Staking is a way to earn rewards (cryptocurrency) while helping strengthen the security of the blockchain network. You can unstake your crypto at any time, and your crypto is always yours.
You can stake from your Coinbase primary balance. Business accounts and funds stored in a vault aren’t eligible for rewards.
Process
When the minimum balance is met, a node deposits that amount of cryptocurrency into the network as a stake (similar to a security deposit).
The size of a stake is directly proportional to the chances of that node being chosen to forge the next block.
If the node successfully creates a block, the validator receives a reward, similar to how a miner is rewarded in proof-of-work chains.
Validators lose part of their stake if they double-sign or attempt to attack the network.
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