cryptolinkbase.com
Cryptocurrency and Blockchain Knowledge Directory.
Category: PoS Staking -> General info
Type: documentation
"You can stake by delegating your tokens to validators who process transactions and run the network. Delegating stake is a shared-risk shared-reward financial model that may provide returns to holders of tokens delegated for a long period. This is achieved by aligning the financial incentives of the token-holders (delegators) and the validators to whom they delegate. The more stake delegated to a validator, the more often this validator is chosen to write new transactions to the ledger. The more transactions the validator writes, the more rewards the validator and its delegators earn. Validators who configure their systems to be able to process more transactions earn proportionally more rewards and because they keep the network running as fast and as smoothly as possible."
