---
title: Staking
url: "https://www.unknowngravity.com/en/glosario/staking"
site: Unknown Gravity
published: "2026-08-13T16:30:57+00:00"
modified: "2026-08-13T16:30:57+00:00"
language: en-US
description: "Staking means putting your crypto to work securing a blockchain network in exchange for rewards. It sounds like an interest-bearing deposit, but it is not: your tokens act as collateral for the…"
section: "Home > Staking"
---

# Staking

GLOSSARY · BLOCKCHAIN & WEB3

What staking is in proof-of-stake networks: how rewards are generated, what slashing is, the variants (delegated, pools, liquid staking) and the fine print.

WHAT IS IT? · FOR DUMMIES

**Staking** means putting your crypto to work securing a blockchain network in exchange for rewards. It sounds like an interest-bearing deposit, but it is not: your tokens act as **collateral** for the networks good behaviour and may be locked for a time — and even penalised if the validator you back misbehaves.

WHAT IS IT? · PRO

In *proof-of-stake* networks, **validators** lock tokens as collateral to propose and validate blocks; the network rewards them for doing it well and penalises them (**slashing**) for downtime or fraud. Users can participate several ways: **solo staking** (running your own validator), **delegated staking** (backing someone elses), through **pools** that aggregate small participants, or via **liquid staking**, which issues a liquid token representing the position — the model Lido popularised, as we explain in [our Lido analysis](/en/articulos/lido-dao-ldo-que-es-y-como-funciona).

Three pieces of fine print matter. **Yields vary** with total participation and network issuance — todays advertised rate is not a promise. **Liquidity may be limited** by lock-ups and exit queues. And offering custodial staking to third parties as a service may fall within the authorisation perimeter we explain in our guide to the [CASP licence](/en/articulos/casp-license-spain-mica).

## 01 / Key points

- Tokens locked as collateral in proof-of-stake networks, in exchange for rewards
- Slashing penalises validator downtime or fraud
- Variants: solo, delegated, pools and liquid staking (liquid token)
- Custodial staking as a service may require authorisation

## 02 / Advantages

- **Yield for securing the network** without selling the position
- **Low entry barrier** via delegation and pools
- **Liquid staking** keeps the position usable in DeFi

## 03 / Disadvantages

- **Slashing and validator risk**: the collateral can take losses
- **Lock-ups and exit queues**: liquidity is not instant
- **Advertised APR is not fixed** and the underlying token remains volatile

This entry is informative. It is not legal, tax or investment advice. The rules cited change: check the current version on [BOE](https://www.boe.es) and [EUR-Lex](https://eur-lex.europa.eu).