In a Proof-of-Stake network, just as in a Proof-of-Work network, the blockchain is maintained over a diverse and geographically distributed network of different computers or servers called “nodes”. The networks allow for a diverse set of entities to participate in their operation and earn rewards for doing so.
What does staking mean?
Validators run the infrastructure
Validators, like Staking Facilities, are special nodes responsible for the provision of infrastructure as well as proposing and validating new blocks and appending them to the blockchain. Hence, together with other validators, they ensure the blockchains' security by monitoring its accuracy, establishing validity, guaranteeing availability, and provisioning the infrastructure for it to run on.
Validators earn staking rewards & fees
For their work, validators are rewarded in the form of block rewards & transaction fees. In order to participate in securing the network and to be paid for this service, validators are required to lock up collateral “stake” which can be forfeited (i.e. “slashed”) programmatically if their actions break the programmatic rules that define the blockchain protocol which they secure.
Delegators contribute to the security
The right to validate and add blocks, hence, to secure the validity of the blockchain, is attached to every PoS token. Token holders who do not want to act as a validator, but still want to contribute to the blockchain’s security and earn rewards, can delegate the rights contained in their tokens to a validator of their choice. These token holders are called delegators and can be considered as a validators' customer.
Delegators earn a return on their assets
The amount of rewards a delegator can earn through the services of a validator is a function of the validators' total rewards and the ratio between the size of the holder’s own stake and the total stake of the validator. For their services, the validators charge a fee on the token holder’s rewards.
Earn rewards by securing the digital infrastructure of Web 3.0 through staking
We offer non-custodial, highly secure staking services for a variety of next-generation Proof-of-Stake blockchains so that you can participate in the next evolution of the internet and earn rewards on your digital assets.