validator (or delegate) behaves incorrectly, part or all of the staking may be confiscated as a penalty. Rewards Staking rewards depend on several factors: Reward percentage: Varies based on the blockchain and can be fixed or variable. Token inflation: New coins issued as rewards can affect the value of those already in circulation. Staking duration: Some protocols offer greater incentives if funds are locked for longer periods.