Staking is the process of participating in the consensus mechanism of a blockchain network by locking up a certain amount of cryptocurrency or non-fungible tokens (NFTs) to support the network’s operations, such as validating transactions and securing the network. In return for their contribution, users who stake their assets are rewarded with additional tokens, often in the form of interest or dividends. Staking not only encourages user participation but also helps maintain network stability and security.
