What is Staking?

Staking generally refers to the holding of your cryptocurrency funds in a wallet and hence supporting the functionality of a blockchain system. The cryptos are being locked in their wallets by the stakeholders. They are then rewarded by the network in return. Staking provides a way of making an income.

Staking is a process similar to having a savings account with your bank and earning interest on the deposits. Staking is a great addition to the cryptocurrency space which offers notable applications. Staking also brings the aspects of familiarity, engagement, and reward into the ecosystem. This makes the investment all the more worthwhile.

Staking on the Cardano Blockchain is like a lottery, each ₳ is a ticket. If your ticket wins a chance to produce a block you need to be online and ready.

So ₳ holders don’t have to be online you can delegate your ₳ to a pool which will be online for you at a fee, taken from the reward pot not from delegates.

If any ₳ in the pool wins the chance to make a block the pool it is delegated to makes that block. At the end of each epoch (5 days) the protocol sends the pool its fee from the reward pot before distributing the rest between all ₳ in the pool. Each ₳ will receive the same amount of rewards, so if a person has delegated more ₳ to a pool they would naturally receive higher rewards.

Your ₳ is NEVER locked up, it is always accessable to send away from the wallet.

Your ₳ always remains in your wallet

Any ₳ sent to the wallet is automatically staked, this includes rewards

Staking does not put your ₳ at risk, at worst you will not receive rewards if the pool does not produce any blocks, however you will never lose your ₳.

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