Proof of Stake (PoS)

Proof of stake is a consensus design in which validators commit eligible assets and risk penalties while proposing or attesting to valid blockchain updates.

Selection and reward rules vary by protocol, but economic stake is used to discourage conflicting or dishonest behavior. Validators may lose rewards or incur slashing for specified failures, while delegators and service users can face additional custody and operator risks. Proof of stake can reduce reliance on computational mining, yet it does not remove software, governance, concentration, liquidity, or asset-price risk.

Staked assets can be locked, lose market value, or be penalized even when projected rewards appear attractive.