Proof of Stake (PoS)

Consensus where validators stake tokens as honesty guarantee.

PoS: validators stake tokens (32 ETH ~$100k) and are randomly chosen to produce blocks. Cheating = slashing. 99.95% less energy. 3-5% APR rewards. Risk: validator centralization (Lido, Coinbase hold large %).

In plain words

A way of securing the network where validators, instead of mining, lock their own tokens as collateral (e.g. 32 ETH). The network randomly picks who validates the next block and pays them a reward. Cheating = lose the deposit (slashing). 99.95% less energy than mining + passive income for stakers.

Example

ETH PoS: 1.1M validators (×32 ETH = 35M ETH staked = ~30% supply). APR ~3.2%. Slashing: ~0.05% validators/year. SOL PoS: 1500 validators, APR 6-7%, frequent outages.

Also known as: PoS, proof of stake, staking

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