Notitia
Lock tokens to secure and earn.
In Proof of Stake, holders ‘stake’ tokens to become validators or delegate to one. In return for securing the network, they earn rewards (an annual yield).
Risks: ‘slashing’ (a penalty if the validator misbehaves), lock-up periods, and token volatility that can exceed the yield.
You lock 32 ETH to validate on Ethereum. What does staking really yield once new ETH issuance is accounted for?
The quoted yield is not the gain: part of it offsets dilution, and the ETH price can wipe out far more. A pro thinks in real yield and adds slashing and liquidity risk.
Test your understanding with a quick interactive quiz.