Staking means locking up cryptocurrency to help secure a proof-of-stake network, in exchange for a share of the network's block rewards and fees. Stakers either run a validator node themselves or delegate their stake to an existing validator.
Two main flavors: - **Solo staking**: you run validator software, lock a minimum amount (32 ETH on Ethereum), and earn rewards directly. You also take on slashing risk: misbehaving validators lose a portion of their stake. - **Delegated staking**: you lock tokens with a validator and share in their rewards. Easier but introduces counterparty risk — the validator could misbehave or go offline, costing you slashing penalties or missed rewards.
Liquid staking protocols (Lido on Ethereum, Jito on Solana) issue a tradeable token representing the staked position, letting the asset remain usable in DeFi while still earning staking yield.
Typical staking yields in 2026: - Ethereum: ~3-4% APR - Solana: ~6-8% APR - Cosmos Hub: ~15-20% APR - Polkadot: ~10-14% APR
Yields decline as more of a network's supply is staked — more competition for the same reward pool.