Proof of Stake (PoS)
Proof of Stake is a consensus mechanism where validators are chosen to create blocks based on how many tokens they stake (lock up) as collateral.
Understanding the Concept
PoS is energy-efficient compared to Proof of Work. No mining rigs, no massive electricity bills. Ethereum's move to PoS (The Merge) cut its energy use by 99%. Validators earn staking rewards—typically 4-12% APY depending on the chain. The tradeoff: PoS may be more centralizing since wealthy validators stake more and earn more. Slashing risks exist—validators who misbehave lose staked tokens. If you hold PoS tokens (ETH, SOL, ADA), staking earns passive income. The alternative is missing out on rewards while supply inflates around you.
Real-World Example
You stake 32 ETH to run an Ethereum validator node. Each year, you earn approximately 4-5% in ETH rewards. Your 32 ETH becomes 33.5 ETH. If you misbehave (double-sign blocks), you get slashed and lose ETH.
How Strykr Helps
Strykr tracks Proof of Stake developments across the crypto ecosystem. Our AI provides real-time insights and alerts to help you navigate the market with confidence.
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