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How Does Proof-of-Stake (PoS) Consensus Enable Staking Rewards?

PoS consensus rewards users with new coins or fees for locking their crypto to validate transactions and secure the network.
Greeks.Live29.10.25

How Does Proof-of-Stake (PoS) Consensus Enable Staking Rewards?

PoS is a consensus mechanism where participants lock up their coins to validate transactions and secure the network. In exchange for this service, the protocol rewards them with newly minted coins or transaction fees.

This mechanism replaces the energy-intensive mining process of Proof-of-Work. The rewards incentivize network security and participation.

What Is the Role of a Validator in a Proof-of-Stake Network?
What Is ‘Staking’ and How Does It Differ from PoW Mining?
How Does Staking Relate to the Monetary Policy of a Cryptocurrency?
What Is the Relationship between Staking Rewards and Coin Inflation?

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