Staking

A process in Proof-of-Stake networks where participants provide collateral in the form of cryptocurrency to become network validators. While validator selection is random, the probability of being selected increases with the amount staked since validators have more to lose if they behave maliciously. Successful validators and attesters receive newly minted network tokens as rewards, while dishonest or negligent behavior results in automatic reduction of staked tokens (“slashing”) once detected by the network.