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What Is a ‘Staking Mechanism’ and How Does It Enhance Customer Commitment?

Staking involves users locking up their tokens for a specified period to support the network's operations, typically for validation or governance. In return, stakers receive rewards, often in the form of new tokens or transaction fees.

This mechanism enhances commitment by creating a financial incentive for long-term holding and active participation. It reduces the circulating supply, further aligning the user's financial interest with the platform's security and success.

How Does Proof-of-Stake (PoS) Consensus Enable Staking Rewards?
How Does the Issuance Rate of a Token Impact Its Long-Term Value?
How Does the Allowance Model Support Other DeFi Primitives like Yield Farming or Staking?
Define ‘Staking’ in the Context of Proof-of-Stake