🔒 How Staking Works: Lock, Validate, Earn
Learn how locking up your crypto secures the network and generates passive income
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0 / 5 completed⚙️ How Staking Works
Staking involves locking up cryptocurrency to participate in network validation. Let's explore the mechanics, rewards, and risks.
🔒 The Staking Process
Lock up minimum required amount (32 ETH for Ethereum). Funds are held in a smart contract and cannot be withdrawn immediately.
Set up validator software that stays online 24/7. Your node participates in proposing and attesting to blocks.
When selected, propose new blocks or attest to others' proposals. Perform duties honestly and on time.
Receive staking rewards for good behavior (typically 4-10% annual return). Rewards compound over time.
💰 Staking Rewards Calculator
Adjust the parameters to see potential staking earnings:
✅Rewards Earned For:
- •Proposing valid blocks on time
- •Attesting to correct blocks
- •Being online and responsive (uptime)
- •Participating in sync committees
⚠️Penalties (Slashing) For:
- •Double signing (proposing 2 blocks)
- •Surrounding votes (contradictory attestations)
- •Extended downtime (offline for days)
- •Malicious behavior or attacks
🔐 Security Through Economics
To control 51% of network, attacker needs 51% of all staked ETH.
If caught attacking, validators lose their entire stake permanently.
Cost of attack is massive, and success burns attacker's wealth. Economically irrational to attack.