Staking First, imagine you deposit your money in a bank to a | House Of Chimera

Staking

First, imagine you deposit your money in a bank to a saving account. The funds are lent to others, and the bank shares the interest with you. A similar principle is applied in staking, where you lock up your digital assets and receive rewards in return. You are rewarded because your assets stored in a wallet enable:

Blockchain operations
Governance
Security

By staking your cryptocurrency assets, you take an active role in validating transactions on a blockchain network rather than relying on a small group of miners. Whether a network has staking depends on its consensus method, such as Proof-of-Stake (PoS) or Proof-of-Work (PoW). With PoS, your assets are used to vote on transactions and validate blocks, with the network randomly selecting validators for each block. The more tokens you stake, the higher the chance of earning rewards, incentivising validators to maintain the network.