Glossary Term
Proof of Stake (PoS)
Proof of Stake (PoS) is a consensus mechanism used by blockchains like Solana, where validators are selected to confirm transactions and produce new blocks based on the amount of tokens they stake, promoting network security, energy efficiency, and decentralization.
Beginner
Technology
Crypto Terminology
Proof of Stake (PoS): what is it?
Examples
- 1
A user delegates SOL to a validator, sharing in the earned rewards.
- 2
Running a Solana validator node with a large amount of staked SOL, producing blocks and securing the chain.
- 3
Participating in liquid staking protocols (mSOL, stSOL) to combine PoS yields with DeFi flexibility.
Common Use Cases
Securing Solana and similar networks by staking tokens for consensus participation.
Earning passive income from staking rewards.
Community-driven governance (in some PoS systems).
Pro Tips
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Staked tokens remain locked for the duration of staking or unstaking periods—plan liquidity needs accordingly.