What is crypto staking?
DefinitionStaking is locking up the coins of a proof-of-stake blockchain, such as TON or Ethereum, to help validate transactions and secure the network, in return for rewards paid in the same coin. You can run a validator yourself or, more often, stake through a pool.
How staking works
Proof-of-stake networks pick validators to produce and check blocks based on the coins they put at stake. Validators who follow the rules earn rewards; validators who cheat or go offline can lose part of their stake, a penalty called slashing.
Running a validator takes a large stake and a server that is always online, so most people delegate to a validator or join a staking pool. The pool runs validators and shares the rewards, minus its fee.
Ways to stake
- Delegation: on some networks you delegate to a validator while the coins stay under your control
- Staking pool: you deposit coins into a pool contract that stakes on your behalf, often with a minimum amount and fixed unlock rounds
- Liquid staking: you receive a token that represents your staked coins, which you can hold or swap while the originals stay staked
- Exchange staking: a centralized exchange stakes your deposited coins; simple, but the exchange holds your keys
Risks and trade-offs
Staking rewards are variable and never guaranteed. Check where your coins actually go and how long it takes to get them back before you stake.
- Lock-up and unbonding periods: your coins may take days to become withdrawable
- Slashing or validator penalties, depending on the network and the pool
- Smart-contract risk in pools and liquid staking tokens
- Price risk: rewards are paid in the staked coin, so their value in your currency rises and falls with it
- Fake staking sites that promise high rewards and steal deposits
Staking TON in Waletifi
Where available in your country, you can stake TON from the Waletifi app. Your keys stay on your phone, the transaction is signed on your phone, and the network fee is shown before you confirm.
